Toronto is one of the only cities in Canada where you pay land transfer tax twice on the same purchase. It is the largest closing cost most buyers face, it has to be paid in cash, and it is routinely underestimated by five figures.
The rates changed in April 2026 at the top end of the market, so this is worth a fresh read even if you thought you knew the numbers. Here is the whole thing — both tables, the rebates, the exemptions and worked examples from a $900,000 condo to a $5,000,000 house.
Why Toronto buyers pay twice
Every property purchase in Ontario attracts the Ontario Land Transfer Tax, payable to the Province on closing. Properties inside the City of Toronto attract a second, near-identical charge — the Municipal Land Transfer Tax (MLTT) — payable to the City.
For homes up to $3 million the two use the same brackets and the same rates, which is why the shorthand "double land transfer tax" holds. Buy the same house one street outside the city boundary and you pay the provincial tax only.
Both are marginal taxes. The rate for each bracket applies only to the portion of the price falling inside it, in the same way income tax brackets work. A $1,000,000 purchase is not taxed at 2% on the whole amount.
The 2026 rate tables
Ontario Land Transfer Tax
| Portion of purchase price | 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% |
| Over $2,000,000 | 2.5% |
Toronto Municipal Land Transfer Tax
| Portion of purchase price | Rate | Previous rate |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000.01 to $250,000 | 1.0% | 1.0% |
| $250,000.01 to $400,000 | 1.5% | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% | 2.5% |
| $3,000,000.01 to $4,000,000 | 4.40% | 3.5% |
| $4,000,000.01 to $5,000,000 | 5.45% | 4.5% |
| $5,000,000.01 to $10,000,000 | 6.50% | 5.5% |
| $10,000,000.01 to $20,000,000 | 7.55% | 6.5% |
| Over $20,000,000 | 8.60% | 7.5% |
What changed on April 1, 2026
The City left every bracket at or below $3 million untouched and raised the five luxury tiers above it by roughly a point each. If you are buying below $3 million — which is the large majority of West Toronto transactions — nothing about your bill has changed.
Above $3 million the change is meaningful and it compounds as the price rises. On a $3.5 million house the increase is $4,500. On a $5 million house it is $18,500. On genuinely large purchases it runs well into six figures.
A note on how this shows up in negotiation. Buyers at this level price the tax into what they are willing to pay. In the months either side of a change like this, expect it to be raised at the table — and expect it to be raised more forcefully than the arithmetic strictly justifies. It is worth knowing the real number before that conversation starts.
What that means at real prices
Combined provincial and municipal tax on a Toronto purchase, before any first-time buyer rebate:
| Purchase price | Ontario LTT | Toronto MLTT | Combined |
|---|---|---|---|
| $700,000 | $10,475 | $10,475 | $20,950 |
| $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 |
| $2,500,000 | $48,975 | $48,975 | $97,950 |
| $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 |
Two things stand out. First, at $1.5 million the tax is roughly equivalent to a year of private school tuition — and it has to be liquid on closing day. Second, above $3 million the municipal side pulls sharply away from the provincial side, which is exactly what the April change was designed to do.
You can run your own number on our buyer tools calculator, which uses the current 2026 brackets on both sides.
First-time buyer rebates
Both governments offer a rebate to eligible first-time buyers, and in Toronto you can claim both:
- Ontario — up to $4,000, which fully covers the provincial tax on a purchase of roughly $368,000 or less.
- Toronto — up to $4,475, which fully covers the municipal tax on the first $400,000 of the price.
- Combined maximum: $8,475.
On a $900,000 first purchase in Toronto, that takes the bill from $28,950 to $20,475. Real money, but note what it doesn't do: at typical Toronto entry prices the rebate covers well under a third of the tax.
To qualify you generally must be at least 18, have never owned a home or an interest in one anywhere in the world, be a Canadian citizen or permanent resident, and occupy the property as your principal residence within nine months of closing. If your spouse has owned a home while you were spouses, that can disqualify you. Your lawyer normally claims the rebates at registration so the amount is simply netted off on closing rather than refunded later.
The most common mistake we see: buyers assume "first-time" means first time in Canada. It doesn't. Prior ownership anywhere in the world counts, and so does prior ownership of an interest in a home — including one you inherited. Flag it with your lawyer early rather than discovering it on closing.
Non-resident buyers
Ontario's Non-Resident Speculation Tax applies province-wide, on top of both land transfer taxes, to purchases of residential property by foreign nationals, foreign corporations and taxable trustees. It is a substantial additional charge, there are narrow exemptions and rebates, and the federal restrictions on foreign purchases have also moved more than once in recent years.
If this could apply to you, the rules are specific enough that it needs a real estate lawyer before you write an offer, not after. We can point you to one.
Five practical things to know
- It cannot be added to your mortgage. Land transfer tax is paid in cash on closing through your lawyer. Lenders generally want to see closing funds — often estimated at around 1.5% of the purchase price — over and above your down payment.
- New builds are calculated on the price before HST. On a newly built home, land transfer tax applies to the consideration net of HST, which is not the number on the sticker.
- Transfers between spouses and certain family transfers may be exempt — for nominal consideration, where no mortgage is assumed. Certified copies and the right paperwork matter here.
- The MLTT applies to the City of Toronto only. Mississauga, Vaughan, Markham and the rest of the GTA pay the provincial tax alone. On a $1.5 million purchase that is a $26,475 difference — worth knowing if you're weighing Mimico against Port Credit.
- Budget for it from the first conversation. It belongs in your affordability maths alongside the down payment, not as an afterthought when the offer is accepted.
Common questions
How much is land transfer tax on a $1,000,000 home in Toronto?
$32,950 in total — $16,475 to the Province and $16,475 to the City. An eligible first-time buyer would pay $24,475 after claiming both rebates.
Who pays land transfer tax, the buyer or the seller?
The buyer, always, in Ontario. It's due in full on closing and paid through your lawyer at registration. Sellers have their own set of costs — we cover those in what it actually costs to sell a house in Toronto.
What is the maximum first-time buyer rebate in Toronto?
$8,475 — up to $4,000 from Ontario and up to $4,475 from the City. To qualify you must generally be 18 or older, never have owned a home anywhere in the world, be a Canadian citizen or permanent resident, and move in within nine months of closing.
Did Toronto raise land transfer tax in 2026?
Yes, effective April 1, 2026, but only on the portion of a purchase price above $3 million. The top five marginal tiers rose by roughly one percentage point each. Everything at or below $3 million is unchanged.
Can I avoid the Toronto municipal land transfer tax?
Only by buying outside the City of Toronto boundary, or by qualifying for a specific statutory exemption — certain transfers between spouses or family members for nominal consideration, for example. There is no planning technique that removes it from an ordinary arm's-length purchase inside the city.
Is land transfer tax charged on the deposit or the full price?
On the full purchase price — the total consideration for the property — not on the deposit or on the mortgage amount. For new construction, it's calculated on the price net of HST.
Rates and rebate rules current as of August 2026 and reviewed against provincial and municipal sources. We're real estate advisors, not lawyers or accountants — confirm the figures that apply to your specific transaction with your real estate lawyer before you close.
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