Toronto Municipal Land Transfer Tax Explained

If you buy a home inside the City of Toronto, you pay two land transfer taxes: Ontario’s and the city’s own Municipal Land Transfer Tax, or MLTT. On a $1,000,000 home each one is $16,475, so the total is $32,950. First-time buyers can claim back up to $4,475 of the city tax.

The city tax works in slices, just like the provincial one, and it has carried higher rates for expensive homes since April 1, 2026. Below $3,000,000 the numbers are the same as before. This article covers the bands, worked examples at four prices, the rebate rules and the cash you need to have ready.

What the MLTT is and who charges it

Toronto is the only city in Ontario with the power to charge its own tax on property transfers, and it uses it. The province collects its tax through the land registry. The city collects the MLTT through its Revenue Services division, usually at the same time and through the same lawyer.

Buyers pay it, not sellers. It appears on your closing statement as a separate line from the provincial tax, and the two are worked out independently. The amounts are due when the transfer is registered, and both come out of the money you hand your lawyer before the closing date.

City Council passed the latest change on December 17, 2025. It introduced graduated rates for high-value homes containing one or two single-family residences, and those rates took effect on April 1, 2026. If your purchase agreement closes after that date, the new bands apply.

Where it applies

The tax applies to property inside the City of Toronto. A house in Etobicoke, Scarborough, North York or the old downtown is covered. A house just north of Steeles Avenue in Markham or Vaughan isn’t, and neither is one in Mississauga. Those buyers pay the provincial tax only.

That gap explains some of the interest in the 905 area codes when prices go up. The gap gets bigger as prices rise, because the top city rates are steep. On a $5,000,000 home, for example, the city tax is $159,975, and none of that is owed on the other side of the boundary. Price is only one factor, of course. Commute, schools and the home itself matter more than a tax line for most buyers.

Check the municipality on the property record rather than the mailing address. Some addresses that say Toronto sit outside the city boundary, and the reverse is possible too. Your lawyer will confirm which one applies when they run the title search.

The bands from April 1, 2026

Each rate below applies only to the part of the price that falls in that band. Homes with one or two single-family residences follow the full table. All other property types keep the older structure, which tops out at 2% for the part of the price above $400,000.

From January 1, 2024 to March 31, 2026 the bands above $3,000,000 were lower, at 3.5%, 4.5%, 5.5%, 6.5% and 7.5% in the same order. The three lowest luxury bands, up to $3,000,000, did not change. So for most Toronto buyers, this year’s update has no effect at all.

The first $400,000 of any price costs $4,475, the same as in the provincial table. Between $400,000 and $2,000,000 each extra $100,000 adds $2,000. You can also use the Toronto MLTT calculator to run any price.

A $600,000 condo, slice by slice

Condos are the usual first purchase in Toronto, so start there. The city tax on $600,000 is calculated like this.

• $55,000 at 0.5% gives $275.
• $195,000 up to $250,000 at 1.0% gives $1,950.
• Another $150,000 up to $400,000 at 1.5% gives $2,250.
• The last $200,000 at 2.0% gives $4,000.

That adds to $8,475. The provincial tax on the same price is also $8,475, so the two taxes together come to $16,950. For a buyer who doesn’t qualify for any rebate, that is about 2.8% of the price, which is real money to find on top of a down payment.

A first-time buyer takes off up to $4,475 from the city figure and $4,000 from the provincial one. That leaves $4,000 for the city and $4,475 for the province, or $8,475 in all.

A $1,500,000 house

A detached house at $1,500,000 sits in the 2% band for most of its price. The first $400,000 costs $4,475. Then the remaining $1,100,000 at 2% adds $22,000, and the city tax comes to $26,475.

Add the same figure from the province and the taxes come to $52,950 at closing. A rebate of $4,475 at the city and $4,000 at the province for a first-time buyer still leaves $44,475. The rebates are a fixed amount, so the bigger the price, the smaller the share they cover.

A shortcut works between $400,000 and $2,000,000. Take 2% of the price and subtract $3,525. At $1,500,000 that is $30,000 minus $3,525, or $26,475. The $3,525 is the saving from the lower bands at the bottom of the table.

Homes above $2,000,000

From $2,000,000 upward, the per-dollar cost rises. At exactly $2,000,000 the city tax is $36,475. At $3,000,000 it is $61,475, because the extra $1,000,000 in the 2.5% band adds $25,000.

Here is where the April 2026 change shows up. Take a $3,500,000 detached home. Up to $3,000,000 the tax is $61,475 under both tables. The last $500,000 was taxed at 3.5% before, which is $17,500, so the total was $78,975. Since April 1 that slice is taxed at 4.40%, which is $22,000, so the total is $83,475. The difference is $4,500.

The gap widens as the price climbs. At $5,000,000 the new total is $159,975 and the old one was $141,475, a difference of $18,500. An $8,000,000 home now carries $354,975 against $306,475 before. For a $25,000,000 estate the new tax is $1,669,975 and the old would have been $1,441,475, which is a difference of $228,500.

Ontario adds its own 2.5% above $2,000,000 for the same homes. On a $5,000,000 purchase the province collects $111,475 and the city $159,975, so the total is $271,450. Anyone spending that kind of money should have a lawyer confirm the figures in writing well before closing.

How the two taxes stack up

Here is a side-by-side for four common prices in Toronto, using the current bands. Neither rebate is applied.

Up to $3,000,000 the two columns match. Beyond that point they separate, because the city’s bands climb faster than the province’s flat 2.5%.

The provincial calculation is covered in the article on Ontario land transfer tax, and the calculator at that address runs both taxes for you.

The first-time buyer rebate

The city refunds up to $4,475 to eligible first-time buyers. That figure equals the whole city tax on a $400,000 home, so on any price up to $400,000 the tax is fully refunded. Above that it is a fixed $4,475.

The conditions from the City of Toronto are these.

• Buyers must be at least 18 years old.
• The home has to become your principal residence within nine months of the purchase.
• No ownership of a home, or an interest in one, anywhere in the world at any time.
• Canadian citizenship or permanent residence, or becoming a permanent resident within 18 months.
• If you are married, your spouse can’t have owned a home during the marriage.

The rebate covers newly built and resale residential homes. It doesn’t cover commercial, industrial or multi-residential property.

One point causes disputes. The ownership test looks at any time and any place, so a share in a family home abroad or a property inherited years ago can count. If any of that applies, raise it with your lawyer before closing, not after the application is turned down.

Claiming the rebate

The rebate isn’t automatic. An application has to be made to the city’s Revenue Services, MLTT office. It needs a completed application and supplementary forms, the registered conveyance and the agreement of purchase and sale, proof of citizenship or permanent residence, and proof of occupancy for each first-time buyer.

Occupancy proof means documents such as a telephone bill, a cable bill or a driver’s licence showing the new address. Utility bills and property tax bills are not accepted. Ask each buyer to update their address on a licence early, because that is often the easiest proof to produce.

The application must reach the city within 18 months after the transfer. A processing fee applies. Many lawyers file it as part of the closing work, and some ask you to file it yourself once you have moved in, so confirm which one applies to you. If the lawyer files at closing, the rebate reduces the tax at the time. If it is filed later, you pay the full city tax first and receive the refund afterwards, so plan the cash on that basis.

Cash you need on closing day

The MLTT is a closing cost, and the lender’s mortgage advance normally covers the price, not the taxes. Budget for both land transfer taxes in full, since a refund that arrives later still leaves a gap on the day. On a $1,000,000 condo that gap is $32,950 before any rebate.

The closing costs calculator at closing costs lists the other charges to add, such as legal fees and title insurance.

If the home is in Toronto, also plan for the property tax and any prepaid amounts the seller is credited for. Ask your lawyer for the draft statement of adjustments a few days early, and compare its land transfer tax lines with the figures in this article. See also the Ontario NRST calculator, and the full set of tax calculators.

Sources

• City of Toronto, Municipal Land Transfer Tax
• City of Toronto, MLTT rates and fees
• City of Toronto, MLTT rebate opportunities
• City of Toronto, MLTT historical rates
• Ontario, Calculating land transfer tax

Common questions

Last reviewed: September 29, 2026. Figures come from the official sources listed above. How we check the numbers and our editorial policy.