What is the Toronto land transfer tax?#
Toronto is the only municipality in Ontario that charges its own land transfer tax. Buy inside the city and you pay two taxes on closing: the provincial one every Ontario buyer pays, and the City's Municipal Land Transfer Tax on top. Buy in Mississauga, Vaughan or anywhere else in the province and you pay the provincial tax alone: the Ontario land transfer tax calculator covers that case, and explains who pays, who is exempt, and what the tax is charged on.
Both are marginal taxes. Each slice of the price is charged at its own rate, so a $1,000,000 purchase is not taxed at one percentage. It is the sum of the slices, which is what the calculator above shows.
How much is the Toronto land transfer tax?#
The municipal rate matches the provincial brackets to $2,000,000, then rises: 2.5% to $3,000,000, 4.40% to $4,000,000, 5.45% to $5,000,000, 6.50% to $10,000,000, 7.55% to $20,000,000 and 8.60% above that. On a $1,000,000 home the municipal tax is $16,475, the same again on top of the province's.
| Value of consideration | Marginal rate |
|---|---|
| Up to and including $55,000 | 0.50% |
| Over $55k to $250k | 1.0% |
| Over $250k to $400k | 1.50% |
| Over $400k to $2M | 2.0% |
| Over $2M to $3M | 2.50% |
| Over $3M to $4M | 4.40% |
| Over $4M to $5M | 5.45% |
| Over $5M to $10M | 6.50% |
| Over $10M to $20M | 7.55% |
| Over $20M | 8.60% |
Those top rates took effect on 1 April 2026. Like the provincial 2.5% band, they reach only a property with one or two dwellings on it: a house, a condo, a semi, a townhouse or a duplex. Anything else is capped at 2.0%.
How much is land transfer tax at different price points?#
Below is what a Canadian resident pays on a house, condo or duplex, with no first-time buyer rebate. This is the ordinary repeat purchase.
The gap between the two lines is the municipal tax. Up to $3,000,000 it uses the same brackets as the provincial tax, so a Toronto buyer pays exactly double: $12,950 against $6,475 on a $500,000 home, $122,950 against $61,475 on a $3,000,000 one.
Above $3,000,000 the Toronto line turns upward and the two stop tracking. The City's own rates take over at 4.4%, then 5.45%, while the province stays at 2.5%, so a $5,000,000 purchase costs $271,450 in Toronto against $111,475 anywhere else. That is 2.44 times as much, not twice.
Tax also climbs faster than price does. On a $500,000 home it is 2.59% of the price; on a $5,000,000 one, 5.43%.
| Purchase price | Elsewhere in Ontario | In Toronto | Share of price |
|---|---|---|---|
| $500,000 | $6,475 | $12,950 | 2.59% |
| $750,000 | $11,475 | $22,950 | 3.06% |
| $1,000,000 | $16,475 | $32,950 | 3.29% |
| $1,250,000 | $21,475 | $42,950 | 3.44% |
| $1,500,000 | $26,475 | $52,950 | 3.53% |
| $1,750,000 | $31,475 | $62,950 | 3.60% |
| $2,000,000 | $36,475 | $72,950 | 3.65% |
| $2,250,000 | $42,725 | $85,450 | 3.80% |
| $2,500,000 | $48,975 | $97,950 | 3.92% |
| $2,750,000 | $55,225 | $110,450 | 4.02% |
| $3,000,000 | $61,475 | $122,950 | 4.10% |
| $3,250,000 | $67,725 | $140,200 | 4.31% |
| $3,500,000 | $73,975 | $157,450 | 4.50% |
| $3,750,000 | $80,225 | $174,700 | 4.66% |
| $4,000,000 | $86,475 | $191,950 | 4.80% |
| $4,250,000 | $92,725 | $211,825 | 4.98% |
| $4,500,000 | $98,975 | $231,700 | 5.15% |
| $4,750,000 | $105,225 | $251,575 | 5.30% |
| $5,000,000 | $111,475 | $271,450 | 5.43% |
How much is the first-time buyer rebate in Toronto?#
Up to $4,475 from the City, and up to $4,000 from the province: $8,475 in total. The Toronto rebate cancels the municipal tax completely on a purchase up to $400,000; the provincial one cancels the provincial tax up to about $368,333. Above those prices you receive the maximum and pay the rest.
The City applies the same eligibility test as the province, so qualifying for one means qualifying for both. The conditions are listed on the Ontario land transfer tax calculator.
Both rebates shrink when a co-purchaser does not qualify. The Ontario land transfer tax calculator explains how the share is worked out; tick "first-time home buyer" above and the field appears here too.
How do I avoid the land transfer tax in Toronto?#
You cannot avoid it on an ordinary purchase, and any scheme that claims otherwise is worth treating with suspicion. What you can legitimately do is claim the rebates you qualify for, and buy outside the City of Toronto, where the municipal tax does not apply at all. The same $1,000,000 home costs $16,475 less in tax in Mississauga than in Toronto.
What else is charged on closing?#
The City charges a $102.56 administration fee plus HST on every Toronto transaction, and $221.22 to process a rebate claimed after registration rather than at it. Neither is a tax, so neither is inside the totals above.
Foreign buyers pay far more: a 25% provincial Non-Resident Speculation Tax across Ontario, plus a 10% Municipal Non-Resident Speculation Tax inside Toronto. On a $1,000,000 purchase that is a further $350,000. Until January 1, 2027, federal law also bars foreign nationals from buying a Toronto home of up to three units, with limited exceptions such as some work-permit holders and students.
The tax is the largest thing you pay on closing day, but it is not the only one. Head to the closing costs calculator for a more comprehensive overview of all closing costs, including the lawyer's fee, title insurance, adjustments and the sales tax on mortgage insurance.