Since April 1, 2026, Toronto charges higher municipal land transfer tax on homes above $3,000,000. The rate on the slice from $3 million to $4 million rose from 3.5% to 4.40%, and the top rate above $20 million rose from 7.5% to 8.60%. Nothing changed below $3,000,000, and there is no cliff at that point, because each rate only applies to the slice of the price inside its band.
What follows is what changed, what it costs at $3.5 million, $5 million, $8 million and $25 million, and which other taxes and choices matter for a buyer at that level. Every figure comes from the City of Toronto’s rate tables, and the arithmetic is shown so you can check it.
What the city changed
On December 17, 2025, City Council passed an amendment introducing graduated Municipal Land Transfer Tax rates for high-value residential properties. They apply to homes that hold one or two single-family residences, and they took effect on April 1, 2026.
The lower bands stayed as they were. The first $55,000 is taxed at 0.5%, the next $195,000 at 1%, the next $150,000 at 1.5%, the slice up to $2,000,000 at 2% and the slice up to $3,000,000 at 2.5%. Above that, each band moved up by roughly one percentage point.
Other property types weren’t touched. A property that isn’t one or two single-family residences keeps a structure that stops at 2% above $400,000. If your purchase is a condo unit, a multi-unit building or something mixed, ask the lawyer which table applies, because the answer decides whether the new bands are relevant at all.
Old rates and new rates side by side
This table shows the rate on each slice before and after the change. The previous rates applied from January 1, 2024 to March 31, 2026.
| Slice of the price | Until March 31, 2026 | From April 1, 2026 |
|---|---|---|
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| $3,000,000 to $4,000,000 | 3.5% | 4.40% |
| $4,000,000 to $5,000,000 | 4.5% | 5.45% |
| $5,000,000 to $10,000,000 | 5.5% | 6.50% |
| $10,000,000 to $20,000,000 | 6.5% | 7.55% |
| Above $20,000,000 | 7.5% | 8.60% |
The increase is 0.90 points on the first luxury band and rises to 1.10 points at the top. On a full slice the added tax is $9,000 for the $3 to $4 million band, $9,500 for the next, $50,000 for the $5 to $10 million band and $105,000 for the $10 to $20 million band.
Below $2,000,000 there is a standard rate of 2% on the part of the price above $400,000. That part of the table is the same as it was before, and the Toronto MLTT calculator uses the full set of bands.
A $3,500,000 detached home
Start with the tax up to $3,000,000, since it hasn’t changed. The first $400,000 costs $4,475. The slice to $2,000,000 is $1,600,000 at 2%, or $32,000. Then $1,000,000 in the 2.5% slice, up to $3,000,000, adds $25,000. Together that reaches $61,475.
Then the last $500,000. Under the old table that was taxed at 3.5%, or $17,500, for a total of $78,975. At the new 4.40% it is $22,000, for a total of $83,475. The extra cost is $4,500.
Ontario’s tax is due as well. It is $36,475 on the first $2,000,000 and 2.5% of the remaining $1,500,000, or $37,500. That comes to $73,975. Together, the two taxes on a $3,500,000 house are now $157,450, up from $152,950.
To put the $4,500 in proportion, it is about 0.13% of the price. It matters more to a buyer who is short of cash on closing day than to one who isn’t, but it isn’t the sort of figure that should decide whether to buy.
A $5,000,000 home
Above $3,000,000 the tax on a $5,000,000 purchase is built from two slices. The $3 to $4 million slice at 4.40% is $44,000, and the $4 to $5 million slice at 5.45% is $54,500. Add the $61,475 below $3,000,000 and the total is $159,975.
The same purchase under the old table cost $141,475 (that is $61,475 plus $35,000 plus $45,000). The difference is $18,500.
For a buyer with foreign ownership, the 25% Non-Resident Speculation Tax adds another $1,250,000 on a $5,000,000 price. The city tax and the provincial tax are on top of that, so the comparison of a few thousand dollars in the MLTT is small against the NRST.
An $8,000,000 home and a $25,000,000 estate
For $8,000,000 the tax is $159,975 up to $5,000,000, plus 6.50% on the remaining $3,000,000, which is $195,000. The total is $354,975. The old table gave $306,475, so the increase is $48,500.
Take $25,000,000. To $5,000,000 the tax is $159,975. The $5 to $10 million slice at 6.50% adds $325,000. Next, $10 to $20 million at 7.55% adds $755,000. The last $5,000,000 at 8.60% adds $430,000, and the total is $1,669,975. Under the old table it would have been $1,441,475, an increase of $228,500.
These prices are unusual, and a small share of Toronto sales reach them. We haven’t found an official count, so treat any claim about what percentage of buyers is affected with suspicion. The rules are the same for a $3,000,001 purchase as for a $25 million one, only the slices that apply are fewer.
Comparing the old and new tax at five prices
| Price | Old city tax | New city tax | Difference |
|---|---|---|---|
| $3,500,000 | $78,975 | $83,475 | $4,500 |
| $5,000,000 | $141,475 | $159,975 | $18,500 |
| $8,000,000 | $306,475 | $354,975 | $48,500 |
| $10,000,000 | $416,475 | $484,975 | $68,500 |
| $25,000,000 | $1,441,475 | $1,669,975 | $228,500 |
The rise in tax grows faster than the price. A price 43% higher, from $3.5 million to $5 million, raises the extra tax more than fourfold. That’s a result of the higher rate applying to more slices at once.
Outside the city boundary
Toronto’s tax applies to property inside the City of Toronto. A home north of Steeles Avenue in Markham or Vaughan, or one in Mississauga, doesn’t pay it, and the buyer pays the provincial tax only.
On a $5,000,000 purchase that is a difference of $159,975. On $3,500,000 it is $83,475. These are large amounts, but the lower tax is a small part of the choice between two neighbourhoods. The price of comparable homes, property tax rates and the way you live all change the answer. Run both addresses through the land transfer tax calculator and compare the running costs too.
Checking any figure by hand
Whoever gives you a number, a lawyer, a website or the city’s own calculator, you can check it in four steps.
- Start with $4,475 for the first $400,000, which is the same at every price.
- Take 2% of the part between $400,000 and $2,000,000, which is $32,000 at most.
- Add 2.5% of the part between $2,000,000 and $3,000,000, which is $25,000 at most.
- Add each higher slice at its new rate for whatever part of the price falls in it.
A home at $3,000,000 or above therefore has a base of $61,475 before any luxury slice. Every dollar over $3,000,000 then gets the rate for its band. If a figure doesn’t match this method, ask which table was used. A number built on the old rates, or one that treats the whole price at a single rate, is the most common source of confusion.
The provincial figure uses the same first steps with its own top rate. It is $36,475 on the first $2,000,000 and 2.5% above that, so a $4,000,000 home carries $86,475.
A $4,000,000 purchase with 20% down
Cash at closing is more than the down payment, so work it out in full. On a $4,000,000 home a 20% down payment is $800,000. The city tax is $61,475 plus $44,000 for the $3 to $4 million slice, or $105,475. The provincial tax is $86,475. Together the taxes are $191,950.
That takes the cash needed to $991,950 before legal fees, title insurance and adjustments. The taxes alone equal about 4.8% of the price, and they add nearly a quarter to the down payment.
Do the same at $3,500,000. A 20% down payment is $700,000 and the two taxes are $157,450, so the total is $857,450. Under the old table the cash at closing would have been $4,500 lower. The change is a small part of the total, but nothing is gained by leaving it out of the budget.
The mortgage calculator shows the loan for the remaining amount. At these prices most buyers talk to a lender well before making an offer, and the lender will want to know where the cash for the taxes is coming from.
Who the new bands affect
The bands only touch homes above $3,000,000 that contain one or two single-family residences. A buyer under that price pays exactly what the same buyer would have paid a year ago. For a buyer over it, only the part of the price above $3,000,000 is taxed at the new rate.
The seller isn’t billed. Land transfer tax is a buyer’s tax, though a seller who watches the market may feel it in the offers that come in. Higher taxes at the top can reduce what buyers are willing to pay, and by how much is impossible to say from official pages. We don’t know of any published measure, so that question stays open.
The city hasn’t said the higher bands are meant to change buyer behaviour, and we make no claim about what they will raise. If you see a specific revenue figure for the new bands quoted online, look for the council report that it comes from before repeating it. Related tools: the Closing Costs calculator, plus all our tax calculators.
Sources
- City of Toronto, Municipal Land Transfer Tax
- City of Toronto, MLTT rates and fees
- City of Toronto, MLTT historical rates
- Ontario, Calculating land transfer tax
Common questions
When did the Toronto luxury land transfer tax start?
Is there a tax cliff at $3 million?
How much is the Toronto tax on a $5 million home?
Do the new rates apply to condos?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.