Land Transfer Tax on an Etobicoke Purchase, and the Two Rebates People Miss

Etobicoke is inside the City of Toronto. That single fact means an Etobicoke buyer pays two land transfer taxes where a buyer in Mississauga, Brampton, Vaughan or Oakville pays one. It is usually the largest closing cost on the statement of adjustments, and it is the one people most often underestimate.

There are also two separate first-time buyer rebates — one provincial, one municipal — and they are claimed differently. People routinely claim one and miss the other.

Every rate on this page was taken from the government source that publishes it, on 25 August 2026, and each source is listed at the bottom with the date that page states. Rates change. Confirm them before you rely on them, and take your own legal and tax advice — I am a Realtor, not a lawyer or an accountant.

Tax one: provincial land transfer tax

These brackets have been in force since 1 January 2017. The tax is marginal, so each portion of the price is taxed at its own rate — the whole price is not taxed at the top rate.

• Up to $55,000 — 0.5%
• $55,000.01 to $250,000 — 1.0%
• $250,000.01 to $400,000 — 1.5%
• $400,000.01 to $2,000,000 — 2.0%
• Over $2,000,000 — 2.5% (this top bracket applies to one or two single-family residences)

Tax two: Toronto Municipal Land Transfer Tax

Toronto’s brackets for one- and two-unit residential property, effective 1 April 2026:

• Up to $55,000 — 0.5%
• $55,000.01 to $250,000 — 1.0%
• $250,000.01 to $400,000 — 1.5%
• $400,000.01 to $2,000,000 — 2.0%
• $2,000,000.01 to $3,000,000 — 2.5%
• $3,000,000.01 to $4,000,000 — 4.40%
• $4,000,000.01 to $5,000,000 — 5.45%
• $5,000,000.01 to $10,000,000 — 6.50%
• $10,000,000.01 to $20,000,000 — 7.55%
• Over $20,000,000 — 8.60%

There is also an MLTT administration fee of $102.56 plus HST, and a Municipal Non-Resident Speculation Tax of 10% for buyers who are not Canadian citizens or permanent residents.

Read the two tables side by side and the important point appears. Below $2 million they are identical, so the municipal tax simply doubles the bill. Above $3 million they diverge sharply, and Toronto’s municipal tax becomes the larger of the two.

What it actually costs

Calculated from the brackets above, for a single-family residence:

• $700,000 — provincial $10,475 + municipal $10,475 = $20,950
• $900,000 — provincial $14,475 + municipal $14,475 = $28,950
• $1,000,000 — provincial $16,475 + municipal $16,475 = $32,950
• $1,500,000 — provincial $26,475 + municipal $26,475 = $52,950
• $2,000,000 — provincial $36,475 + municipal $36,475 = $72,950

Add the administration fee and HST to each. This is cash on closing. It cannot be added to the mortgage.

The two rebates

Provincial: up to $4,000

The Ontario first-time homebuyer refund has a maximum of $4,000. You have 18 months from registration to claim it if it was not applied at closing.

Municipal: up to $4,475

Toronto’s first-time purchaser rebate has a maximum of $4,475.

Together: up to $8,475

A first-time buyer in Etobicoke can recover $8,475 where a first-time buyer in Mississauga can recover $4,000 — because the Mississauga buyer never paid the second tax in the first place.

The price points where each rebate runs out

This is the part almost nobody publishes, and it falls straight out of the arithmetic.

Toronto’s $4,475 rebate is exactly the municipal tax on a $400,000 purchase. Run the brackets: $275 + $1,950 + $2,250 = $4,475. The rebate was set to zero out the municipal tax at precisely that price. Above $400,000 you start paying municipal tax on the excess at 2%.

The provincial $4,000 refund covers the full provincial tax up to about $368,333. Above that, you pay the difference.

What that means in practice for an Etobicoke first-time buyer: at any realistic Etobicoke price, both rebates will be fully used and you will still owe a substantial amount. On a $700,000 condominium the tax is $20,950 and the rebates cover $8,475 of it, leaving $12,475 to find. Budget the net figure, not the rebate.

Who qualifies

Both rebates use closely aligned tests. You must:

• be at least 18;
• have never owned a home anywhere in the world;
• have a spouse who did not own a home while married to you — this is the condition that surprises people most, because your own history is not the only history that counts;
• be a Canadian citizen or permanent resident;
• occupy the home as your principal residence within nine months of the transfer.

Do not self-assess this. Tell your lawyer your full ownership history and your spouse’s before closing, so the rebate is applied at registration rather than chased afterwards.

The one thing worth doing before you make an offer

Take the price you are considering, run both bracket tables, subtract whichever rebates you qualify for, and add the administration fee. Write that number down next to your down payment. On an Etobicoke purchase it is frequently larger than the home inspection, the legal fees, the title insurance and the moving costs put together — and unlike those, there is no way to shop around for it.

Frequently asked questions

Sources

• Ontario — Calculating land transfer tax. The provincial bracket table in force since 1 January 2017 and the definition of a single family residence. Page last updated 22 April 2026. Accessed 24 August 2026.
• Ontario — Land transfer tax refunds for first-time homebuyers. The $4,000 maximum refund, the eligibility conditions and the 18-month claim window. Page last updated 10 February 2026. Accessed 24 August 2026.
• City of Toronto — Municipal Land Transfer Tax rates and fees. The Toronto bracket table effective 1 April 2026 including the brackets above $2 million, the $102.56 administration fee and the 10% Municipal Non-Resident Speculation Tax. Page last updated 7 April 2026. Accessed 24 August 2026.
• City of Toronto — MLTT rebate opportunities. The $4,475 maximum first-time purchaser rebate and its eligibility conditions. Page last updated 18 December 2025. Accessed 24 August 2026.

Related reading

• Etobicoke or Mississauga? The costs that differ across Highway 427
• Is Etobicoke still a city? What amalgamation means for your tax bill
• What is my home worth in Toronto and the GTA?
• GTA home prices by property type