Toronto Land Transfer Tax

Land transfer tax is a one-time tax you pay to the government when a property is registered in your name. If you buy a home inside the City of Toronto, you pay two separate land transfer taxes on the same purchase: the provincial Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. Buyers in the rest of the Greater Toronto Area pay only the provincial one.

Both taxes are worked out from the purchase price using graduated brackets, and both are due on closing day. For a Toronto buyer, the combined bill is usually one of the largest closing costs after the down payment, so it pays to understand the numbers before you write an offer, not after.

The figures in this guide were accurate as of the middle of 2026, but rates, brackets, and rebates do change, sometimes with little notice. Treat every number here as a solid starting point rather than a final quote. Always confirm the current amounts with the City of Toronto, ontario.ca, your real estate lawyer, and me before you commit. First-time buyers can claim a rebate on each tax, and I walk through both further down.

What land transfer tax actually is

Land transfer tax is charged when ownership of a property moves from one party to another and the transfer is registered on title. The buyer pays it. It applies to houses, condominiums, vacant land, and most other real estate, new or resale. You pay it once, at the moment you take ownership, and then it is settled for that purchase.

People sometimes mix up land transfer tax with other housing costs, so it helps to keep a few things separate in your mind.

A one-time tax, not a yearly one

Property tax is the recurring bill you pay to the city every year to help fund services like garbage collection, roads, transit, and libraries. Land transfer tax is different. You pay it a single time, on the day you buy, and then you are done with it for that transaction. If you sell and buy again later, you pay it again on the new purchase, because it attaches to the transaction, not to you personally.

What the tax is calculated on

Both the provincial and the Toronto tax are calculated on what the rules call the value of the consideration. For almost every ordinary home sale, that simply means the purchase price you agreed to in your offer. In some cases the value of the consideration can include other items, such as certain debts or liabilities you take on as part of the deal.

Things that typically factor into the amount include:

The agreed purchase price of the home.
Any mortgage or debt you assume as part of the transaction.
The value of certain benefits given to the seller as part of the deal.

For the large majority of buyers, the price on the agreement of purchase and sale is the number the tax is built from. Your real estate lawyer confirms the exact figure used, and I always recommend asking them to check it, especially on anything unusual like an assignment sale or a transfer between family members.

It is separate from HST

Land transfer tax is also not the same as HST. Most resale homes carry no HST on the purchase price, while some new construction does have HST, sometimes with rebates of its own. That is a separate subject from land transfer tax, but buyers often lump the two together, so keep them apart in your planning. For anything involving HST on a new build, confirm the details with your lawyer and the builder.

Why Toronto buyers pay both the provincial and the municipal tax

This is the part that surprises people, so let me explain how Toronto ended up with two land transfer taxes when everywhere else in the province has one.

The provincial tax applies everywhere in Ontario

The Ontario Land Transfer Tax applies to every property purchase in the province, from Windsor to Ottawa to Thunder Bay. It is administered by the provincial Ministry of Finance, and it has been in place for decades. If you buy anywhere in Ontario, you pay it. There is no way around that part.

Toronto layers its own municipal tax on top

The Toronto Municipal Land Transfer Tax, usually shortened to MLTT, is an extra tax charged by the City of Toronto on top of the provincial one. The city was given the power to charge it under the City of Toronto Act, 2006, a provincial law that grants Toronto certain revenue tools that other municipalities do not have. The MLTT has been in effect since February 1, 2008, and the revenue helps fund the city budget. So a Toronto purchase triggers the provincial tax and the municipal tax on the same closing.

Toronto is the only city in Ontario that does this

Here is the point worth remembering: Toronto is the only municipality in Ontario that charges its own municipal land transfer tax. Nowhere else in the province adds a second, city-level land transfer tax. That single fact is why closing costs in Toronto run higher than in the surrounding regions, and it is one of the first things I flag for buyers who are comparing a home in the city against a similar one just outside it. Because municipal rules can be amended, confirm the current situation with the City of Toronto and your lawyer before you rely on it.

How the provincial Ontario Land Transfer Tax works

The Ontario tax uses graduated, or marginal, brackets. That word matters, and I explain exactly what it means in the worked walkthrough further down. For now, the key idea is that different portions of your purchase price are taxed at different rates, stacking up as the price rises.

The provincial marginal brackets

As of the middle of 2026, the Ontario Land Transfer Tax rates for a property containing one or two single-family residences are:

0.5% on the portion of the price up to $55,000.
1.0% on the portion from $55,000 to $250,000.
1.5% on the portion from $250,000 to $400,000.
2.0% on the portion from $400,000 to $2,000,000.
2.5% on the portion above $2,000,000.

The top 2.5% rate on the amount over $2,000,000 applies to properties with one or two single-family residences, which covers most houses people buy to live in. Please confirm these brackets on ontario.ca or with your lawyer before you rely on them, since the province can adjust them.

A few reference points on the provincial tax

Because the brackets stack, it helps to see the running total at a few common price points. On the provincial tax alone, the cumulative amount works out to roughly:

About $2,225 at a $250,000 price.
About $4,475 at a $400,000 price.
About $16,475 at a $1,000,000 price.
About $36,475 at a $2,000,000 price.

Those are illustrations, not quotes. Run your own price through a calculator and confirm the result with your lawyer.

How the Toronto Municipal Land Transfer Tax works

The Toronto MLTT is the second tax, and it is where Toronto buyers feel the difference. For most of the price range it mirrors the province, but at the high end Toronto now charges more.

The base brackets mirror the province up to $2 million

Up to $2,000,000, the Toronto MLTT uses the same brackets as the provincial tax:

0.5% on the portion up to $55,000.
1.0% on the portion from $55,000 to $250,000.
1.5% on the portion from $250,000 to $400,000.
2.0% on the portion from $400,000 to $2,000,000.

Because the two taxes match through this range, a simple way to think about a typical Toronto home under $2,000,000 is that you pay the provincial amount, then pay the same amount again to the city. Above $2,000,000, the city adds 2.5% on the portion from $2,000,000 to $3,000,000.

The graduated luxury tiers on high-value homes

Toronto brought in a higher, graduated scale for expensive homes. Effective April 1, 2026, for properties with one or two single-family residences, the Toronto MLTT adds these tiers above $3,000,000:

4.40% on the portion from $3,000,000 to $4,000,000.
5.45% on the portion from $4,000,000 to $5,000,000.
6.50% on the portion from $5,000,000 to $10,000,000.
7.55% on the portion from $10,000,000 to $20,000,000.
8.60% on the portion above $20,000,000.

These luxury tiers sit on the municipal side only. The provincial tax still tops out at 2.5% on the amount over $2,000,000. If you are buying above $3,000,000, the extra municipal cost can be substantial, so get a precise figure from your lawyer early and confirm the current tiers with the City of Toronto.

One timing detail matters a great deal here. The tax is based on when the transfer is registered, which lines up with your closing date, not the date you signed the agreement. A buyer who signed in 2025 but closes after April 1, 2026 is generally subject to the rates in force on the closing date. If your purchase straddles a rate change, confirm the treatment with your lawyer and the City of Toronto so there are no surprises.

The small administration fee

On top of the tax itself, the city charges a processing cost. The Toronto MLTT administration fee is about $102.56 plus HST per transaction as of mid-2026. It is minor next to the tax, but it belongs in your closing budget, and like everything else here it can be updated, so confirm the current amount with the City of Toronto.

The first-time buyer rebates on both taxes

If you have never owned a home, there is real relief available, and it applies to each tax separately. This is one of the most valuable things a first-time buyer in Toronto can claim, so it is worth getting right.

The provincial refund of up to $4,000

Ontario offers first-time buyers a refund of the provincial Land Transfer Tax up to a maximum of $4,000. In practical terms, that maximum fully covers the provincial tax on roughly the first $368,000 of the price. If your home costs more than that, you still receive the full $4,000; you simply pay the provincial tax that applies above the covered amount.

The Toronto rebate of up to $4,475

The City of Toronto offers its own first-time buyer rebate on the municipal tax, up to a maximum of $4,475. That amount fully covers the Toronto MLTT on the first $400,000 of the price. Above $400,000, you receive the full rebate and pay the municipal tax on the remainder.

How the two rebates stack for a Toronto first-time buyer

Because the rebates are separate, a qualifying first-time buyer in Toronto can claim both. Combined, that is up to $8,475 off your total land transfer tax. On a lower-priced condo, the two rebates can wipe out a large share of the bill. On a higher-priced home, they knock a fixed amount off the top. Either way it is money you do not want to leave behind.

Who generally qualifies as a first-time buyer

Eligibility rules are specific, and both the province and the city set conditions. As a general guide, to qualify you usually must:

Be at least 18 years old.
Have never owned a home, or an interest in a home, anywhere in the world.
Occupy the home as your principal residence, usually within nine months of the transfer.
Meet residency or status conditions that can apply at the time of purchase.

There is also a spousal rule: if your spouse owned a home while the two of you were together, it can affect your claim. The details decide real dollars, so do not assume. Confirm your eligibility with your real estate lawyer, on ontario.ca, with the City of Toronto, and with me before closing, because these conditions are exactly the kind of thing that gets updated.

Who pays the tax, and when it is paid at closing

Land transfer tax is a buyer cost from start to finish. Knowing how and when it changes hands helps you plan your cash.

The buyer pays, not the seller

In an ordinary residential sale, the buyer is responsible for the land transfer tax. The seller does not pay it. This is different from some other closing items that get split or adjusted between the parties. For land transfer tax, it is your cost as the purchaser.

Your lawyer collects and remits it at closing

You do not send a cheque to the province or the city yourself. Your real estate lawyer collects the land transfer tax from you as part of the closing funds, then pays it through the electronic land registration system when the transfer is registered. The provincial tax is paid on registration. For the Toronto MLTT, your lawyer arranges collection and remittance to the city as part of the same closing. By the time the keys are yours, the tax has been handled.

You usually cannot add it to your mortgage

This trips up a lot of first-time buyers, so I say it plainly. Land transfer tax is generally a cash cost due on closing. You normally cannot fold it into your mortgage the way you might imagine. It comes out of your own funds, alongside your down payment and other closing costs. That is why I ask buyers to set the money aside well before closing day. If you are counting on financing it, talk to your mortgage professional and lawyer early, because for most buyers it needs to be paid in cash.

How it differs for buyers elsewhere in the GTA

One of the most common questions I get is some version of, “Do I pay the Toronto tax if I buy in the suburbs?” The short answer depends entirely on which side of the city boundary the home sits.

The rest of the GTA pays only the provincial tax

If you buy in Mississauga, Brampton, Oakville, Vaughan, Markham, Richmond Hill, Pickering, or any other municipality outside the City of Toronto, you pay only the provincial Ontario Land Transfer Tax. There is no municipal land transfer tax in those places. On the same purchase price, that can mean thousands of dollars less in closing costs than an equivalent home inside Toronto.

Etobicoke, North York, Scarborough, York, and East York are inside Toronto

Here is the trap I see most often. The former municipalities of Etobicoke, North York, Scarborough, York, and East York are all part of the City of Toronto. They were amalgamated into the city years ago, and for land transfer tax purposes they are Toronto. If you buy a home in North York or Scarborough, you pay both taxes, the same as a buyer downtown. Do not assume that a neighbourhood with its own name and identity sits outside the city. For land transfer tax, the City of Toronto boundary is what counts.

A city line can change your closing costs

Because of that boundary, two similar homes at a similar price can carry very different tax bills depending on which municipality they are in. A house on the Toronto side of Steeles Avenue is taxed twice; a comparable house on the Vaughan or Markham side is taxed once. I am not suggesting anyone buy based on a tax line alone, but you should know it exists so it does not catch you off guard. If you are weighing homes on both sides of a boundary, ask me for the numbers on each so you can compare the true cost, and confirm them with your lawyer.

A worked walkthrough of how the marginal brackets stack

The word marginal does a lot of heavy lifting, and misunderstanding it leads people to badly overestimate the tax. Let me take the mystery out of it.

Marginal means each rate applies only to its own slice

A graduated or marginal tax does not apply a single rate to your whole purchase price. Instead, each rate applies only to the portion of the price that falls inside that bracket. The first slice of the price is taxed at the lowest rate, the next slice at the next rate, and so on. Only the part of the price that reaches into the top bracket is taxed at the top rate. Your tax is the sum of all those slices, which is always lower than if the top rate applied to the entire price.

Building the tax slice by slice

To show the mechanics, take a sample Toronto home priced at $1,000,000. I am using that figure only as an example, not as a quote for your purchase. The provincial tax builds up like this:

0.5% on the first $55,000 is $275.
1.0% on the next $195,000, from $55,000 to $250,000, is $1,950.
1.5% on the next $150,000, from $250,000 to $400,000, is $2,250.
2.0% on the next $600,000, from $400,000 to $1,000,000, is $12,000.

Add those slices and the provincial Ontario Land Transfer Tax is about $16,475. Notice that only the portion above $400,000 is taxed at 2.0%, not the whole million.

Doubling up for a Toronto address

Because the Toronto MLTT mirrors the provincial brackets under $2,000,000, the city tax on that same $1,000,000 home is also about $16,475. Put them together and the combined land transfer tax is roughly $32,950, plus the small administration fee. If the buyer is a qualifying first-time buyer, subtract up to $4,000 from the provincial side and up to $4,475 from the city side, which brings the combined tax down to about $24,475 in this example.

Here is a short reference showing the combined provincial and Toronto tax, before any first-time buyer rebate, at a few sample prices:

Around $12,950 combined at a $500,000 price.
Around $20,950 combined at a $700,000 price.
Around $32,950 combined at a $1,000,000 price.
Around $52,950 combined at a $1,500,000 price.
Around $72,950 combined at a $2,000,000 price.

These are rounded illustrations meant to show how the brackets stack, and nothing more. Your exact figure depends on the current rates, your price, and your rebate eligibility, so confirm it with a calculator and your lawyer.

How to estimate and budget for it

Budgeting for land transfer tax is straightforward once you know it is coming. The mistake is forgetting about it until closing is near.

Estimate early, then verify

Start with an online land transfer tax calculator that includes both the Ontario and Toronto amounts. Enter your target price and, if you qualify, the first-time buyer rebates. That gives you a working estimate for planning. Then verify the number with your real estate lawyer before you firm up an offer, because a calculator reflects whatever rates were programmed into it, and rates change.

Treat it as cash you need on closing day

Land transfer tax sits alongside your other closing costs, and I encourage buyers to save for the whole group as one pool. A realistic closing budget usually includes:

Provincial Land Transfer Tax, and the Toronto MLTT if you are buying in the city.
The Toronto MLTT administration fee, plus HST, on a Toronto purchase.
Legal fees and disbursements.
Title insurance.
Closing adjustments, such as prepaid property taxes or utilities.
Home inspection and moving costs.

Land transfer tax is often the biggest single line in that list for a Toronto buyer, so give it the attention it deserves.

Ask for the number before you offer

The best time to know your land transfer tax is before you write an offer, not on closing day. This matters most in two situations: when your price sits near a bracket edge, and when you are comparing homes inside Toronto against homes just outside it. In both cases, small differences move the tax in ways that are easy to miss. Send me the address and price you are considering and I will give you a clear estimate, then point you to your lawyer to confirm it.

Frequently asked questions

Is the Toronto land transfer tax the same as the Ontario one?

No. They are two separate taxes with separate rules and separate rebates. The Ontario Land Transfer Tax is provincial and applies across the whole province. The Toronto Municipal Land Transfer Tax is charged only by the City of Toronto. A Toronto buyer pays both on the same purchase.

Do I really pay two land transfer taxes if I buy in Toronto?

Yes. Inside the City of Toronto you pay the provincial tax and the municipal tax on the same closing. It is the reason closing costs in Toronto are higher than in the surrounding regions. Confirm the current rates with the City of Toronto and ontario.ca so your budget is accurate.

How much is land transfer tax on a $1,000,000 home in Toronto?

Using mid-2026 rates, the combined provincial and Toronto land transfer tax on a $1,000,000 home is about $32,950 before any rebate, plus the small city administration fee. A qualifying first-time buyer can reduce that by up to $8,475. Treat this as an estimate and confirm your exact figure with your lawyer.

Does the seller pay any land transfer tax?

No. In a standard residential sale the buyer pays the land transfer tax. The seller has other costs, but this one is yours as the purchaser.

Can I add the land transfer tax to my mortgage?

Usually not. Land transfer tax is generally a cash cost due on closing and paid from your own funds. If you are hoping to finance it, speak with your mortgage professional and lawyer well ahead of closing, because most buyers pay it in cash.

Do first-time buyers pay land transfer tax in Toronto?

Often they pay a reduced amount, and sometimes very little on a lower-priced home. First-time buyers can claim up to $4,000 back on the provincial tax and up to $4,475 back on the Toronto tax, for a combined maximum of $8,475. Eligibility conditions apply, so confirm that you qualify before you count on it.

If I buy in North York or Scarborough, do I pay the Toronto tax?

Yes. North York, Scarborough, Etobicoke, York, and East York are all inside the City of Toronto, so buyers there pay both the provincial and the municipal land transfer tax. The neighbourhood name does not change the fact that it is Toronto for tax purposes.

Does Mississauga, Vaughan, or Markham have a municipal land transfer tax?

No. Toronto is the only municipality in Ontario with its own land transfer tax. Buyers in Mississauga, Vaughan, Markham, Brampton, Oakville, and the rest of the GTA pay only the provincial Ontario Land Transfer Tax.

When is the land transfer tax paid?

On closing day. Your lawyer collects it with your closing funds and remits it when the transfer is registered. The rate that applies is generally the rate in effect on your closing date, not the date you signed the agreement.

What happens if I buy a home over $3 million in Toronto?

The city’s graduated luxury tiers apply on the municipal side for properties with one or two single-family residences, starting at 4.40% on the portion from $3,000,000 to $4,000,000 and rising to 8.60% on the portion above $20,000,000. The provincial tax still tops out at 2.5% over $2,000,000. Above $3,000,000 the municipal cost climbs quickly, so get a precise figure from your lawyer.

Are there any exemptions from land transfer tax?

Some specific exemptions and special rules exist, for example certain transfers between spouses or certain transfers of farmed land within a family. They are narrow and fact-specific. If you think one might apply to you, do not assume anything; ask your real estate lawyer to review your situation.

Do non-residents or foreign buyers pay extra?

Additional taxes can apply to non-resident and foreign buyers, both at the provincial level and, in Toronto, at the municipal level, and they are separate from the land transfer tax described here. The rules in this area change and are strictly applied. If this could affect you, confirm the current position with your lawyer, the City of Toronto, and ontario.ca before you buy.

Talk it through before you buy

Land transfer tax feels complicated from the outside and becomes simple once someone walks you through your own numbers. The brackets stack, the Toronto tax doubles up on the provincial one, the first-time buyer rebates take a real bite out of the bill, and the city boundary decides whether you pay one tax or two. Get those four things right and you will budget with confidence.

I am Firas Swaida, a real estate agent with RE/MAX Realty Services Inc., Brokerage. I help buyers and sellers across Toronto and the GTA, and I work with clients in English and Arabic. If you want a clear estimate of your land transfer tax, a read on whether a home sits inside Toronto or just outside it, or straight answers about the first-time buyer rebates, I am glad to help. Call or text me at (647) 402-4727, and always confirm the current figures with the City of Toronto, ontario.ca, and your real estate lawyer before you close.

Toronto Land Transfer Tax