Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →Toronto is the only municipality in Ontario that charges its own land transfer tax on top of the provincial one, and it raised the rates on homes above $3 million on 1 April 2026. On a $5,000,000 single-family purchase in the City of Toronto the combined bill is $271,450, payable in cash on closing. At $10,000,000 it is $721,450.
The same $5,000,000 purchase in Mississauga, Oakville, Vaughan or Markham attracts only the Ontario tax of $111,475 — a difference of $159,975 on day one. None of it is financeable, none of it is refundable, and the first-time buyer rebates of $4,000 provincially and $4,475 municipally are immaterial at this level.
Table one: Ontario land transfer tax
Applies everywhere in the province. Marginal, so each rate applies only to the portion of price within its band.
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 – $250,000 | 1.0% |
| $250,000.01 – $400,000 | 1.5% |
| $400,000.01 – $2,000,000 | 2.0% |
| Over $2,000,000 — single-family residence, one or two units | 2.5% |
For property that is not a one or two unit single-family residence, the rate above $400,000 is a flat 2.0% with no 2.5% tier.
Table two: Toronto municipal land transfer tax, effective 1 April 2026
| Portion of purchase price | Rate from 1 Apr 2026 | Previous rate (Jan 2024 – Mar 2026) |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000.01 – $250,000 | 1.0% | 1.0% |
| $250,000.01 – $400,000 | 1.5% | 1.5% |
| $400,000.01 – $2,000,000 | 2.0% | 2.0% |
| $2,000,000.01 – $3,000,000 | 2.5% | 2.5% |
| $3,000,000.01 – $4,000,000 | 4.40% | 3.5% |
| $4,000,000.01 – $5,000,000 | 5.45% | 4.5% |
| $5,000,000.01 – $10,000,000 | 6.50% | 5.5% |
| $10,000,000.01 – $20,000,000 | 7.55% | 6.5% |
| Over $20,000,000 | 8.60% | 7.5% |
An administration fee of $102.56 plus HST also applies, and a refund processing fee of $221.22 where a refund is claimed.
The combined numbers
| Purchase price | Ontario LTT | Toronto MLTT | Combined, payable on closing | As % of price |
|---|---|---|---|---|
| $2,000,000 | $36,475 | $36,475 | $72,950 | 3.6% |
| $3,000,000 | $61,475 | $61,475 | $122,950 | 4.1% |
| $4,000,000 | $86,475 | $105,475 | $191,950 | 4.8% |
| $5,000,000 | $111,475 | $159,975 | $271,450 | 5.4% |
| $10,000,000 | $236,475 | $484,975 | $721,450 | 7.2% |
| $20,000,000 | $486,475 | $1,239,975 | $1,726,450 | 8.6% |
Toronto versus the 905
Only the City of Toronto charges a municipal land transfer tax. Everywhere else in Ontario, only the provincial tax applies.
| Purchase price | In Toronto | In Mississauga, Oakville, Vaughan, Markham | Difference |
|---|---|---|---|
| $3,000,000 | $122,950 | $61,475 | $61,475 |
| $5,000,000 | $271,450 | $111,475 | $159,975 |
| $10,000,000 | $721,450 | $236,475 | $484,975 |
This should not decide where you live. It should be in the conversation before you fall in love with an address.
Non-resident buyers: two further layers
Where the buyer is a foreign national, foreign corporation or taxable trustee, Ontario’s Non-Resident Speculation Tax applies at 25% of the purchase price province-wide, and the City of Toronto adds its Municipal Non-Resident Speculation Tax of 10%, effective 1 January 2025. Those stack on top of both land transfer taxes. A federal prohibition on purchases by non-Canadians is also in force until 1 January 2027, subject to exemptions.
The practical takeaway
At $5 million in Toronto, land transfer tax alone is more than a quarter of a million dollars. Treat it as a fixed cost of the address rather than a closing detail, and have your lawyer confirm the exact figure for your transaction before you commit.
Frequently asked questions
How much is land transfer tax on a $3 million home in Toronto?
$61,475 in Ontario land transfer tax and $61,475 in Toronto municipal land transfer tax, for a combined $122,950 payable on closing. Confirm your own figures with your lawyer, since the calculation depends on the property type and the exact price.
What changed on 1 April 2026?
The City of Toronto increased its municipal land transfer tax rates on the portions of price above $3 million. The band from $3M to $4M went from 3.5% to 4.40%, $4M to $5M from 4.5% to 5.45%, $5M to $10M from 5.5% to 6.50%, $10M to $20M from 6.5% to 7.55%, and above $20M from 7.5% to 8.60%.
How much more does the April 2026 increase cost?
Nothing at $3,000,000 or below. Approximately $9,000 more at $4,000,000, $18,500 more at $5,000,000 and $68,500 more at $10,000,000, calculated from the two rate tables.
Does land transfer tax apply to condominiums?
Yes, identically. Ontario and Toronto land transfer tax apply to a condominium purchase exactly as they do to a house at the same price.
Is land transfer tax financeable?
No. It is payable in cash on closing, in addition to your down payment. This is the single most common budgeting error in high-value Ontario purchases.
Do first-time buyer rebates help at this level?
Not meaningfully. The Ontario rebate is a maximum of $4,000 and the Toronto rebate a maximum of $4,475, and both require that the buyer has never owned a home anywhere. Combined, they represent about 0.2% of the tax on a $5 million purchase.
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
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Related reading
- Toronto raised its luxury land transfer tax again: what changed on 1 April 2026
- Closing costs on a $5 million Toronto home: the full line-by-line
- Can a foreign buyer purchase a luxury home in Toronto in 2026?
- Buying a luxury house in Toronto: the complete 2026 guide
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
- Government of Ontario — Land transfer tax refunds for first-time homebuyers
- City of Toronto — MLTT rebate opportunities
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.