Buying a home in Toronto involves more than your down payment and mortgage.
Toronto Land Transfer Tax can add tens of thousands of dollars to the amount you need at closing.
Toronto buyers face an important difference compared with buyers in many surrounding GTA municipalities.
A property inside the City of Toronto can be subject to:
- Ontario Land Transfer Tax
- Toronto Municipal Land Transfer Tax
- Other taxes in specific situations, such as Ontario NRST or Toronto MNRST
That means Toronto buyers can effectively face two separate land transfer taxes on the same purchase.
$1 MILLION TORONTO HOME EXAMPLE
Approximately $32,950 in combined land transfer tax
This is before any eligible first-time home buyer rebates.
Before making an offer, calculate this cost separately from your down payment.
Calculate Before You Make an Offer
Enter the purchase price and estimate Ontario and Toronto land transfer taxes before deciding how much cash you can safely use for your down payment.
Toronto Land Transfer Tax: Quick Answer
Toronto home buyers can be required to pay both Ontario Land Transfer Tax and Toronto Municipal Land Transfer Tax. Eligible first-time buyers may qualify for rebates from both levels of government.
| Question | 2026 Answer |
|---|---|
| Does Toronto charge land transfer tax? | Yes |
| Ontario LTT applies? | Yes |
| Toronto Municipal LTT applies? | Yes |
| Who normally pays it? | Buyer / transferee |
| When is it normally paid? | At registration / closing |
| Ontario first-time buyer refund | Up to $4,000 |
| Toronto first-time buyer rebate | Up to $4,475 |
| Potential combined first-time buyer relief | Up to $8,475 |
| High-value Toronto MLTT rates changed? | Yes, April 1, 2026 |
| Ontario NRST in applicable transactions | 25% |
| Toronto MNRST in applicable transactions | 10% |
Why Toronto Buyers Pay Two Land Transfer Taxes
Ontario charges land transfer tax when qualifying land or an interest in land is transferred.
The City of Toronto also has its own Municipal Land Transfer Tax, usually called MLTT.
Toronto's municipal tax has applied since February 1, 2008.
Ontario LTT
Provincial tax that applies across Ontario when the transaction is taxable.
Toronto MLTT
Additional municipal tax for qualifying property transactions inside the City of Toronto.
Ontario Land Transfer Tax Rates for Toronto Buyers
Toronto buyers first calculate the provincial Ontario tax.
Ontario uses marginal tax brackets. You do not apply the highest rate to the entire purchase price.
| Portion of Purchase Price | Ontario LTT Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| Above $2,000,000* | 2.5% |
*The 2.5% provincial bracket applies to the qualifying residential category defined under Ontario's rules.
Official source: Ontario Land Transfer Tax Calculation
Toronto Municipal Land Transfer Tax Rates for 2026
Toronto applies a second marginal tax. Higher rates apply to portions of qualifying high-value residential properties.
| Portion of Purchase Price | Toronto MLTT Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% |
| $3,000,000.01 to $4,000,000 | 4.40% |
| $4,000,000.01 to $5,000,000 | 5.45% |
| $5,000,000.01 to $10,000,000 | 6.50% |
| $10,000,000.01 to $20,000,000 | 7.55% |
| Above $20,000,000 | 8.60% |
Official source: City of Toronto MLTT Rates and Fees
What Changed on April 1, 2026?
Toronto increased MLTT rates on portions of qualifying high-value residential purchases above $3 million.
The current rates apply to relevant transactions registered, or where Toronto MLTT otherwise becomes payable, on or after April 1, 2026.
| Purchase Price | Previous Toronto MLTT | Current Toronto MLTT | Increase |
|---|---|---|---|
| $3,000,000 | $61,475 | $61,475 | $0 |
| $3,500,000 | $78,975 | $83,475 | +$4,500 |
| $4,000,000 | $96,475 | $105,475 | +$9,000 |
| $5,000,000 | $141,475 | $159,975 | +$18,500 |
| $10,000,000 | $416,475 | $484,975 | +$68,500 |
How to Calculate Toronto Land Transfer Tax
For a Toronto purchase, calculate the two taxes separately:
- Calculate Ontario Land Transfer Tax.
- Calculate Toronto Municipal Land Transfer Tax.
- Add the two amounts.
- Subtract only the rebates you actually qualify for.
COMMON $400K TO $2M RESIDENTIAL RANGE
Combined Ontario + Toronto LTT = Purchase Price × 4% − $7,050
This is a convenient shortcut only where the standard corresponding Ontario and Toronto brackets apply. Use the full marginal calculation for other transactions.
Toronto Land Transfer Tax Examples by Purchase Price
The following examples show why Toronto buyers should calculate land transfer tax before deciding how much they can afford to offer.
| Purchase Price | Ontario LTT | Toronto MLTT | Combined LTT |
|---|---|---|---|
| $400,000 | $4,475 | $4,475 | $8,950 |
| $500,000 | $6,475 | $6,475 | $12,950 |
| $650,000 | $9,475 | $9,475 | $18,950 |
| $750,000 | $11,475 | $11,475 | $22,950 |
| $900,000 | $14,475 | $14,475 | $28,950 |
| $1,000,000 | $16,475 | $16,475 | $32,950 |
| $1,500,000 | $26,475 | $26,475 | $52,950 |
| $2,000,000 | $36,475 | $36,475 | $72,950 |
| $3,000,000 | $61,475 | $61,475 | $122,950 |
| $3,500,000 | $73,975 | $83,475 | $157,450 |
| $5,000,000 | $111,475 | $159,975 | $271,450 |
Example: Toronto Land Transfer Tax on a $500,000 Condo
Suppose you purchase a Toronto condo for $500,000.
ONTARIO LTT
$6,475
TORONTO MLTT
$6,475
COMBINED
$12,950
If you qualify for the maximum $4,000 Ontario refund and $4,475 Toronto rebate, the approximate remaining land transfer tax would be $4,475.
Land Transfer Tax on $750,000, $900,000 and $1 Million Toronto Homes
$750,000 Purchase
Ontario LTT: $11,475
Toronto MLTT: $11,475
Combined: $22,950
$900,000 Purchase
Ontario LTT: $14,475
Toronto MLTT: $14,475
Combined: $28,950
$1 Million Purchase
Ontario LTT: $16,475
Toronto MLTT: $16,475
Combined: $32,950
Real Toronto Condo Example Using 2026 Market Data
TRREB reported an average City of Toronto condominium apartment selling price of $667,916 in Q2 2026, compared with $717,403 in Q2 2025.
Q2 TORONTO CONDO AVG.
$667,916
ONTARIO LTT
≈ $9,833
TORONTO MLTT
≈ $9,833
COMBINED
≈ $19,667
If an eligible first-time buyer received the full combined $8,475 reduction, the approximate remaining tax would be about $11,192.
For more Toronto condo buying costs and risks, read the Buying a Condo in Toronto in 2026 guide.
Comparing Toronto Properties?
A lower purchase price does not automatically mean a better purchase. Compare comparable sales, location, building finances, monthly costs and cash needed at closing before making an offer.
First-Time Home Buyer Toronto Land Transfer Tax Rebates
Eligible Toronto first-time home buyers can potentially receive relief from both levels of land transfer tax.
ONTARIO REFUND
Up to $4,000
TORONTO REBATE
Up to $4,475
POTENTIAL COMBINED RELIEF
Up to $8,475
First-Time Buyer Examples
| Purchase Price | Gross Combined LTT | Max. Combined Relief* | Approx. Net LTT* |
|---|---|---|---|
| $400,000 | $8,950 | $8,475 | $475 |
| $500,000 | $12,950 | $8,475 | $4,475 |
| $650,000 | $18,950 | $8,475 | $10,475 |
| $750,000 | $22,950 | $8,475 | $14,475 |
| $900,000 | $28,950 | $8,475 | $20,475 |
| $1,000,000 | $32,950 | $8,475 | $24,475 |
| $1,500,000 | $52,950 | $8,475 | $44,475 |
*Examples assume eligibility for the maximum available Ontario and Toronto first-time buyer relief.
Who Qualifies as a First-Time Buyer?
Eligibility rules matter. A buyer should not automatically subtract $8,475 from the closing budget.
- The purchaser must meet applicable age requirements.
- The home generally needs to become the buyer's principal residence within the required period.
- Previous home ownership anywhere in the world can affect eligibility.
- A spouse's ownership history can matter.
- Canadian citizenship or permanent-residency rules apply.
- Multiple purchasers can change the amount available.
Official information: Ontario First-Time Home Buyer Refund and Toronto MLTT Rebate.
What If You Owned a Home Outside Canada?
Being a first-time buyer in Canada does not automatically make you a first-time buyer for land transfer tax purposes.
Previous ownership of an eligible home in another country can affect rebate eligibility.
What If Your Spouse Owned a Home Before?
A spouse's previous ownership can affect eligibility.
The timing of that ownership and when the relationship began can matter. Confirm the specific situation with the lawyer handling the transaction before relying on a rebate.
What If More Than One Person Is Buying?
Joint ownership can change the available refund.
- One purchaser may qualify while another does not.
- Ownership percentages may matter.
- Parents added to title can affect the calculation.
- Sibling or investment-partner arrangements can produce different outcomes.
Do not structure title solely for a perceived tax benefit without legal and financing advice.
Does Toronto Land Transfer Tax Apply in North York?
Yes. North York is part of the current City of Toronto.
The same general Toronto MLTT principle applies to properties in areas such as:
Does Toronto Land Transfer Tax Apply in Mississauga, Markham, Vaughan or Oakville?
Toronto MLTT is tied to qualifying transactions inside the City of Toronto.
A property in another GTA municipality does not become subject to Toronto MLTT simply because it is close to Toronto.
- Mississauga
- Markham
- Vaughan
- Richmond Hill
- Oakville
- Pickering
- Ajax
- Whitby
Ontario LTT may still apply. For a detailed local comparison, see the Land Transfer Tax Mississauga 2026 guide.
Toronto vs Mississauga Land Transfer Tax
The difference becomes easy to see when comparing the same purchase price.
| $900,000 Example | Ontario LTT | Municipal LTT | Total |
|---|---|---|---|
| Toronto | $14,475 | $14,475 | $28,950 |
| Mississauga | $14,475 | $0 | $14,475 |
The gross difference in this example is $14,475.
Tax is only one factor. Buyers comparing the two cities should also consider neighbourhood, property type, commute, transit, schools, monthly costs and resale. Explore the best neighbourhoods in Toronto and current Toronto housing market.
When Is Toronto Land Transfer Tax Paid?
Land transfer taxes are normally dealt with when the transfer is registered and the transaction closes.
The buyer's lawyer generally handles:
- Registration
- Land transfer tax calculation
- Closing funds
- Applicable rebate documentation
- Statement of adjustments
Do not wait until closing week to find out how much cash is required.
Toronto MLTT Administration Fees
The municipal tax is not the only Toronto MLTT-related amount that may appear in the transaction.
| Fee | 2026 Amount |
|---|---|
| MLTT administration fee | $102.56 + HST |
| Refund/rebate processing fee after registration | $221.22 |
How Much Cash Do You Actually Need at Closing?
Your Toronto buying budget is not simply down payment plus mortgage.
Purchase Funds
- Deposit
- Remaining down payment
Government Taxes
- Ontario LTT
- Toronto MLTT
- Other applicable taxes
Legal & Closing
- Legal fees
- Disbursements
- Title insurance
Adjustments & Moving
- Property tax adjustments
- Condo adjustments
- Moving and repairs
Is Toronto Land Transfer Tax Included in the Mortgage?
Do not assume land transfer tax is included in your mortgage.
Buyers should normally plan for it as a separate closing expense and ask their lender:
- How much cash must I show for closing?
- Which costs are outside my mortgage?
- How much cash remains after my down payment?
- Have Ontario and Toronto LTT both been included in my budget?
Does a Toronto Condo Pay Land Transfer Tax?
Yes. Buying a condominium does not create a general exemption from Ontario LTT or Toronto MLTT.
A condo buyer should also evaluate costs that do not appear in the land transfer tax calculation:
- Maintenance fees
- Reserve fund condition
- Status certificate
- Special assessments
- Parking and locker costs
- Insurance and building rules
See the detailed guide to Toronto condo maintenance fees before comparing monthly carrying costs.
What About Pre-Construction Condos?
A pre-construction closing can involve more than the advertised purchase price.
- Land transfer taxes
- Builder adjustments
- Development-related charges
- Utility charges
- Tarion-related amounts
- Legal costs
- HST considerations
Have the Agreement of Purchase and Sale reviewed by a qualified real estate lawyer.
Toronto Land Transfer Tax and Foreign Buyers
Foreign-buyer transactions can involve additional tax layers.
| Tax | Government | General Purpose |
|---|---|---|
| Ontario LTT | Ontario | Provincial land transfer tax |
| Toronto MLTT | Toronto | Municipal land transfer tax |
| Ontario NRST | Ontario | Applicable non-resident speculation tax |
| Toronto MNRST | Toronto | Applicable municipal non-resident speculation tax |
These transactions can be complex. Do not rely on a basic LTT calculator alone if foreign-buyer rules may apply.
What Buyers Often Get Wrong About Toronto Land Transfer Tax
1. Budgeting for Only One Tax
Toronto buyers can face both Ontario and Toronto land transfer taxes.
2. Applying One Rate to Everything
The taxes use marginal brackets.
3. Using an Old Calculator
High-value Toronto rates changed on April 1, 2026.
4. Assuming Every FTHB Gets $8,475
That is the maximum potential combined relief. Eligibility applies.
5. Ignoring Worldwide Ownership
Previous ownership outside Canada may affect first-time buyer eligibility.
6. Thinking North York Is Exempt
North York is part of Toronto for municipal LTT purposes.
7. Applying Toronto MLTT Across the GTA
Mississauga, Oakville, Markham and Vaughan are outside the City of Toronto.
8. Using All Savings for the Down Payment
Closing costs still need to be funded.
Toronto Land Transfer Tax vs Property Tax
| Toronto Land Transfer Tax | Property Tax |
|---|---|
| Connected to buying/transferring property | Recurring ownership cost |
| Normally paid around registration/closing | Paid regularly |
| Ontario + Toronto taxes may apply | Municipal property-tax system |
| Based largely on value of consideration | Based on assessed property value and tax rates |
Can You Avoid Toronto Land Transfer Tax?
There is no general option that lets an ordinary buyer simply choose not to pay Toronto MLTT.
Specific rebates, exemptions or special rules can apply in particular situations.
- Eligible first-time buyers
- Certain transfers
- Specific legal ownership circumstances
- Statutory exemptions
Get legal advice before changing an ownership structure for tax reasons.
Should Land Transfer Tax Change How Much You Offer?
It can.
A higher purchase price can increase more than your mortgage payment.
- Down payment
- Ontario LTT
- Toronto MLTT
- Monthly carrying costs
- Total cash required to close
Before increasing an offer, understand what the new purchase price does to the entire acquisition budget.
Toronto Buyer Pre-Offer Checklist
Frequently Asked Questions About Toronto Land Transfer Tax
How Much Is Land Transfer Tax in Toronto?
Toronto buyers can pay both Ontario LTT and Toronto MLTT. A typical $1 million residential purchase produces approximately $32,950 combined before eligible rebates.
How Much Is Toronto Land Transfer Tax on a $400,000 Home?
Ontario LTT is approximately $4,475 and Toronto MLTT is approximately $4,475, for a combined amount of $8,950.
How Much Is Toronto Land Transfer Tax on a $500,000 Property?
The combined Ontario and Toronto land transfer taxes are approximately $12,950 before rebates.
How Much Is Land Transfer Tax on a $700,000 Toronto Home?
Ontario LTT is approximately $10,475 and Toronto MLTT is approximately $10,475, for a combined amount of about $20,950.
How Much Is Land Transfer Tax on a $1 Million Toronto Home?
Ontario LTT is approximately $16,475 and Toronto MLTT is approximately $16,475, for a combined amount of $32,950.
Who Pays Toronto Land Transfer Tax?
The purchaser or transferee is generally responsible. The buyer's lawyer normally handles the taxes as part of closing and registration.
What Is the Toronto First-Time Buyer Rebate?
The maximum Toronto MLTT first-time home buyer rebate is currently $4,475, subject to eligibility.
Can a Toronto First-Time Buyer Get Both Rebates?
Potentially yes, if the purchaser satisfies the applicable Ontario and Toronto requirements. The maximum combined potential relief is $8,475.
Does Toronto Land Transfer Tax Apply in North York?
Yes. North York is part of the City of Toronto.
Does Toronto Land Transfer Tax Apply in Mississauga?
Toronto MLTT does not apply simply because a property is in the GTA. A Mississauga property is outside Toronto's municipal tax jurisdiction.
Is There Toronto Land Transfer Tax on a Condo?
Yes. Toronto condos are not generally exempt from Ontario LTT or Toronto MLTT simply because they are condominiums.
Is Toronto Land Transfer Tax Paid Every Year?
No. Land transfer tax is associated with the transaction. It is different from recurring municipal property tax.
Did Toronto Land Transfer Tax Increase in 2026?
Yes. Toronto increased the rates on portions of qualifying high-value residential properties above $3 million effective April 1, 2026.
Calculate Your Toronto Land Transfer Tax
Estimate Ontario LTT, Toronto MLTT and the impact on your closing budget before you submit an offer.
Planning to Buy a Home in Toronto?
Land transfer tax should be part of the buying decision before you submit an offer.
The property also needs to make sense based on:
- Location
- Recent comparable sales
- Property condition
- Condo finances where applicable
- Commute
- Monthly carrying costs
- Future resale
- Your long-term plans
If you are comparing a Toronto condo, townhouse or house, Saeed Anwar can help you review the property, comparable sales and overall buying strategy before you make an offer.
Saeed Anwar
Real Estate Broker
Important Information
This guide is based on published Ontario and City of Toronto land transfer tax information available in September 2026. Toronto's high-value residential MLTT rates changed on April 1, 2026.
Tax treatment can vary by property type, value of consideration, ownership structure, residency, first-time buyer status, spouse history, transaction structure and applicable exemptions. This content is general real estate information and is not legal, accounting, mortgage or tax advice. Confirm the exact amount with your lawyer and other qualified professionals before closing.
