Land transfer tax, first-time buyer refunds, HST on new homes, capital gains, the vacant home tax and every other cost that lands on closing day — answered for Toronto and the rest of Ontario, with the arithmetic shown.
Land transfer tax
How much is land transfer tax on a $1 million home in Toronto?
About $32,950: $16,475 in Ontario land transfer tax plus a matching $16,475 in Toronto’s municipal land transfer tax, because a Toronto purchase pays both. Outside Toronto you pay only the Ontario $16,475. A qualifying first-time buyer gets up to $4,000 back on the Ontario tax and up to $4,475 back on the Toronto tax, bringing the total to $24,475.
Full guide: Toronto municipal land transfer tax rates 2026Try it: Land transfer tax calculatorSource: Ontario: calculating land transfer tax
Last reviewed October 2026 · Jatin Dua, Broker of Record
How is Ontario land transfer tax calculated?
Ontario land transfer tax is charged in brackets on the purchase price: 0.5% up to $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2 million, and 2.5% above $2 million on homes with one or two single-family residences. That works out to $6,475 on $500,000, $12,475 on $800,000 and $16,475 on $1,000,000.
Full guide: Land transfer tax in Toronto and OntarioTry it: Land transfer tax calculatorSource: Ontario: calculating land transfer tax
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I pay land transfer tax twice in Toronto?
Yes — inside the City of Toronto you pay the Ontario land transfer tax and the Toronto municipal land transfer tax, and below $3 million the two use the same brackets, so the Toronto amount roughly doubles the bill. Toronto is the only GTA municipality with its own land transfer tax; Mississauga, Brampton, Vaughan, Markham, Oakville and Durham Region charge only the Ontario tax.
Full guide: Etobicoke or Mississauga: the cost differenceTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Does Mississauga have a municipal land transfer tax?
No. Mississauga, like the rest of Peel, Halton, York and Durham, charges no municipal land transfer tax — only Toronto does. On a $1,000,000 home that saves $16,475 compared with buying the same home in Toronto (or $12,000 for a first-time buyer after Toronto’s refund).
Full guide: Etobicoke vs Mississauga closing costsTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much is land transfer tax on a $3 million home in Toronto?
About $122,950 combined — $61,475 Ontario plus $61,475 Toronto municipal tax. Toronto raised its municipal rates on the portion of a price above $3 million from 1 April 2026, so above that line the Toronto share climbs faster than the Ontario share: the combined tax is about $191,950 at $4 million and $271,450 at $5 million.
Full guide: Land transfer tax on a luxury home in TorontoTry it: Land transfer tax calculatorSource: City of Toronto: MLTT rates
Last reviewed October 2026 · Jatin Dua, Broker of Record
Did Toronto’s land transfer tax change in 2026?
Yes, for purchases above $3 million: from 1 April 2026 Toronto’s municipal land transfer tax rates are 4.40% on the portion from $3 million to $4 million, 5.45% to $5 million, 6.50% to $10 million, 7.55% to $20 million and 8.60% above $20 million. Below $3 million nothing changed, and Ontario’s own brackets, including its 2.5% rate above $2 million, are unchanged.
Full guide: Toronto MLTT rates 2026Try it: Land transfer tax calculatorSource: City of Toronto: MLTT rates
Last reviewed October 2026 · Jatin Dua, Broker of Record
When do I pay land transfer tax?
On closing day, through your real estate lawyer, as part of registering the transfer — it is not paid when you sign the offer. Your lawyer collects it with the balance of your down payment and other closing funds, and claims any first-time buyer refund at the same time.
Full guide: What happens on closing day in OntarioTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do you pay land transfer tax on a pre-construction condo?
Yes, on final closing when the unit is registered and title transfers to you, calculated on the full purchase price. During interim occupancy you pay an occupancy fee instead, not land transfer tax.
Full guide: Interim occupancy fees explainedTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
First-time buyer refunds and rebates
How much is the first-time home buyer land transfer tax rebate in Ontario?
Up to $4,000 off the Ontario land transfer tax, which wipes out the tax completely on homes up to $368,333. In Toronto a first-time buyer also gets up to $4,475 off the municipal tax. On a $600,000 Toronto home that cuts the combined bill from $16,950 to $8,475.
Full guide: First-time buyer land transfer tax refundsTry it: Land transfer tax calculatorSource: Ontario: refunds for first-time homebuyers
Last reviewed October 2026 · Jatin Dua, Broker of Record
Who counts as a first-time home buyer for the Ontario land transfer tax refund?
For the Ontario refund you must be at least 18, occupy the home as your principal residence within nine months, and never have owned a home or an interest in a home anywhere in the world — and if you have a spouse, they cannot have owned a home while they were your spouse. The FHSA and the federal programs use a different, four-year test, so you can qualify for one and not the other.
Full guide: First-time home buyer programs in OntarioSource: Ontario: refunds for first-time homebuyers
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I get the first-time buyer land transfer tax refund if my spouse owned a home before?
It depends on when they owned it. You are disqualified only if your spouse owned a home while they were your spouse; if they owned and sold before you became spouses, you can still qualify. Check this with your lawyer before you count on the refund.
Full guide: First-time buyer land transfer tax refundsTry it: Land transfer tax calculatorSource: Ontario: refunds for first-time homebuyers
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the first-time home buyer GST rebate on new homes?
The federal First-Time Home Buyers’ GST Rebate removes the GST on a newly built home up to $1 million — a saving of up to $50,000 — and phases out to zero between $1 million and $1.5 million. It applies to agreements signed after 26 May 2025 and before 2031, for a buyer who is 18+, a Canadian citizen or permanent resident, has not owned a principal residence in the current year or the four before it, and is the first occupant.
Full guide: First-time home buyers’ GST rebate explainedTry it: New-home HST relief checker
Last reviewed October 2026 · Jatin Dua, Broker of Record
Is there an Ontario HST rebate on a new home?
Yes. The Ontario New Housing Rebate returns 75% of the 8% provincial portion of the HST, up to $24,000, with no price ceiling. The time-limited Ontario Enhanced New Housing Rebate gives up to $80,000 where the agreement with the builder is signed between 1 April 2026 and 31 March 2027, and you do not have to be a first-time buyer to get it.
Full guide: Ontario HST rebates on new homes, 2026Try it: New-home HST relief checker
Last reviewed October 2026 · Jatin Dua, Broker of Record
Does the federal GST new housing rebate still help in Toronto?
Realistically, no. The older federal GST New Housing Rebate tops out at $6,300 and disappears entirely once the home’s fair market value reaches $450,000, thresholds that have never been indexed. The First-Time Home Buyers’ GST Rebate is the one that matters at GTA prices.
Full guide: New-home HST rebates in Ontario
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I use both the FHSA and the RRSP Home Buyers’ Plan?
Yes. You can withdraw from a First Home Savings Account and the RRSP Home Buyers’ Plan for the same purchase, as long as you meet each program’s own conditions. The FHSA withdrawal is tax-free and never repaid; the Home Buyers’ Plan is a loan from your RRSP that must be repaid over time.
Full guide: FHSA vs Home Buyers’ Plan: which first
Last reviewed October 2026 · Jatin Dua, Broker of Record
Closing costs for buyers
What closing costs should I budget for when buying a home in Toronto?
Beyond the down payment, budget for land transfer tax (Ontario plus Toronto’s municipal tax inside the city), legal fees and disbursements, title insurance, the home inspection, an appraisal if your lender wants one, 8% Ontario sales tax on any CMHC premium (paid in cash), and adjustments for property tax or condo fees the seller prepaid. Land transfer tax is by far the largest line — $16,950 on a $600,000 Toronto home before any first-time refund.
Full guide: Closing costs when buying a home in TorontoTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I pay tax on CMHC mortgage insurance in Ontario?
Yes — Ontario charges 8% retail sales tax on the mortgage default insurance premium, and it must be paid in cash on closing, even though the premium itself is added to your mortgage. On a $565,000 insured mortgage with a $23,730 premium, that is about $1,898 in cash.
Full guide: Minimum down payment in OntarioTry it: GTA affordability calculatorSource: Ontario: sales tax on insurance
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is title insurance and do I need it in Ontario?
Title insurance is a one-time policy, bought at closing through your lawyer, that covers losses from title problems such as fraud, survey or zoning issues, and unpaid work orders the search did not catch. It is not legally required, but most lenders ask for a lender policy and most Ontario lawyers recommend an owner policy as well.
Full guide: Title insurance in Ontario: what it covers
Last reviewed October 2026 · Jatin Dua, Broker of Record
What are adjustments on closing?
Adjustments are the credits and charges that split prepaid costs between buyer and seller as of the closing date — mostly property tax, condo fees and sometimes fuel. If the seller already paid the year’s property tax, you reimburse them for the days after closing; your lawyer shows every adjustment on the statement of adjustments.
Full guide: What happens on closing day
Last reviewed October 2026 · Jatin Dua, Broker of Record
Taxes for foreign, non-resident and investor buyers
What is the non-resident speculation tax in Ontario?
Ontario’s Non-Resident Speculation Tax is 25% of the purchase price on residential property bought anywhere in Ontario by a foreign national, foreign corporation or taxable trustee. Since 1 January 2025 Toronto adds its own 10% municipal non-resident speculation tax on purchases inside the city.
Full guide: Ontario NRST explained
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can foreigners buy a home in Canada in 2026?
Mostly not. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act bans most non-Canadians from buying residential property in Canada until 1 January 2027, with exceptions such as certain work-permit holders, refugee claimants and permanent residents. Where a purchase is allowed, Ontario’s 25% NRST and Toronto’s 10% tax still apply.
Full guide: Who pays the NRST and who is exempt
Last reviewed October 2026 · Jatin Dua, Broker of Record
What happens when a non-resident sells a property in Canada?
A non-resident seller must get a section 116 clearance certificate from the CRA; without it, the buyer must hold back 25% of the purchase price (more on some property types) and remit it to the CRA. In practice the buyer’s lawyer holds back the funds on closing until the certificate arrives.
Full guide: Section 116 for non-resident sellers
Last reviewed October 2026 · Jatin Dua, Broker of Record
Capital gains and selling taxes
Do I pay capital gains tax when I sell my house in Ontario?
Not on your principal residence: the principal residence exemption usually makes the whole gain on the home you lived in tax-free, though you still must report the sale on your tax return. A rental property, cottage or second home is taxed on the gain, and since the planned increase to the inclusion rate was cancelled in March 2025, half of the gain is included in income.
Full guide: Principal residence reporting when you sell
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I have to report the sale of my home to the CRA if no tax is owing?
Yes. Since 2016 you must report the sale of a principal residence on Schedule 3 of your tax return and designate it on Form T2091(IND), even when the exemption covers the whole gain, and the CRA can charge a penalty for a late or missing designation. Ask your accountant to handle it in the year you sell.
Full guide: Principal residence reporting
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the 365-day flipping rule in Canada?
If you sell a home you have owned for less than 365 days, the federal anti-flipping rule treats the entire profit as business income — fully taxable, with no principal residence exemption — unless the sale is because of a listed life event such as death, separation, a new job or the birth of a child.
Full guide: Capital gains when you downsize
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I pay HST when I sell my house in Ontario?
Usually not on the sale of a used home you lived in — resale residential property is generally HST-exempt. You do pay 13% HST on the real estate commission and on legal fees. HST can apply to new homes, substantially renovated homes and property sold in the course of a business.
Full guide: HST when selling a house in Ontario
Last reviewed October 2026 · Jatin Dua, Broker of Record
Property tax and city taxes
What is Toronto’s vacant home tax?
Toronto charges a Vacant Home Tax of 3% of a residential property’s current assessed value if it was vacant for more than six months of the year without an exemption, and every owner must file a declaration each year — failing to declare can trigger the tax and penalties. Buyers should check the seller’s declaration status before closing.
Full guide: Vacant home tax: what a buyer inherits
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I have to declare for Toronto’s vacant home tax if I live in my home?
Yes. Every residential owner in Toronto must file an occupancy declaration each year, even if they live in the home; if you do not declare, the City treats the home as vacant and bills the 3% tax, and a false declaration can bring a fine of up to $10,000.
Full guide: Toronto vacant home tax and MLTT 2026
Last reviewed October 2026 · Jatin Dua, Broker of Record
Is an empty house exempt from the vacant home tax while it is for sale?
No. An ordinary owner gets no exemption just because the home is listed: the exemption for property offered for sale covers only builders’ newly built inventory. If your home sits empty for six months or more during a slow sale, you are exposed, though there is an exemption for the year legal ownership transfers.
Full guide: Owning two homes and the vacant home tax
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is Toronto’s property tax rate in 2026?
For 2026 Toronto’s total residential property tax rate is 0.767311% of your MPAC assessed value — 0.605295% city, 0.153000% education and 0.009016% City Building Fund. A new condo is taxed at the higher multi-residential rate while it is under construction or unoccupied, dropping to the residential rate once occupied.
Full guide: Property tax and MPAC explained
Last reviewed October 2026 · Jatin Dua, Broker of Record
Why is my Ontario property assessment still based on 2016 values?
Because Ontario postponed the province-wide reassessment: MPAC assessments for the 2026 tax year still use the January 1, 2016 valuation date. Your tax depends on that assessed value multiplied by your city’s tax rate, so a home bought today can carry an assessment well below its price.
Full guide: Why MPAC still uses 2016 values
Last reviewed October 2026 · Jatin Dua, Broker of Record
Will my property taxes go up after I buy?
Not because you bought — Ontario property tax follows the MPAC assessment, not your price. Taxes rise with your city’s annual rate changes, and MPAC can issue a supplementary or omitted assessment after new construction or a major renovation that raises value, billing extra tax for the current year and up to two prior years.
Full guide: Property tax and MPAC assessment explained
Last reviewed October 2026 · Jatin Dua, Broker of Record
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Jatin Dua · Broker of Record · RE/MAX Quantum Realty · Toronto and the GTA