What You Pay in Land Transfer Tax When You Buy in Toronto

The short answer

Toronto land transfer tax is really two taxes. Every buyer in the City of Toronto pays Ontario’s provincial land transfer tax. The City adds its own Municipal Land Transfer Tax (MLTT) on top. The City has charged the MLTT on purchases in Toronto, in addition to the provincial tax, since February 1, 2008.

For most homes the two taxes use the same rate bands, so the total is simply twice the provincial figure. On the TRREB median price for all home types in the City of Toronto in August 2026, $770,000, the combined bill is $23,750.

You can run any price through our Toronto land transfer tax calculator. This guide shows how the numbers are built, what changed above $3,000,000 on April 1, 2026, how the two first-time buyer rebates work and when the money is due. It is general information, so have your real estate lawyer confirm the figure for your own purchase.

The two sets of rates side by side

Both taxes are graduated. Each rate applies only to the slice of the price that falls inside its band, much like income tax brackets. The Ontario rates below apply to agreements signed after November 14, 2016. The City of Toronto rates are those in force from April 1, 2026, for land containing one or two single family residences.

Portion of the price	Ontario rate	City of Toronto MLTT rate
Up to $55,000	0.5%	0.5%
$55,000 to $250,000	1.0%	1.0%
$250,000 to $400,000	1.5%	1.5%
$400,000 to $2,000,000	2.0%	2.0%
$2,000,000 to $3,000,000	2.5%	2.5%
$3,000,000 to $4,000,000	2.5%	4.40%
$4,000,000 to $5,000,000	2.5%	5.45%
$5,000,000 to $10,000,000	2.5%	6.50%
$10,000,000 to $20,000,000	2.5%	7.55%
Over $20,000,000	2.5%	8.60%

Ontario’s 2.5% band applies where the land contains one or two single family residences. For other property types the City’s MLTT tops out at 2.0% on the portion over $400,000.

A quick way to estimate it

The first $400,000 of any price always produces $4,475 of tax under each system. Ontario uses that exact figure in its own worked example. So for a home priced between $400,000 and $2,000,000, each tax equals $4,475 plus 2% of the amount above $400,000. Double it to get the Toronto total.

What changed on April 1, 2026

On December 17, 2025, Toronto City Council passed an amendment introducing graduated MLTT rates for high value residential properties with one or two single family residences. The new rates took effect on April 1, 2026 and apply to the part of a price above $3,000,000.

Here is an illustrative example at a round price of $3,500,000, not a real sale:

1. First $400,000, same under both taxes: $4,475 each
2. $400,000 to $2,000,000 at 2.0%: $32,000 each
3. $2,000,000 to $3,000,000 at 2.5%: $25,000 each
4. Last $500,000: Ontario at 2.5% adds $12,500, while the City at 4.40% adds $22,000
5. Ontario total $73,975, MLTT total $83,475, combined $157,450

On that last $500,000 the municipal tax is $9,500 higher than the provincial tax. The gap widens with each higher tier, so buyers at the top of the market should have the calculation done before they write an offer. Our luxury homes in Toronto guide covers other points that matter in that price range.

Land transfer tax at Toronto median prices

The table uses the median prices TRREB reported for the City of Toronto in August 2026. A median is the middle sale: half sold for more and half for less. The figures assume a buyer who does not qualify for a first-time rebate.

Home type (TRREB, City of Toronto, August 2026)	Median price	Ontario tax	City MLTT	Total
Condo apartment	$550,000	$7,475	$7,475	$14,950
Condo townhouse	$661,650	$9,708	$9,708	$19,416
All home types	$770,000	$11,875	$11,875	$23,750
Freehold townhouse	$962,000	$15,715	$15,715	$31,430
Semi-detached	$981,000	$16,095	$16,095	$32,190
Detached	$1,170,000	$19,875	$19,875	$39,750

The $770,000 example step by step

1. First $55,000 at 0.5%: $275
2. Next $195,000 at 1.0%: $1,950
3. Next $150,000 at 1.5%: $2,250
4. Remaining $370,000 at 2.0%: $7,400
5. Ontario tax: $11,875. City MLTT: $11,875. Total: $23,750

That is about 3.1% of the price in land transfer tax alone. For the rest of the one-time bills, see our guide to closing costs when buying a home in Toronto. Prices by area are in our Toronto market reports.

First-time buyers get two rebates

Ontario and the City run separate programmes with similar rules. A buyer who meets both sets of conditions can claim both.

Programme	Maximum	Effect
Ontario first-time homebuyer refund	$4,000	No provincial tax on the first $368,000 of the price
City of Toronto MLTT first-time purchaser rebate	$4,475	Equal to the MLTT on the first $400,000 of the price

Here is what a first-time buyer who qualifies for both would pay at the August 2026 medians:

Median price	Ontario after refund	MLTT after rebate	First-time buyer total
$550,000	$3,475	$3,000	$6,475
$661,650	$5,708	$5,233	$10,941
$770,000	$7,875	$7,400	$15,275
$962,000	$11,715	$11,240	$22,955
$981,000	$12,095	$11,620	$23,715
$1,170,000	$15,875	$15,400	$31,275

Who qualifies

The core conditions are close to identical for both programmes. Each purchaser claiming must:

• be at least 18 years old
• live in the home as their principal residence within nine months of the transfer
• never have owned a home or an interest in a home anywhere in the world
• have a spouse who did not own a home while married to or partnered with the purchaser
• be a Canadian citizen or permanent resident (or become one within 18 months of the transfer)

The City’s rebate covers new and resale homes but not commercial, industrial or multi-residential property. Ontario reduces its refund in proportion when some purchasers do not qualify, for example when a parent and child buy together. The City’s page does not describe how it treats that situation, so ask your lawyer before closing.

Both rebates can be claimed at registration. If one is missed, the application must be made within 18 months. The City charges a refund fee of $221.22 for rebate requests made after the transfer has been registered. Our first time home buyer guide for Toronto covers the rest of the buying process.

When the tax is paid

Ontario’s tax is payable when the transfer is registered. The City says MLTT payment is due on registration as well. Registration happens on closing day through Teraview, the province’s electronic land registration system. Your lawyer handles it. In practice both taxes come out of the closing funds you provide to your lawyer.

The City also lists an MLTT administration fee of $102.56 plus HST for processing each MLTT transaction. Ask your lawyer how it is shown on your statement.

The Municipal Non-Resident Speculation Tax

Buyers who are not Canadian citizens or permanent residents face an extra municipal charge. Since January 1, 2025, the City of Toronto has applied a 10 per cent Municipal Non-Resident Speculation Tax (MNRST) to foreign buyers of certain residential properties, on top of the MLTT. It covers land with at least one and not more than six single family residences, which includes detached homes, townhouses and condo units.

Key points from the City:

• a foreign buyer is an individual who is not a Canadian citizen or permanent resident, as well as a corporation incorporated outside Canada
• the tax is calculated on the value of the consideration, normally the price paid
• there is no grandfathering for agreements signed before January 1, 2025
• exemptions exist, including for Ontario Immigrant Nominees, protected persons and spouses of citizens or permanent residents buying together

Ontario’s own Non-Resident Speculation Tax, set at 25 per cent since October 25, 2022, applies province wide. A buyer who may be caught by either tax should get legal advice before signing an offer.

Toronto compared with Markham at the same price

Toronto’s MLTT applies to property in the City of Toronto. A Markham purchase is not subject to it, so a Markham buyer at the same price pays the Ontario tax only. The table compares identical prices, before any first-time rebate.

Price	Markham total	Toronto total	Difference
$550,000	$7,475	$14,950	$7,475
$770,000	$11,875	$23,750	$11,875
$1,000,000	$16,475	$32,950	$16,475
$1,170,000	$19,875	$39,750	$19,875
$3,500,000	$73,975	$157,450	$83,475

The difference equals the MLTT itself. Land transfer tax is one line in a larger comparison that includes prices, property tax and commute, which we set out in Toronto vs Markham.

Before you make an offer

1. Estimate both taxes at your target price and add them to your cash budget alongside the down payment.
2. Check every rebate condition for each person going on title, including a spouse.
3. If the price is near or above $3,000,000, confirm the MLTT at the new tiers with your lawyer.
4. If you are downsizing, remember the tax applies to your next purchase even though you are selling a larger home. Our downsizing in Toronto guide explains how to plan both sides.
5. Ask your lawyer for the closing funds figure well ahead of closing day.

Rates and rules in this post reflect the Ontario and City of Toronto pages as we read them in September 2026. Nothing here is legal or tax advice for your situation. If you would like to work through the full cost of a Toronto purchase, contact us.