Buying a home in Toronto means paying land transfer tax twice, once to Ontario and once to the City. On a $1,000,000 home that is $16,475 to the province and $16,475 to Toronto, so $32,950 in total before any rebate. Outside Toronto only the provincial half applies. This guide shows the rates, the rebates, the extra tax on foreign buyers, when the money is due and how the numbers work at three different prices.
What land transfer tax is
Land transfer tax is a one-time tax paid when ownership of a property moves to a new owner. The buyer pays it, and it is calculated on the value of the consideration, which in most sales is the purchase price. It has nothing to do with the yearly property tax bill that arrives from the City.
Two separate taxes can apply. The Ontario land transfer tax applies to every purchase in the province. The Toronto municipal land transfer tax applies only when the property sits inside the City of Toronto, and it is charged on top of the provincial one. Buyers often find out about the second tax late, because many online examples show only the provincial figure.
You can test any price with the land transfer tax calculator, which uses the same rates described below.
Ontario rate bands
Ontario charges the tax in slices, like income tax. Each rate applies only to the part of the price inside that slice. For a home with one or two single-family residences the slices are these.
- 0.5% on the first $55,000
- 1% on the part from $55,000 to $250,000
- 1.5% on the part from $250,000 to $400,000
- 2% on the part from $400,000 to $2,000,000
- 2.5% on the part above $2,000,000
The 2.5% band is reserved for homes with one or two single-family residences. Other property types, such as apartment buildings, commercial land and most vacant land, stop at 2% for everything above $400,000. The province defines a single-family residence as a structure or part of a structure designed as the home of a family, and that includes cottages and cabins. Zoning does not matter. Farmland that qualifies as farm property is treated differently.
These bands have been in place since January 1, 2017, so they are not new. The province’s current rates page still shows them.
The Toronto municipal tax
The City of Toronto uses the same five bands up to $2,000,000. Above that, Toronto adds higher bands that Ontario does not have. They took effect on April 1, 2026, and apply to homes with one or two single-family residences.
- 2.5% on the part from $2,000,000 to $3,000,000
- 4.4% on the part from $3,000,000 to $4,000,000
- 5.45% on the part from $4,000,000 to $5,000,000
- 6.5% on the part from $5,000,000 to $10,000,000
- 7.55% on the part from $10,000,000 to $20,000,000
- 8.6% on the part above $20,000,000
Every other type of property in Toronto follows the plain schedule, with 2% on everything above $400,000. The City’s fee schedule also lists an administration fee of $102.56 plus HST. Anyone buying below roughly $2,000,000 will see identical provincial and municipal amounts. The gap only opens at the top of the market.
The Toronto MLTT calculator isolates the municipal part if you want to see it on its own.
First-time buyer rebates
Two rebates exist, and a first-time buyer in Toronto can claim both. The province refunds up to $4,000. Toronto refunds up to $4,475. Together that is $8,475.
The provincial rebate wipes out the tax on the first $368,000 of the price. Above that, the refund stays at its $4,000 cap, so it is worth the same amount at $500,000 as at $2,000,000. Toronto’s rebate is the same idea with a higher cap, and it fully covers the municipal tax on a purchase up to $400,000.
Conditions are close to identical for both.
- Each buyer must be at least 18 years old.
- The buyer has never owned a home or an interest in one anywhere in the world.
- Within nine months of the transfer, the buyer must move in and use the home as a principal residence.
- A spouse, if there is one, has never owned a home anywhere while married to the buyer.
- The buyer is a Canadian citizen or permanent resident.
Some points deserve a closer look. If either spouse owned a home during the marriage, neither can claim, even if the other never owned one. A spouse who owned a home before the marriage does not block the claim. Toronto adds that a buyer who becomes a citizen or permanent resident within 18 months of the transfer may still apply. Toronto’s rebate covers newly built homes and resales.
How the rebates are claimed
Most buyers never fill in a form. The real estate lawyer claims both rebates at registration, and the amount is deducted from what you owe at closing. That is why the closing statement shows a lower tax figure than the plain calculation. Tell the lawyer early whether you have ever owned property anywhere, because the claim depends on it.
Missed at closing? Both levels accept claims afterwards. Ontario allows 18 months after the date of registration and accepts applications online with the deed, the purchase agreement and proof of moving in. Toronto also allows 18 months from the transfer and takes applications directly from its Revenue Services division. Keep the registered deed and the closing papers in a safe place for this reason.
Budget for the tax first and treat the rebate as a reduction, not a source of funds. The closing costs calculator shows how the tax sits beside legal fees and other costs on closing day.
Non-resident speculation tax
Ontario charges a Non-Resident Speculation Tax of 25% on the price of residential property bought by foreign nationals, foreign corporations and taxable trustees. The rate has applied across the whole province since October 25, 2022. It sits on top of the ordinary land transfer tax. Permanent residents who have not yet obtained Canadian status can also be caught.
It covers property with one to six single-family residences, including detached houses, townhouses and condominiums. Since March 2024 it also reaches parking and storage units in condominiums. Apartment buildings of seven or more units, farmland and commercial or industrial property are outside it. When several people buy together and one of them is a foreign entity, the tax applies to the whole value, not just that person’s share.
A rebate exists for a foreign national who becomes a permanent resident within four years of the purchase and lives in the home. Refund requests can be made online through the province’s tax portal. Use the Ontario NRST calculator to see the amount for a given price.
Toronto’s own foreign buyer tax
Toronto introduced a Municipal Non-Resident Speculation Tax of 10% on January 1, 2025. It applies to foreign buyers of certain residential properties in the City. Toronto buyers who are foreign nationals therefore face 25% from Ontario and 10% from the City, so 35% in total, plus the two ordinary land transfer taxes.
The City offers a rebate as well. A foreign national who becomes a permanent resident within four years of the purchase may qualify, provided the home was their principal residence and they own it alone or only with a spouse. The City must receive that application within 90 days of the date the person becomes a permanent resident. That deadline is short, so it is worth marking in a calendar the day status is granted.
When the tax is due
The tax is payable when the transfer is registered on title, which for most buyers is the closing date. The lawyer collects it from you with the closing funds and remits it. Plan to have the money ready on closing day, and ask the lender and the lawyer how the tax is to be paid.
For the speculation taxes, the tax is due at registration too. Interest on unpaid speculation tax accumulates daily. A buyer who thinks a foreign buyer tax may apply should raise it with the lawyer well before closing.
The down payment calculator and the mortgage calculator help plan the rest of the cash needed on that date.
Three worked examples
The figures below come from the same engine as the site’s land transfer tax calculator, for a home with one or two single-family residences inside Toronto.
Example one is a $600,000 condo. Ontario tax is $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $4,000 on the last $200,000, so $8,475. Toronto charges the same, $8,475. Without rebates the total is $16,950. A first-time buyer claims $4,000 from Ontario and $4,475 from Toronto, a total of $8,475, and pays $8,475. Buying the same home outside Toronto would cost $8,475 without rebate and $4,475 with the provincial rebate.
Example two is a $1,500,000 house. Ontario charges $26,475 and Toronto charges $26,475, for $52,950. A first-time buyer gets the same $8,475 back, since both rebates are capped, so the net cost is $44,475. The rebate matters less and less as the price climbs.
Example three is a $3,500,000 house. Ontario charges $73,975. Toronto reaches into its higher bands and charges $83,475, so the two are no longer equal. The total is $157,450. A first-time buyer at this price would still see $8,475 removed, leaving $148,975.
For a quick check on a price of your own, open the land transfer tax calculator and tick the first-time buyer option.
What the tax does not cover
Land transfer tax is one cost among several. It does not include legal fees, title insurance, the home inspection, the appraisal or a lender’s fees. It does not include the adjustments the lawyer makes for property tax and utilities already paid by the seller, and it does not include moving costs. The closing costs calculator covers those extras.
It is also not the yearly bill. Once you own the home, the City sends a property tax bill, and the property tax calculator gives an estimate. Some empty homes owe the Vacant Home Tax as well.
The calculator gives an estimate, not tax advice. Unusual transfers can follow special rules, so the lawyer confirms the final amount.
Common mistakes
The first mistake is forgetting the municipal tax. A buyer who budgets from a provincial figure alone will be short by tens of thousands of dollars on a Toronto home. Second comes the belief that the rebate is automatic. It is a claim, and it depends on answers that must be true.
Another frequent slip is the nine-month rule. A buyer who plans to rent the home out, or buys as an investment while living elsewhere, does not qualify. A related error involves spouses. One spouse may never have owned a home, but if the other owned during the marriage, neither can claim.
Some buyers forget that the tax is due at closing, so the cash has to be ready. Others overlook the deadline for late claims, or the 90 day window for the Toronto foreign buyer rebate. Finally, people look at rate tables from years ago. Toronto raised its top bands on April 1, 2026, and older articles do not show them.
More tools for buyers sit in the real estate calculators and the Ontario housing calculators. For related reading, browse the guides section.
Common questions
Do I pay land transfer tax twice in Toronto?
Sources
- Ontario, calculating land transfer tax
- Ontario, land transfer tax refunds for first-time homebuyers
- Ontario, Non-Resident Speculation Tax
- City of Toronto, MLTT rates and fees
- City of Toronto, MLTT and MNRST rebate opportunities
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.