Toronto Land Transfer Tax: Why You Pay It Twice

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The short version

Toronto is the only city in Ontario with a municipal land transfer tax. It has applied since February 1, 2008, under the City of Toronto Act, 2006, on top of the provincial tax — and the two are calculated separately and added together at closing. The city boundary matters: homes in Etobicoke, Scarborough and North York are inside Toronto and pay both taxes, while Mississauga, Brampton, Vaughan and Markham pay only the provincial tax.

How the brackets work

Both taxes use marginal brackets: each slice of the price is taxed at its own rate. You never pay the top rate on the whole price. Ontario's provincial brackets for a home with one or two single-family residences are:

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

Toronto's MLTT mirrors those brackets exactly up to $2,000,000, then adds a 2.5% band to $3,000,000. That is why, for most homes, the Toronto bill is exactly double the provincial bill. Worked example for a $1,000,000 home: $275 on the first $55,000, plus $1,950, plus $2,250, plus $12,000 on the remaining $600,000 at 2.0% — $16,475 per tax, $32,950 combined.

What you actually pay at common prices

Each figure is the provincial tax plus an equal MLTT, before rebates. A first-time buyer who qualifies for both rebates subtracts $8,475: a $750,000 Toronto purchase drops from $22,950 to $14,475, and a $1,000,000 purchase drops from $32,950 to $24,475. Outside Toronto, the same first-time buyer subtracts only the $4,000 provincial rebate — $12,475 on a $1,000,000 home.

One more closing cost to budget: Toronto charges an MLTT administration fee of $102.56 plus HST per transaction. And the tax itself is due in cash at closing, through your lawyer — it cannot be added to your mortgage.

The 2026 luxury twist above $3,000,000

Since April 1, 2026, Toronto's MLTT diverges from the provincial tax on high-value homes with one or two single-family residences. The provincial rate stays at 2.5% above $2,000,000, but Toronto charges:

• 4.40% on $3,000,000 to $4,000,000
• 5.45% on $4,000,000 to $5,000,000
• 6.50% on $5,000,000 to $10,000,000
• 7.55% on $10,000,000 to $20,000,000
• 8.60% above $20,000,000

The gap gets large fast. On a $4,000,000 Toronto home, the provincial tax is $86,475 but the MLTT is $105,475 — a combined $191,950, not a clean double. On a $5,000,000 home the combined bill is $271,450 ($111,475 provincial plus $159,975 municipal). If you are buying above $3,000,000, get your lawyer to run both schedules before you firm up the offer.

First-time buyer rebates: up to $8,475 back

Two separate rebates stack for eligible Toronto buyers:

• Ontario: up to $4,000. It covers the full provincial tax on a home up to $368,333. Claim it at registration through your lawyer, or apply to the Ministry of Finance within 18 months.
• Toronto: up to $4,475. It covers the full MLTT on a home up to $400,000. It applies to newly built and resale homes, but not to commercial, industrial or multi-residential properties.

To qualify for either, you must be at least 18, a Canadian citizen or permanent resident, have never owned a home or an interest in a home anywhere in the world, and occupy the home as your principal residence within nine months. The spouse rule is the trap: if your spouse owned a home while being your spouse, neither of you qualifies. An overseas property you once owned counts. And if only one co-buyer qualifies, that buyer's rebate is proportionate to their share — so tell your lawyer about every co-buyer before closing, not after.

What the double tax is not

• It is not a Toronto-only provincial surcharge. The two taxes are separate levies, collected together at closing.
• It is not the Non-Resident Speculation Tax. Ontario's 25% NRST (since October 25, 2022) and Toronto's 10% municipal NRST apply to foreign buyers on top of land transfer tax — a different charge with its own rules.
• It is not avoidable by buying just outside the line. The boundary is the legal City of Toronto limit. A home's mailing address saying "Toronto" does not decide it; the property's location does.

Bottom line: budget the double tax before you fall in love with a Toronto home. On a $1,000,000 purchase, $32,950 in land transfer tax — or $24,475 as a qualifying first-time buyer — is cash you need on closing day, above your down payment.

Sources

• City of Toronto — MLTT rates and fees (official, incl. April 1, 2026 luxury rates and $102.56 + HST fee)
• City of Toronto — MLTT first-time home buyer rebate up to $4,475 (official)
• Ontario Ministry of Finance — Calculating land transfer tax (official brackets and 25% NRST)
• Ontario Ministry of Finance — Land transfer tax refunds for first-time homebuyers (official, up to $4,000)

Educational content only — not financial advice. Figures are estimates; confirm your own situation with the CRA or a licensed financial advisor. See our Disclaimer.