Every home buyer in Ontario pays provincial land transfer tax (LTT) when the sale closes. If the home is in the City of Toronto, you pay a second, municipal land transfer tax (MLTT) on top. On a $1,000,000 Toronto home, that's $32,950 in total before any rebate. First-time buyers can get up to $8,475 of it back.
Below are the official rate brackets, the refund rules and three worked examples, with the arithmetic shown so you can check it. It's one piece of our first-time buyer guide.
How Ontario's land transfer tax is calculated
Land transfer tax is charged in brackets, like income tax. Each rate applies only to the slice of the price that falls inside its bracket. These are Ontario's rates for a property with one or two single-family homes (which includes condos and townhouses):
| Portion of the price | Ontario rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Last checked: October 2026.
The buyer pays the tax when the transfer is registered on closing. Your real estate lawyer pays it from the funds you provide for closing. Sellers don't pay land transfer tax on the home they sell.
Toronto's municipal land transfer tax
Toronto's MLTT applies only to property in the City of Toronto. Up to $3 million, its brackets match Ontario's. On April 1, 2026, the City added higher rates for homes over $3 million:
| Portion of the price | Toronto MLTT rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
Last checked: October 2026.
This is the "double land transfer tax" people talk about. A Toronto buyer pays both taxes. A buyer in Mississauga, Brampton, Vaughan or Markham pays only the provincial one.
First-time buyer refunds
Ontario: up to $4,000. The provincial refund works out to no tax on the first $368,000 of the price. To qualify you must:
- be at least 18
- be a Canadian citizen or permanent resident (if you aren't one at closing, you have 18 months after registration to become one and apply)
- never have owned a home, or an interest in one, anywhere in the world
- move in as your principal residence within nine months
If your spouse owned a home while married to you, neither of you qualifies. If you buy with someone who isn't a first-time buyer, the refund shrinks to match your share.
Toronto: up to $4,475. The City's rebate covers the municipal tax on the first $400,000. The conditions are similar: 18 or older, no previous home ownership by you or your spouse, and occupancy within nine months. You must be a Canadian citizen or permanent resident. If you become one within 18 months of the transfer, you can still apply.
Both are usually claimed by your lawyer when the deed is registered, so the refund comes off the tax you pay at closing. If it isn't claimed then, you have 18 months to apply to each government.
Worked example: $700,000
The first four brackets add up to a fixed amount for the first $400,000. Here's that piece, from Ontario's own worked example:
- First $55,000 × 0.5% = $275
- Next $195,000 ($55,000 to $250,000) × 1.0% = $1,950
- Next $150,000 ($250,000 to $400,000) × 1.5% = $2,250
- Tax on the first $400,000 = $4,475
For a $700,000 home:
- The slice from $400,000 to $700,000 is $300,000 × 2.0% = $6,000
- Ontario LTT = $4,475 + $6,000 = $10,475
- Toronto MLTT uses the same brackets, so it's also $10,475
- Toronto total = $20,950
- First-time buyer in Toronto: $20,950 − $4,000 − $4,475 = $12,475
Worked example: $1,000,000
- $400,000 to $1,000,000 is $600,000 × 2.0% = $12,000
- Ontario LTT = $4,475 + $12,000 = $16,475
- Toronto MLTT = $16,475
- Toronto total = $32,950
- First-time buyer in Toronto: $32,950 − $8,475 = $24,475
Worked example: $1,300,000
- $400,000 to $1,300,000 is $900,000 × 2.0% = $18,000
- Ontario LTT = $4,475 + $18,000 = $22,475
- Toronto MLTT = $22,475
- Toronto total = $44,950
- First-time buyer in Toronto: $44,950 − $8,475 = $36,475
Toronto vs Mississauga side by side
Same three prices, one home inside the City of Toronto and one in Mississauga, where only the provincial tax applies.
| Price | Toronto, repeat buyer | Toronto, first-time buyer | Mississauga, repeat buyer | Mississauga, first-time buyer |
|---|---|---|---|---|
| $700K | $20,950 | $12,475 | $10,475 | $6,475 |
| $1M | $32,950 | $24,475 | $16,475 | $12,475 |
| $1.3M | $44,950 | $36,475 | $22,475 | $18,475 |
Last checked: October 2026. Assumes one or two single-family residences and full refunds for first-time buyers.
The gap at each price equals the Toronto MLTT, less the Toronto rebate for first-time buyers. At $1 million, a first-time buyer pays $12,000 more in Toronto. Compare areas on our neighbourhood guides, starting with Toronto.
Who counts as a first-time buyer?
Each program has its own test, which trips people up:
- Ontario and Toronto LTT: you've never owned a home, anywhere in the world, at any time.
- FHSA, Home Buyers' Plan and the federal tax credit: you haven't lived in a home you owned in the current year or the previous four calendar years.
Someone who sold a condo five years ago can be a first-time buyer for the FHSA and still not qualify for the land transfer tax refunds. See our first-time buyer incentives guide for how all the programs fit together.
Extra taxes for foreign buyers
Buyers who aren't Canadian citizens or permanent residents also pay Ontario's 25% Non-Resident Speculation Tax anywhere in the province. In Toronto they pay the City's 10% Municipal Non-Resident Speculation Tax as well. Both have exemptions, covered in our newcomer guide.
Plan for it in your closing cash
Land transfer tax can't be added to your mortgage. It comes out of the cash you bring to closing, along with legal fees, adjustments and other items. Our closing costs checklist puts it all on one page.
Quick answers
Do I pay land transfer tax in Mississauga, Brampton or Vaughan? Yes, the provincial tax. Toronto's MLTT applies only inside the City of Toronto.
I'm buying with a parent who already owns a home. Do I still get the refund? Partly. Ontario reduces the refund in proportion to the share held by the buyer who doesn't qualify. Ask your lawyer how the title split affects the Toronto rebate too.
I missed the refund at closing. Is it gone? No. Both Ontario and Toronto accept applications for 18 months after the transfer, with supporting documents such as your agreement of purchase and sale and proof that you moved in.
Get your numbers for a specific home
If you're deciding between a Toronto address and one across the city line, the tax difference belongs in that decision. Bring a few addresses to a Gameplan Session and we'll work out the land transfer tax and closing cash for each. Book a free Gameplan Session.
This is general information, not financial, tax or legal advice. Your lawyer calculates the exact tax on closing; confirm with your lender, lawyer and accountant.
Sources
- Ontario, Land transfer tax (checked October 2026)
- Ontario, Calculating land transfer tax (checked October 2026)
- Ontario, Land transfer tax refunds for first-time homebuyers (checked October 2026)
- Ontario, Non-Resident Speculation Tax (checked October 2026)
- City of Toronto, MLTT rates and fees (checked October 2026)
- City of Toronto, MLTT and MNRST information (checked October 2026)
- City of Toronto, MLTT rebate opportunities (checked October 2026)
- CRA, How to participate in the Home Buyers' Plan (checked October 2026)
