Toronto Land Transfer Tax: What Buyers Pay in 2026

How much land transfer tax do buyers pay in Toronto?

If you buy a home in the City of Toronto, you pay two land transfer taxes on closing day: the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. Both use the same rates on homes up to $3 million, so your total is roughly double the provincial amount — about $32,950 on a $1,000,000 home. Eligible first-time buyers can recover up to $4,000 from the province and $4,475 from the City. Buy in Vaughan, Markham, Richmond Hill, or Mississauga, and only the provincial tax applies.

Land transfer tax is the closing cost that catches the most Toronto buyers off guard. It's usually the biggest single item on your lawyer's closing statement, it can't be added to your mortgage, and it's due before you get the keys. Here's how it's calculated, what it costs at real Toronto price points, and how to plan for it before you write an offer.

How the two taxes add up

Both taxes work in brackets. Each rate applies only to the slice of the price that falls inside that bracket — not to the whole price. For a typical home, the brackets are:

• 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 on homes with one or two single-family residences (a condo above $2 million stays at 2.0%)

Ontario charges that tax on every purchase in the province. Inside the City of Toronto, the City charges its own Municipal Land Transfer Tax on top, using the same rates. Both are paid by the buyer — never the seller. Here's what that looks like at common Toronto price points:

Purchase price	Ontario tax	Toronto tax	Combined	Combined after first-time buyer rebates
$600,000	$8,475	$8,475	$16,950	$8,475
$800,000	$12,475	$12,475	$24,950	$16,475
$1,000,000	$16,475	$16,475	$32,950	$24,475
$1,500,000	$26,475	$26,475	$52,950	$44,475
$2,500,000 (detached or semi)	$48,975	$48,975	$97,950	$89,475

These are my own bracket calculations, so treat them as planning numbers and ask your real estate lawyer for an exact figure before you firm up. Your lawyer will also add a small municipal administration fee on Toronto purchases.

Every $10,000 you negotiate off the price saves about $400 in combined land transfer tax in Toronto on a purchase above $400,000. That's a small but real reason to negotiate, and it's one more way your offer price affects your closing day cash.

What's happening in the market right now

The October numbers from the Toronto Regional Real Estate Board (TRREB) show buyers and sellers both holding back. Sales across Toronto and surrounding areas came in at 5,603, down 7.9% from a year earlier. The average selling price was $1,024,108, down 2.7%, and the MLS Home Price Index composite benchmark was down 4.3%. TRREB's Jason Mercer said buyers have "more negotiating power" right now.

At that average price, combined land transfer tax in Toronto works out to roughly $33,900. If you're comparing a Toronto home to a similar one in the 905, that tax is part of the real cost difference — we'll get to it below.

One 2026 change you may have heard about

On April 1, 2026, Toronto added higher Municipal Land Transfer Tax brackets for single-family homes above $3 million, starting at 4.40% on the slice between $3 million and $4 million and rising from there. If you're shopping at or below $3 million, nothing about your calculation changes.

First-time buyer rebates: who qualifies

Two rebates can offset part of the bill — up to $4,000 from Ontario and up to $4,475 from the City of Toronto, for a combined maximum of $8,475. Because they're flat caps, they help most at lower prices: at $600,000 they cut your land transfer tax in half, while at $1,500,000 they trim about 16%.

For the Ontario refund, you generally need to:

• Be at least 18 years old
• Be a Canadian citizen or permanent resident (if you aren't yet at closing, you have 18 months after registration to qualify)
• Occupy the home as your principal residence within nine months of closing
• Never have owned a home — or an interest in one — anywhere in the world, and your spouse can't have owned one while married to you

That last point is where people relocating to Toronto often get caught. If you've owned a home in another province or another country, you don't qualify, even if it's your first Toronto purchase. A co-purchaser who isn't a first-time buyer also reduces the refund proportionally.

Most buyers claim the rebate at closing: your lawyer enters it when registering the transfer, so it reduces the amount you pay that day. If it isn't claimed at registration, you can apply to the Ministry of Finance within 18 months — but no interest is paid on the refund, so claiming at closing is better. Your lawyer will confirm your eligibility for both the Ontario and Toronto rebates.

If you're not a Canadian citizen or permanent resident, Ontario's Non-Resident Speculation Tax of 25% may also apply on top of land transfer tax, with some exemptions. Raise that with your lawyer before you make an offer, not after.

The rest of your closing budget

Land transfer tax is the biggest line, but it isn't the only one. Plan for these on top of your down payment:

• Legal fees: from about $1,500 and up, plus HST and disbursements such as the title search
• Title insurance: usually a few hundred dollars, and your lawyer will include it in the quote
• Home inspection: roughly $300 to $500, and I'd rarely skip it
• Appraisal: about $300 to $500 if your lender requires one
• Condo status certificate: around $100 or more, and the review itself matters more than the fee
• Statement of adjustments: you reimburse the seller for prepaid property tax, utilities, or condo fees
• Moving and immediate repairs: budget these separately

Ontario real estate sources commonly estimate total buyer closing costs at roughly 1.5% to 4% of the purchase price. In Toronto, land transfer tax is the reason you land toward the higher end. Many lenders also expect you to show closing-cost funds separately from your down payment, so ask yours early.

On a new build, add HST, development charges, and builder adjustments to your list. Builders often don't send the final numbers until close to closing, so ask for estimates when you sign.

Buying outside Toronto?

Vaughan, Markham, Richmond Hill, and Mississauga don't have a municipal land transfer tax — only the Ontario tax applies. On a $1,000,000 home, that's $16,475 instead of $32,950. That's a $16,475 difference in cash at closing. I'd still treat it as one input rather than the deciding factor, because property taxes, commute, and the home itself shape what you'll pay and enjoy for years.

Selling and buying in the same move?

Land transfer tax applies to your next purchase too, and the first-time buyer rebate won't, because you'll have owned a home. If you're weighing timing, my posts on whether to sell before buying another home in Toronto and how to time closing dates in Ontario walk through the logistics, and what sellers pay at closing in Toronto covers the other side of the table. If this is your first purchase, these first-time buyer tips help with the budgeting side.

Your exact number depends on your price, your property type, and whether you qualify for the rebates. That's the part I walk buyers through before they write an offer.

Frequently Asked Questions

Do I pay both land transfer taxes if I buy a condo in Toronto?

Yes. A condo inside the City of Toronto is charged both the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. The only difference is at the top end: the 2.5% bracket above $2 million applies to homes with one or two single-family residences, so a condo stays at 2.0%.

Can I add land transfer tax to my mortgage?

No. Land transfer tax is due on closing day and is paid in cash through your real estate lawyer. Plan for it separately from your down payment.

Does the seller pay any land transfer tax?

No. In Ontario, land transfer tax is paid by the buyer. Sellers pay realtor commission plus HST on that commission, legal fees, and any mortgage discharge costs.

When do I get the first-time buyer rebate?

Usually on closing day. Your lawyer claims the rebate when the transfer is registered, which lowers what you pay at that moment. If it isn't claimed then, you can apply to the Ministry of Finance within 18 months after registration, but no interest is paid.

Did Toronto's land transfer tax change in 2026?

Yes, but only for higher-priced homes. As of April 1, 2026, single-family homes above $3 million face higher Municipal Land Transfer Tax brackets, starting at 4.40% on the portion between $3 million and $4 million. Homes at or below $3 million are calculated the same way as before.

Before you make an offer

Land transfer tax in Toronto is predictable once you know the brackets: two taxes on the same rates, a rebate that only some first-time buyers can claim, and a closing budget that runs well beyond the down payment. Running the numbers before you write an offer means no surprise on closing day, and a clearer picture of what you can comfortably spend. This is general information, not legal or tax advice, and your real estate lawyer should confirm your final figures.

If you're thinking through this for your own situation, I'm here for you. Reach out anytime and I'll walk you through the numbers.

About Khoa Le

Khoa Le is a real estate broker serving Toronto and surrounding areas. She helps first-time buyers, first-time sellers, and people relocating to Toronto navigate every step of the process with clarity and confidence. Connect with Khoa at khoa@realimpactgroup.com or 647-271-5461.

Sources: Ontario — Land Transfer Tax · Ontario — Land Transfer Tax Refunds for First-Time Homebuyers · City of Toronto — Municipal Land Transfer Tax rates and fees · CP24 — GTA home sales fall nearly 8% in October (TRREB) · Wahi — Typical closing costs in Ontario