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Buying in Toronto? You pay land transfer tax twice — here's the math

Toronto is the only Ontario city with its own land transfer tax on top of the province's. On a $1M home that's roughly $33,000 due on closing day — and new luxury tiers started April 1.

2 min read

Most buyers budget for the down payment. Fewer budget for the bill that arrives on closing day: land transfer tax. In Toronto you pay it twice — once to the province and once to the City, through the Municipal Land Transfer Tax (MLTT). Toronto is the only municipality in Ontario that charges one.

This is general information, not legal or financial advice. Your lawyer will calculate the exact figures for your purchase.

How the City's tax is calculated

The MLTT is marginal, like income tax: each slice of the price is taxed at its own rate. For a one- or two-family home, the City's published schedule is:

  • 0.5% on the first $55,000
  • 1.0% from $55,000 to $250,000
  • 1.5% from $250,000 to $400,000
  • 2.0% from $400,000 to $2,000,000
  • 2.5% from $2,000,000 to $3,000,000

For other residential property (condos in a high-rise, for example), the same brackets apply but stop at 2.0% above $400,000 — there are no luxury tiers.

A worked example

On a $1,000,000 purchase, the City's MLTT works out to $16,475:

  • $55,000 × 0.5% = $275
  • $195,000 × 1.0% = $1,950
  • $150,000 × 1.5% = $2,250
  • $600,000 × 2.0% = $12,000

Ontario's own land transfer tax uses the same brackets up to $2 million for a home like this, so the provincial bill is about the same — roughly $32,950 combined. On an $800,000 condo, it's about $24,950. That's cash you need on top of the down payment.

Budget tip: land transfer tax is paid on closing, not financed into your mortgage. Lenders expect you to show it, along with legal fees and adjustments, as separate savings.

What changed in 2026

On December 17, 2025, City Council approved graduated rates for high-value single-family homes, effective April 1, 2026: 4.40% on the slice from $3M to $4M, rising through 5.45%, 6.50% and 7.55%, to 8.60% above $20M. If you're buying under $3M, none of that touches you.

Two other charges to know about:

  • Foreign buyers also pay a 10% Municipal Non-Resident Speculation Tax (MNRST) on the price, effective January 1, 2025.
  • The City charges an administration fee of $102.56 plus HST on registration.

First-time buyers

First-time buyers can claim rebates against both the provincial and municipal tax, but the maximums and eligibility rules are set by each government and change. Ask your lawyer to confirm the current refund amounts for your situation before you rely on them.

Don't stop at the closing costs

Land transfer tax is a one-time hit. The recurring cost is the annual bill — see how much property tax costs in Toronto and estimate it for a specific address on the property tax tool. Then read the address's public record before you offer: permits, orders, and the full property snapshot. To size up the income side of the purchase, our guide to the income needed to buy a Toronto condo is a good next step.

Sources: City of Toronto — MLTT rates and fees.

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