A $1,000,000 home in Toronto carries $16,475 of Ontario land transfer tax and another $16,475 of Toronto municipal tax, $32,950 in total. Rebates for a first-time buyer cut the bill to $24,475. Toronto is the only city in Ontario with a land transfer tax of its own.
What the MLTT is
The municipal land transfer tax, or MLTT, is a second tax on home purchases inside the city. It is paid at closing, next to the provincial tax. It began in 2008 and uses nearly the same rates as Ontario’s tax at lower prices.
How the rates work
Tax is charged in bands. The first $55,000 is taxed at 0.5%, the slice up to $250,000 at 1%, up to $400,000 at 1.5% and up to $2 million at 2%. Higher bands apply above $2 million. The calculator does the maths.
For $1,000,000 the pieces are $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $12,000 on the last $600,000. They add up to $16,475, and the same sum applies to the city tax. Only the slice inside each band gets that band’s rate. A price just over a band edge adds tax only on the extra dollars.
The first-time buyer rebate
First-time buyers can get back up to $4,000 of provincial tax and up to $4,475 of Toronto tax, so $8,475 at most. Many buyers of homes under about $368,000 pay no tax at all. Tick the box to include the rebate.
Who counts as a first-time buyer
Neither you nor your spouse can have owned a home anywhere in the world before. You must be a Canadian citizen or permanent resident and live in the home as your principal residence. The province and the city apply slightly different rebate rules.
Budgeting the full cost
At $1,000,000 the two taxes together equal 3.3% of the price. Add legal fees and other costs and you need well over $35,000 in cash. Put these into the closing costs calculator before planning the down payment.
Foreign buyers
Foreign buyers pay a 25% Non-Resident Speculation Tax across Ontario, on top of both land transfer taxes. More detail is in the Ontario NRST calculator.
Reading the table and an example
The table lists the provincial tax, the Toronto tax and the total at prices from $500,000 to $2,000,000, following your rebate choice. It shows how the bill grows as the price rises.
Consider a first-time buyer of a $750,000 home in Toronto. Before rebates the land transfer tax is $22,950: $11,475 to the province and $11,475 to the city. The rebates take off $8,475, leaving $14,475. Tick the box in the calculator to see it for your price.
When you pay
The tax is due on closing day. Your lawyer collects it with your other funds and pays it for you, so have the money ready in your account. Buying with someone who is not a first-time buyer? Ask your lawyer how the rebate is shared.
Where to go next
Buying the same home just outside Toronto avoids the municipal tax, which saves $16,475 on a $1,000,000 home. Weigh that against commute time, property tax and price differences, since the home itself often costs less elsewhere and prices vary by area.
See other provinces in the land transfer tax calculator. Plan cash with the down payment calculator. Check the yearly cost of the home in the Toronto property tax calculator.
Frequently asked questions
What is the MLTT?
Toronto's municipal land transfer tax, charged on top of Ontario's tax.
How much is land transfer tax on $1,000,000 in Toronto?
$32,950 in total, with $16,475 from each level.
What is the first-time buyer rebate?
Up to $4,000 provincial and $4,475 Toronto.
Do other Ontario cities have a municipal tax?
No. Toronto is the only one.
When do I pay it?
At closing.
Do foreign buyers pay more?
Yes, they also pay a 25% Non-Resident Speculation Tax.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.