Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Toronto buyers pay Ontario land transfer tax and Toronto’s municipal tax, which match up to $2 million. On the October 2026 Toronto median of $835,000, that is $26,350, or $17,875 for a first-time buyer. No rate change has been announced for 2027; Toronto’s higher tiers above $3 million began April 1, 2026.
This guide is for anyone buying a home in the City of Toronto in 2027: first-time buyers, move-up buyers, luxury buyers and people closing on pre-construction. You will get the current rates, worked numbers at real Toronto prices by home type, the first-time buyer refunds, and the extra fees that come with the tax on closing day.
How much is land transfer tax in Toronto in 2027?
Toronto is the only place in Ontario where you pay land transfer tax twice: once to the Province and once to the City as the Municipal Land Transfer Tax (MLTT). Up to $2 million, both use the same brackets, so your bill is about double what you would pay in Mississauga, Vaughan or Markham.
On a $835,000 home, the October 2026 median price for all home types in the City of Toronto, the two taxes come to $26,350. A qualifying first-time buyer pays $17,875 after both refunds.
As of November 10, 2026, no change to either tax has been announced for 2027. The Province’s rates have been in place since January 1, 2017. Toronto’s current rates took effect on April 1, 2026, when the City added higher tiers above $3 million. Any 2027 change would come from Toronto City Council or the Province, so check toronto.ca and ontario.ca before you close.
What are the Toronto land transfer tax rates for 2027?
Each rate applies only to the slice of the price inside that bracket. These are the rates for a home with one or two single-family residences, which covers houses and condos.
| Portion of the price | Ontario LTT | Toronto MLTT |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| $3,000,000 to $4,000,000 | 2.5% | 4.40% |
| $4,000,000 to $5,000,000 | 2.5% | 5.45% |
| $5,000,000 to $10,000,000 | 2.5% | 6.50% |
| $10,000,000 to $20,000,000 | 2.5% | 7.55% |
| Over $20,000,000 | 2.5% | 8.60% |
Source: Ontario Ministry of Finance, Calculating Land Transfer Tax; City of Toronto, MLTT and MNRST Rates and Fees (rates from April 1, 2026). Rates as of November 10, 2026.
A quick way to check a bill between $400,000 and $2 million: Ontario’s formula is 2% of the price minus $3,525. Toronto’s tax is the same number in that range. I walk through every bracket in my post on Toronto’s MLTT brackets.
How much land transfer tax will you pay on a typical Toronto home?
Here are both taxes at the average October 2026 sale price for each home type in the City of Toronto.
| Home type (Toronto, Oct 2026 average) | Price | Ontario LTT | Toronto MLTT | Total | First-time buyer total |
|---|---|---|---|---|---|
| Condo apartment | $659,214 | $9,659 | $9,659 | $19,319 | $10,844 |
| Townhouse | $927,804 | $15,031 | $15,031 | $30,062 | $21,587 |
| Semi-detached | $1,225,229 | $20,980 | $20,980 | $41,959 | $33,484 |
| Detached | $1,603,886 | $28,553 | $28,553 | $57,105 | $48,630 |
Source: Prices from TRREB Market Watch, October 2026 (City of Toronto, 416, average price by home type). Taxes are my calculation from the Ontario and Toronto rates above; first-time buyer column assumes the full $4,000 Ontario and $4,475 Toronto refunds.
Land transfer tax is paid in cash on closing. Your mortgage does not cover it, so it has to come out of savings on top of your down payment.
How much do first-time buyers save on Toronto land transfer tax?
Up to $8,475 combined. Ontario refunds up to $4,000, which means no provincial tax on the first $368,000 of the price. Toronto rebates up to $4,475, which equals the city tax on the first $400,000. On a home at or under $368,000, a first-time buyer pays no Ontario tax at all.
The rules are strict, and they are not the same as the federal GST rebate test:
- You must be at least 18 and must never have owned a home, or an interest in a home, anywhere in the world.
- If you have a spouse, they cannot have owned a home anywhere while they were your spouse.
- You must move in as your principal residence within nine months of closing.
- You must be a Canadian citizen or permanent resident. If you become one within 18 months of closing, you can still apply.
Your lawyer normally claims both refunds when the deed is registered. If you miss it, you have 18 months to apply. Toronto charges a $221.22 fee to process an MLTT refund after registration. Ontario’s October 2026 fiscal update also proposes raising the fine for a false refund claim from $4,000 to $10,000. My 2027 guide to the Ontario refund covers parents on title and spouses in detail.
Free tool — what can you actually afford?
How much more is land transfer tax in Toronto than in Mississauga or Vaughan?
Outside Toronto you pay only the Ontario tax. The difference is the whole MLTT.
| Purchase price | Toronto (both taxes) | Mississauga, Vaughan or any 905 city (Ontario only) | Extra cost in Toronto |
|---|---|---|---|
| $600,000 | $16,950 | $8,475 | $8,475 |
| $835,000 | $26,350 | $13,175 | $13,175 |
| $1,225,000 | $41,950 | $20,975 | $20,975 |
| $2,000,000 | $72,950 | $36,475 | $36,475 |
Source: My calculation from Ontario Ministry of Finance and City of Toronto rates, November 2026. Before any first-time buyer refunds.
That gap matters when you are torn between, say, a semi in Etobicoke or North York and a similar home across the border in Mississauga or Vaughan. It is cash on closing day, not a monthly cost, so compare it against the price, commute and property tax differences rather than on its own.
What land transfer tax do luxury buyers pay in Toronto?
Above $2 million, Ontario’s rate rises to 2.5% for homes with one or two single-family residences, and Toronto matches it up to $3 million. Above $3 million, Toronto’s April 2026 tiers make its tax much larger than the provincial one.
- $2.5 million: $48,975 Ontario plus $48,975 Toronto, a total of $97,950.
- $3.5 million: $73,975 Ontario plus $83,475 Toronto, a total of $157,450.
Many online calculators were built before April 2026 and still show the old Toronto rates above $3 million. Ask your lawyer to confirm the figure before you firm up a deal at that level.
Do you pay land transfer tax on a new build or pre-construction home?
Yes. Land transfer tax applies to new homes, but Ontario says it is not charged on the HST. The tax is based on the “value of the consideration,” which includes the purchase price plus things like upgrades and certain soft costs the builder charges.
That has a 2027 twist. Many buyers closing pre-construction this year signed years ago at higher prices. Your land transfer tax is based on the price in your agreement, not today’s market value. With GTA prices lower than a year ago, budget for the tax on the contract price plus upgrades, not on what similar units are selling for now.
Land transfer tax must be paid in full before your deed can be registered. If you are short on closing day, the deal cannot close on time. Ask your lawyer for a draft statement of adjustments and a closing funds figure at least two weeks before closing, and have the money in your lawyer’s trust account early.
When and how is land transfer tax paid in Toronto?
Your real estate lawyer pays both taxes for you on closing day, when the transfer is registered electronically. The money comes from the funds you send to the lawyer’s trust account. Expect a few small add-ons with it:
- Toronto MLTT administration fee: $102.56 plus HST on each transaction.
- Ontario registration fee: from November 2, 2026, registering each electronic document costs $86.42 including HST on the system fee. A purchase with a mortgage usually means at least two registrations, the deed and the mortgage.
For the full closing-day list, see my post on buyer closing costs in Ontario for 2027. Transfers between family members follow different rules, covered in land transfer tax between family members.
Do foreign buyers pay more land transfer tax in Toronto?
Yes. A foreign national buying residential property in Ontario pays the Non-Resident Speculation Tax (NRST) of 25% on top of the regular land transfer tax. Since January 1, 2025, Toronto adds its own Municipal Non-Resident Speculation Tax of 10%. Ontario and Toronto both offer a rebate if the buyer becomes a permanent resident within four years and meets the other conditions. I explain who is caught and who is exempt in the NRST explained.
I put land transfer tax at the top of every Toronto buyer’s cash plan, because it is the one closing cost people underestimate by half when they come from the 905. If you are near a bracket edge, a small price change will not move the tax much: above $400,000, every extra $10,000 of price adds $400 in Toronto, $200 to each government. Negotiate on price and terms, not on the tax.
What to do next
- Work out both taxes for your target price using the rates above, or ask me for a closing-cost sheet.
- Check whether you meet both first-time buyer tests, including your spouse’s ownership history.
- Add the MLTT admin fee, registration fees, legal fees and title insurance to get your full cash-to-close figure.
- If you are comparing Toronto with a 905 city, put the land transfer tax gap next to the price difference.
- Send your lawyer your funds early, and confirm the refunds are claimed on registration.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
What is the land transfer tax rate in Toronto for 2027?
Ontario and Toronto each charge marginal rates from 0.5% to 2.0% on homes up to $2 million, rising to 2.5% above that and, for Toronto only, 4.40% to 8.60% above $3 million. Combined, most Toronto homes between $650,000 and $2 million pay about 2.9% to 3.6% of the price in 2027, based on rates in force in November 2026.
Are Toronto land transfer tax rates changing in 2027?
No change has been announced as of November 10, 2026. Ontario’s rates have applied since January 1, 2017, and Toronto’s current Municipal Land Transfer Tax rates took effect April 1, 2026, adding higher tiers from 4.40% to 8.60% above $3 million. Any 2027 change would come from Toronto City Council or the Province, so confirm on toronto.ca before closing.
How much is land transfer tax on a $1 million home in Toronto?
$32,950. A $1 million home in Toronto pays $16,475 in Ontario land transfer tax and $16,475 in Toronto Municipal Land Transfer Tax in 2027. A qualifying first-time buyer gets up to $4,000 back from Ontario and up to $4,475 from Toronto, bringing the total down to $24,475. Outside Toronto, the same home pays only $16,475.
How much is the Toronto first-time home buyer land transfer tax rebate?
Up to $4,475 from Toronto, plus up to $4,000 from Ontario, for a combined $8,475. You must be 18 or older, never have owned a home anywhere in the world, move in within nine months, and be a Canadian citizen or permanent resident. Both rebates apply to new and resale homes, and you can apply within 18 months if not claimed on closing.
Do you pay land transfer tax on a condo in Toronto?
Yes. Condos pay the same Ontario and Toronto land transfer tax as houses. At the October 2026 average Toronto condo apartment price of $659,214, the combined tax is about $19,319, or about $10,844 for a first-time buyer who qualifies for both refunds. New condos also pay it, but not on the HST portion of the price.
Is land transfer tax included in my mortgage in Ontario?
No. Land transfer tax is a closing cost paid in cash on closing day, through your lawyer, in addition to your down payment. In Toronto it can be about $19,000 to $57,000 on typical homes in 2027, depending on type and price. Budget for it separately from your down payment and have it in your lawyer’s trust account before closing.
Do you pay land transfer tax on HST for a new home in Ontario?
No. Ontario’s Ministry of Finance says the value of the consideration does not include HST paid on the purchase price. Land transfer tax is charged on the price, upgrades and certain builder soft costs. For a pre-construction home closing in Toronto in 2027, the tax is based on the price in your agreement, even if market values have dropped since you signed.
How much more is land transfer tax in Toronto than Mississauga?
Exactly double for homes up to $2 million. Mississauga buyers pay only the Ontario tax, while Toronto buyers also pay the Municipal Land Transfer Tax at the same rates. On an $835,000 home in 2027 that is $26,350 in Toronto versus $13,175 in Mississauga, a $13,175 difference before first-time buyer refunds.
What is the Toronto land transfer tax for foreign buyers?
Foreign nationals pay two extra taxes in Toronto in 2027: Ontario’s 25% Non-Resident Speculation Tax and Toronto’s 10% Municipal Non-Resident Speculation Tax, on top of regular land transfer tax. A rebate may be available if the buyer becomes a permanent resident within four years, holds the home only alone or with a spouse, and uses it as a principal residence.
Sources
- Ontario Ministry of Finance: Calculating land transfer tax
- Ontario: Land transfer tax refunds for first-time homebuyers
- City of Toronto: MLTT and MNRST rates and fees
- City of Toronto: MLTT and MNRST rebate opportunities
- Ontario: Non-Resident Speculation Tax
- Ontario 2026 Economic Outlook and Fiscal Review, Annex
- Ontario Land Registration Bulletin 2026-04: fee changes effective November 2, 2026
- TRREB Market Watch, October 2026
Related reading
- Biggest Condo Developers in Toronto: Track Records Buyers Should Check
- Is It a Good Idea to Buy a Condo in Toronto in 2027?
- Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
- Can You Buy a House With No Down Payment in Ontario?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.
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