Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
What's Your Home Worth Right Now?
Get a free AI-powered price range for your property in under 90 seconds, based on recent GTA comparable sales. No name or address required.
Get My Free Estimate →On 1 April 2026 the City of Toronto increased its municipal land transfer tax on every portion of a purchase price above $3 million. The $3M–$4M band moved from 3.5% to 4.40%, $4M–$5M from 4.5% to 5.45%, $5M–$10M from 5.5% to 6.50%, $10M–$20M from 6.5% to 7.55% and above $20M from 7.5% to 8.60%.
Nothing changed at or below $3,000,000. Above it, the increase costs approximately $9,000 more at $4M, $18,500 more at $5M and $68,500 more at $10M. This is the second luxury-band increase in Toronto in three years, following the graduated bands introduced on 1 January 2024.
The two tables, side by side
| Portion of purchase price | 1 Jan 2024 – 31 Mar 2026 | From 1 Apr 2026 | Change |
|---|---|---|---|
| Up to $2,000,000 | 0.5% to 2.0% graduated | Unchanged | — |
| $2,000,000.01 – $3,000,000 | 2.5% | 2.5% | — |
| $3,000,000.01 – $4,000,000 | 3.5% | 4.40% | +0.90 pts |
| $4,000,000.01 – $5,000,000 | 4.5% | 5.45% | +0.95 pts |
| $5,000,000.01 – $10,000,000 | 5.5% | 6.50% | +1.00 pt |
| $10,000,000.01 – $20,000,000 | 6.5% | 7.55% | +1.05 pts |
| Over $20,000,000 | 7.5% | 8.60% | +1.10 pts |
What it costs in dollars
| Purchase price | Toronto MLTT before | Toronto MLTT now | Increase |
|---|---|---|---|
| $3,000,000 | $61,475 | $61,475 | No change |
| $4,000,000 | $96,475 | $105,475 | +$9,000 |
| $5,000,000 | $141,475 | $159,975 | +$18,500 |
| $10,000,000 | $416,475 | $484,975 | +$68,500 |
Adding Ontario’s land transfer tax on top, the combined bill on a $5,000,000 Toronto purchase is now $271,450, and on a $10,000,000 purchase $721,450.
The direction of travel
This is the second increase concentrated on the top of the Toronto market in three years. Before 1 January 2024, the municipal tax was a flat 2.0% on everything above $400,000. The graduated luxury bands introduced that day ran to 7.5% above $20 million; the April 2026 revision raised every one of them.
Whether further increases follow is not something anyone can honestly predict. What can be said is that a buyer at $5 million in Toronto has seen the municipal component of their closing tax move from $96,475 under a flat 2.0% structure to $159,975 today.
Who this actually affects
Almost nobody, by transaction count — and a great deal, by dollars. RE/MAX counted 300 GTA sales above $3 million between January and April 2026 and 62 above $5 million. Within the City of Toronto, 39 homes sold in the $5 million to $7.499 million band in that period. The increase falls on a very small number of transactions, which is precisely why a graduated luxury band is politically straightforward to raise.
The practical takeaway
If you are buying above $3 million in Toronto, recalculate. Any land transfer tax figure produced before April 2026 is now understated, and by a meaningful amount at the top. Have your lawyer confirm the exact number for your transaction, including which rate applies given your agreement and closing dates.
Frequently asked questions
What are Toronto’s current municipal land transfer tax rates?
For a single-family residence of one or two units: 0.5% to $55,000; 1.0% to $250,000; 1.5% to $400,000; 2.0% to $2,000,000; 2.5% to $3,000,000; 4.40% to $4,000,000; 5.45% to $5,000,000; 6.50% to $10,000,000; 7.55% to $20,000,000; and 8.60% above $20,000,000.
Does the increase affect homes under $3 million?
No. The bands up to $3,000,000 are unchanged. A $2.5 million purchase pays exactly what it paid before 1 April 2026.
How much does the increase cost at $5 million?
Approximately $18,500. Under the previous bands the Toronto tax on a $5,000,000 purchase was $141,475; under the current bands it is $159,975.
Why did Toronto increase it?
The municipal land transfer tax is a City revenue measure, and the graduated luxury bands introduced in January 2024 and increased in April 2026 concentrate the increase at the top of the market. The City publishes its rates and fees directly.
Which rate applies to my purchase?
Generally the rate in effect at the relevant time for your transaction, which depends on the agreement and closing dates. This is exactly the kind of question to put to your Ontario real estate lawyer rather than to a website.
Does the increase apply outside the City of Toronto?
No. Only the City of Toronto charges a municipal land transfer tax. Elsewhere in Ontario only the provincial land transfer tax applies.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Land transfer tax on a luxury home in Toronto: the full 2026 numbers
- Closing costs on a $5 million Toronto home: the full line-by-line
- Toronto luxury real estate in 2026: what the numbers actually say
- Is Toronto luxury real estate a good investment?
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- City of Toronto — Municipal Land Transfer Tax rates and fees
- Government of Ontario — Calculating land transfer tax
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.