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Get My Free Estimate →A Toronto purchase pays land transfer tax twice; a Mississauga purchase pays it once. On a $900,000 home that is $14,475 more in Etobicoke, in cash at closing — about $10,000 more after first-time buyer rebates. The reason is statutory, not political: s. 17(1)(a) of the Municipal Act, 2001 denies municipalities a general taxing power, and s. 267 of the City of Toronto Act, 2006 gives Toronto alone the power to impose direct taxes. Peel cannot add one without a change at Queen’s Park. Running the other way, Mississauga’s combined annual property tax rate has historically been the higher of the two — so it is a break-even question about how long you stay, not a verdict.
My office is at 799 The Queensway. Twelve minutes west and you are in Mississauga, and the single largest difference between buying on one side of that line and the other is a tax that most comparison articles leave out entirely. It is worth roughly the price of a car on a typical purchase, and unlike property tax it is paid once, in cash, on closing day.
The number
| Purchase price | Ontario land transfer tax | Toronto municipal LTT | Total in Etobicoke | Total in Mississauga |
|---|---|---|---|---|
| $600,000 | $8,475 | $8,475 | $16,950 | $8,475 |
| $750,000 | $11,475 | $11,475 | $22,950 | $11,475 |
| $900,000 | $14,475 | $14,475 | $28,950 | $14,475 |
| $1,100,000 | $18,475 | $18,475 | $36,950 | $18,475 |
| $1,300,000 | $22,475 | $22,475 | $44,950 | $22,475 |
| $1,600,000 | $28,475 | $28,475 | $56,950 | $28,475 |
On a $900,000 purchase, the same price costs $14,475 more in land transfer tax on the Etobicoke side of the border. First-time buyer rebates reduce both sides — up to $4,000 from Ontario everywhere, plus up to $4,475 from the City in Toronto only — so for a first-time buyer the gap narrows to about $10,000. For everyone else it is the full amount.
Why it exists, since it is not a policy quirk
Municipal Act, 2001, s. 17(1)(a): the broad general powers that Ontario municipalities operate under “do not authorize a municipality to… impose taxes”. A municipality can levy only what a statute specifically grants it. Property tax, the vacant home tax and the transient accommodation tax are granted. A land transfer tax is not.
City of Toronto Act, 2006, s. 267(1): “The City may, by by-law, impose a tax in the City in accordance with this Part if the tax is a direct tax.” Toronto alone has that general power, and it is the statutory basis for the Municipal Land Transfer Tax.
So this is a difference in legislation, not in council policy. Peel Region cannot decide to add a land transfer tax next year, and Mississauga cannot either. It would take a change at Queen’s Park. Anyone telling you Mississauga might introduce one is describing something that is not currently possible.
Confirmed from the other direction too: the Region of Peel’s own list of taxes runs to property tax, water and wastewater rates, the Vacant Home Tax and two rebate programmes. The City of Mississauga’s list is property tax and its billing mechanics. Neither includes a land transfer tax, and Ontario’s land transfer tax page names Toronto as the only municipality with one.
The comparison most articles make instead, and why it inverts the answer
The usual Toronto-versus-Mississauga cost article compares property tax rates, finds that Mississauga’s combined rate is higher than Toronto’s, and concludes Mississauga is the more expensive city. One well-researched local piece runs to nearly five thousand words on exactly this, cites MPAC and the municipal budgets properly, mentions Peel ten times — and never mentions land transfer tax at all.
That omission reverses the conclusion for most buyers, because it leaves out the one number that is both large and certain.
Both things are true and they operate on different timescales:
| Etobicoke (City of Toronto) | Mississauga (Peel Region) | |
|---|---|---|
| Land transfer tax, paid once at closing | Provincial and municipal | Provincial only |
| Annual property tax rate | Historically the lower of the two | Historically the higher of the two |
| Who sets the municipal rate | Single tier — the City of Toronto alone | Two tier — the City of Mississauga plus the Region of Peel |
| Education portion of the tax bill | 0.153% of assessed value for 2026 | 0.153% — identical, it is provincial |
The honest framing is a break-even question rather than a verdict. The land transfer tax difference is paid once and known exactly. The property tax difference is paid every year and compounds. Which dominates depends entirely on how long you stay, and that is your answer to give, not mine. There is a fuller explanation of how the tax bill is actually built on the assessment page.
What else changes at the border
| Etobicoke | Mississauga | |
|---|---|---|
| Vacant Home Tax | City of Toronto, 3 per cent of assessed value, annual declaration required. A purchaser can be left liable. | Region of Peel operates a Vacant Home Tax. Confirm the current declaration requirement with the Region. |
| Municipal non-resident speculation tax | Yes — Toronto levies its own 10 per cent on top of Ontario’s 25 per cent, from 1 January 2025. | No municipal layer. Ontario’s 25 per cent applies province-wide. |
| Land transfer tax rebate for first-time buyers | $4,000 Ontario plus up to $4,475 Toronto | $4,000 Ontario only |
| Rent regulation | Identical — the Residential Tenancies Act is provincial | Identical |
| New home warranty | Identical — Tarion is provincial | Identical |
For a foreign national the border is dramatic. A qualifying purchase in Toronto carries Ontario’s 25 per cent non-resident speculation tax plus Toronto’s 10 per cent municipal version — 35 per cent combined, before either land transfer tax. The same purchase in Mississauga carries 25 per cent. The NRST page sets out who that actually applies to, and permanent residents are outside it entirely.
What I am not going to tell you
Which side to buy on. That turns on your commute, whether you want a condominium or a lot, school preferences, how long you intend to stay, and what is actually available in your range on the week you are looking. Those are not things a tax table decides, and I have no interest in pushing anyone across a municipal boundary to suit my own convenience.
What I will do is make sure the closing-cost number is in front of you before you write an offer rather than after, because it is large, it is cash, and on the Toronto side it surprises people who have been shopping in Peel.
Shopping on both sides of the border?
A lot of my clients look in south Etobicoke and east Mississauga in the same week, and the closing-cost difference is rarely in front of them when they write the offer. Send me the price range and I will give you both numbers, rebates included, before you need them.
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Frequently asked questions
Does Mississauga have a land transfer tax?
Only the provincial one. There is no municipal land transfer tax in Mississauga or anywhere in Peel Region. Section 17(1)(a) of the Municipal Act, 2001 denies municipalities a general power to impose taxes, and no statute grants them a land transfer tax.
Why does Toronto get to charge one?
Section 267(1) of the City of Toronto Act, 2006 gives the City a general power to impose direct taxes, which no other Ontario municipality has. The Municipal Land Transfer Tax rests on that power. Ontario’s own land transfer tax page names Toronto as the only municipality with a municipal land transfer tax.
How much more does it cost to buy in Etobicoke than Mississauga?
On land transfer tax alone: $8,975 more at $600,000, $11,475 at $750,000, $14,475 at $900,000, $18,475 at $1.1 million, $22,475 at $1.3 million and $28,475 at $1.6 million. First-time buyers can claim up to $4,475 of the Toronto portion back, which narrows the gap but does not close it.
Is Mississauga cheaper overall then?
Not necessarily. Mississauga’s combined property tax rate has historically been higher than Toronto’s, and that is paid every year rather than once. Land transfer tax is a one-time certainty; property tax is a recurring difference. Which dominates depends on how long you stay, and that is your call to make.
Could Peel introduce a municipal land transfer tax?
Not under current legislation. It would require the province to grant Peel or Mississauga a specific taxing power that the Municipal Act does not currently give them. This is a difference in statute, not a council decision that could change at a budget meeting.
What about the foreign buyer taxes?
Ontario’s 25 per cent Non-Resident Speculation Tax applies province-wide, so on both sides. Toronto additionally levies its own 10 per cent Municipal Non-Resident Speculation Tax from 1 January 2025, so a qualifying Toronto purchase carries 35 per cent combined against 25 per cent in Mississauga. Permanent residents are outside both.
Is the education portion of property tax different?
No. The education rate is set provincially under O. Reg. 400/98 and is 0.153 per cent of assessed value for 2026 for residential property, identical everywhere in Ontario. Only the municipal portion differs, and in Mississauga that municipal portion is itself two rates — the City’s and the Region of Peel’s.
Related reading
- Toronto land transfer tax: the bracket table from 1 April 2026
- MPAC, your 2016 assessment, and how the tax bill is actually built
- Every first-time buyer programme in Ontario for 2026
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Municipal Act, 2001, S.O. 2001, c. 25. e-Laws. Section 17(1)(a) provides that the general municipal powers in ss. 9, 10 and 11 do not authorise a municipality to impose taxes. Accessed 30 August 2026.
- City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A. e-Laws. Section 267 gives the City of Toronto alone a general power to impose direct taxes, which is the statutory basis for the Municipal Land Transfer Tax. Accessed 30 August 2026.
- Calculating land transfer tax. Ontario Ministry of Finance. The bracket table and the published quick calculation formula. Accessed 30 August 2026.
- Municipal Land Transfer Tax rates and fees. City of Toronto. Page headed “Rates as of April 1, 2026”. Accessed 30 August 2026.
- Municipal Land Transfer Tax rebate opportunities. City of Toronto. First-time purchaser rebate to a maximum of $4,475, claimable within 18 months of the conveyance. Accessed 30 August 2026.
- Land Transfer Tax refunds for first-time homebuyers. Ontario Ministry of Finance. Maximum refund $4,000 since 1 January 2017; apply within 18 months. Accessed 30 August 2026.
- Region of Peel — taxes and rates. Region of Peel. Lists the Region’s tax programmes: property tax, water and wastewater rates, the Vacant Home Tax and two rebate programmes. No land transfer tax. Accessed 30 August 2026.
- City of Mississauga — property taxes. City of Mississauga. The combined rate is the City rate plus the Region rate plus the provincial education rate. No land transfer tax appears among the City’s taxes. Accessed 30 August 2026.
- Property tax. Ontario Ministry of Finance. Property tax has a municipal portion and an education portion; the education rate is set by the Minister under O. Reg. 400/98. Accessed 30 August 2026.
- O. Reg. 400/98 — Tax Matters: Rates for School Purposes. e-Laws. For 2026 the education tax rate for residential property is prescribed at 0.153 per cent of assessed value, province-wide. Accessed 30 August 2026.
- Non-Resident Speculation Tax. Ontario Ministry of Finance. Rate of 25 per cent effective 25 October 2022, applying province-wide. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.