Toronto Land Transfer Tax 2026

How Much Are Land Transfer Taxes in Toronto?

Your Toronto land transfer tax is calculated using marginal tax rates based on the value of consideration for your property. The tax starts at 0.5% on the first $55,000 and increases as the property’s value rises. For properties containing one or two single-family residences, the Toronto land transfer tax rate is 2.5% on the portion from $2 million to $3 million. Effective April 1, 2026, higher marginal rates ranging from 4.4% to 8.6% apply to the portion above $3 million. You will also need to pay Ontario’s provincial land transfer tax.

Toronto and Ontario Land Transfer Tax Marginal Rates for Properties Containing One or Two Single-Family Residences

Toronto Land Transfer Tax Example ($1,000,000 Purchase Price)

When was Toronto’s Municipal Land Transfer Tax introduced?

Toronto’s Municipal Land Transfer Tax (MLTT) took effect on February 1, 2008. The City of Toronto Act, 2006 gave the City authority to impose the tax, and Toronto City Council enacted the Municipal Land Transfer Tax by-law in December 2007. Toronto home buyers also pay Ontario’s provincial land transfer tax, which was introduced under the Land Transfer Tax Act, 1974.

The reason why Toronto put the municipal land transfer tax in place was to raise more money for the city’s budget. With home prices rising over 200% since 2008, when the tax was put in place, it has led to the city of Toronto’s revenue from this tax also skyrocketing. This has helped the city to fund more municipal projects and programs, with the transfer tax making up ~5% of the Toronto 2021 city budget.

Will you need to pay Toronto Land Transfer Tax if you are buying a condo?

Since land transfer tax is calculated based on the value of your condo, a lower purchase price will generally result in a lower land transfer tax bill. The table below shows how Toronto and Ontario land transfer taxes change based on the purchase price of your condo.

When is Toronto Land Transfer Tax to be paid?

Toronto’s Municipal Land Transfer Tax is generally due when the property transfer is registered. For most home purchases, this occurs as part of the closing process, and your real estate lawyer will typically calculate and arrange payment of the tax on your behalf. The closing date is established in the agreement of purchase and sale and can vary considerably between transactions.

When are Land Transfer Taxes due on Toronto pre-construction condos?

If you are purchasing a Toronto pre-construction condo, your Municipal Land Transfer Tax is generally due when the property transfer is registered. This may occur after an interim occupancy period, during which you can occupy your unit before receiving legal title. Once the condominium is registered and ownership of your unit is transferred, your lawyer will typically arrange payment of the land transfer tax as part of the final closing.

How can you pay Toronto’s Land Transfer Tax?

For most home purchases, your real estate lawyer will calculate and arrange payment of Toronto’s Municipal Land Transfer Tax on your behalf as part of the property registration process. The MLTT is generally due when the property transfer is registered.

What are the Toronto boundaries for where municipal transfer tax is owed?

Toronto’s Municipal Land Transfer Tax applies to properties located within the City of Toronto. The City is divided into four Community Council areas:

• Toronto and East York
• Etobicoke York
• North York
• Scarborough

Because postal addresses and neighbourhood names do not always make municipal boundaries clear, buyers should confirm the property’s municipality with their lawyer or through the City’s address lookup.

How has Toronto Land Transfer Tax changed over the years?

Toronto’s Municipal Land Transfer Tax was introduced in 2008, and its rate structure has changed several times since then. In 2017, Toronto expanded the residential rate structure and introduced a 2.5% marginal rate on the portion of a property’s value above $2 million. The maximum first-time home buyer rebate was also increased from $3,725 to $4,475.

On January 1, 2024, Toronto introduced additional graduated MLTT rates for high-value residential properties containing one or two single-family residences, with rates ranging from 3.5% to 7.5% on portions of the property value above $3 million.

Effective April 1, 2026, Toronto increased these high-value residential rates again. The marginal rates now range from 4.4% on the portion between $3 million and $4 million to 8.6% on the portion above $20 million. The rates up to $3 million remain unchanged.

Although the amount of land transfer tax being charged has changed with the bracket being revised, so has the municipal transfer tax rebate for first time buyers. This maximum went from $3725 to $4475 in 2017, in order to help make up for the difference in transfer taxes from the change.

Besides just the land transfer tax brackets changing in 2017, higher home prices over the years have led to higher land transfer tax amounts being owed to the city. For example, the average home price for a detached home in Toronto in 2008 was ~$435,000. On this home, $4425 would be charged in land transfer taxes based on the pre-2017 bracket. This differs from the average detached price of $1,405,478 today, which would have $24,584 in land transfer taxes using the post-2017 tax bracket. This means that land transfer taxes on average have risen over 5x for the average single family home over the course of 13 years!

How much Land Transfer Tax is collected in the city of Toronto?

According to Toronto’s 2026 Budget, the City expects to collect $850 million in Municipal Land Transfer Tax revenue in 2026, representing about 4.5% of the City’s approximately $18.9 billion operating budget funding. Of this amount, approximately $789 million is budgeted to support operating costs, with the remaining revenue dedicated to capital financing. MLTT revenue can vary significantly from year to year because it is highly sensitive to activity in Toronto’s real estate market.

City of Toronto Revenue Sources 2026

Total operating budget funding: approximately $18.9B.

How does Land Transfer Tax in Toronto compare to other major Canadian cities?

Toronto buyers pay both Ontario’s provincial land transfer tax and Toronto’s Municipal Land Transfer Tax (MLTT), which can make transfer taxes significantly higher than in many other Canadian cities. For Toronto properties containing one or two single-family residences, the municipal marginal rate reaches 8.6% on the portion above $20 million, in addition to Ontario’s provincial land transfer tax. In Vancouver, British Columbia’s Property Transfer Tax has an effective marginal rate of 5% on the residential portion above $3 million. Calgary and Edmonton do not have a land transfer tax, but land title registration fees apply. Ottawa buyers pay Ontario’s provincial land transfer tax but do not pay Toronto’s MLTT. Montréal applies its own property transfer duties, with a top marginal rate of 4% on the portion above $3,113,000 in 2026.

Who can you contact regarding Toronto Land Transfer Taxes?

For questions about Toronto’s Municipal Land Transfer Tax, you can contact the City’s Tax & Utility Inquiry Line by calling 311 within Toronto or 416-392-2489 from outside the city. You can also contact Revenue Services by email at torontomltt@toronto.ca. Documents related to MLTT can be submitted to Revenue Services at 5100 Yonge St., Lower Level, Toronto, ON M2N 5V7.

Ontario’s Non-Resident Speculation Tax (NRST) is a 25% tax that may apply when foreign entities or taxable trustees purchase or acquire an interest in residential property anywhere in Ontario. Foreign entities include foreign nationals and certain foreign corporations. The NRST was expanded province-wide and increased to 20% in March 2022, before increasing to its current 25% rate effective October 25, 2022.

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect on January 1, 2023, and the federal government has extended the prohibition to January 1, 2027. The federal prohibition operates separately from Ontario’s NRST. A purchaser who is permitted to buy property under an exception to the federal prohibition may still be required to pay Ontario’s NRST unless they also qualify for an Ontario NRST exemption.

NRST Exemptions and Rebates

The NRST does offer exemptions in some scenarios, such as:

1. If you are a nominee under the Ontario Immigrant Nominee Program,
2. If you are a protected person at the time of purchase, or
3. If you purchase with a spouse who is a Canadian citizen, permanent resident, protected person, or nominee

Ontario NRST rebate: A foreign national who pays the NRST may qualify for a rebate if they become a permanent resident of Canada within four years of the purchase and meet the applicable eligibility requirements. The rebate application generally must be submitted within 180 days of becoming a permanent resident.

NRST rebates for international students and foreign nationals working in Ontario are no longer available for agreements of purchase and sale entered into after March 29, 2022.

Toronto MNRST: In addition to Ontario’s NRST, Toronto has a Municipal Non-Resident Speculation Tax (MNRST). Effective January 1, 2025, a 10% MNRST applies to certain residential property purchases by foreign buyers in Toronto. The MNRST is charged in addition to Toronto’s Municipal Land Transfer Tax.

The Toronto First Time Home Buyer Rebate is a program that is meant to make it easier for people who do not own a home and have never purchased a home before to afford one. The way this rebate works is it will reduce the amount of land transfer tax you owe to the city of Toronto, helping to make buying a home slightly easier. The biggest reason why this program is made to help first time buyers is because they generally have a much tougher path to homeownership. First time buyers will not have equity from another home to use for a home purchase, may also not be at their prime earnings potential, and face home prices that are relatively unaffordable for most people.

Who qualifies for the Toronto First Time Home Buyers rebate?

To be eligible for the first time home buyers rebate, the buyer will need to meet the following criteria:

• Be a Canadian citizen or permanent resident of Canada, or become one within 18 months of the property transfer and otherwise meet the rebate requirements,
• Be 18 years of age or older,
• Occupy the home within 9 months of purchase,
• Have never owned a home anywhere in the world, and
• If you have a spouse, they cannot have owned a home anywhere in the world while they have been your spouse

How much can the First Time Home Buyer Rebate save you?

The Toronto First-Time Home Buyer Rebate can reduce your Municipal Land Transfer Tax by up to $4,475. For an eligible home with a value of $400,000 or less, the rebate can fully offset the Toronto municipal land transfer tax. For higher-value homes, the maximum $4,475 rebate reduces, but does not eliminate, the Toronto MLTT.

Eligible first-time home buyers may also receive an Ontario land transfer tax refund of up to $4,000. The Ontario refund can fully offset provincial land transfer tax on an eligible home valued at $368,333 or less. Combined, eligible Toronto first-time home buyers may receive up to $8,475 in Toronto and Ontario land transfer tax rebates and refunds.

If you do not claim the Toronto rebate when your transfer is registered, you can still apply afterwards. The City charges a $221.22 fee to process an MLTT refund or rebate request made after registration, and your application and supporting documents must be received within 18 months of the date of the transfer.

Besides just land transfer taxes for the city of Toronto and in Ontario, other Toronto home closing costs you can expect to incur include:

Lawyer & Legal Fees: Since it is mandatory in Ontario for a lawyer to act on your behalf when purchasing and getting a mortgage for a property, it is important to budget for this cost. This cost will likely be over $1000 for a lawyer and the other legal fees involved.

Appraisal Fees: Before you get a Toronto mortgage, your lender will require you to get a home appraisal, so they know how much to lend you. This usually will cost around $400.

Home Inspection: Although getting a home inspection is less common in Toronto’s real estate market today with bidding wars and lots of competition, this cost will be to have someone inspect the property before the sale is closed. It will usually cost around $500.

Title Insurance: This will be to protect your property and your lender from any property disputes, and will usually be around $200.

Property Survey: This is because your lawyer and lender will require an up to date certificate of the property and home. It will usually cost around $500.

MLTT Administration Fee: The City of Toronto charges an administration fee of $102.56 plus HST to process each Municipal Land Transfer Tax transaction. The fee does not apply to transfers that qualify for a full exemption under the Toronto Municipal Code, or to transactions with a value of consideration under $14,399.

Land transfer tax will only be required to be paid when you purchase a home in Toronto, however you will also have other municipal taxes. When you own a home, you must pay a yearly Toronto property tax fee to the city. This property tax fee is composed of both municipal and provincial portions, with the municipal portion going to the city for its budget, and the provincial portion going to education. In the chart below, you are able to see a breakdown of how much of your property tax bill goes to the city of Toronto, and how much goes to the province of Ontario for education.

Property Tax Rate for Toronto (2023 to 2025)

City rate includes City Building Fund levy as well as municipal and education tax rates.

History of Toronto’s Property Tax

First introduced in 1849, Ontario property tax was created with the Municipal Act, which included the creation of property tax that municipalities must collect that would also support schools. After the 1960s, the post-war boom led to a series of reforms to the tax system, for which new elements such as exemptions under certain conditions were modified. Up to this day, Ontario’s tax system has experienced steady growth and no major changes.

Toronto itself has one of the lowest property tax rates in the province as it is more densely populated compared to other cities. The tax is calculated by multiplying the current year property-value assessment, which is done by the Municipal Property Assessment Corporation (MPAC) with the total tax rate which consists of:

• Council-approved city tax rate,
• City building fund levy rate, and
• The education tax rate as set by the Ontario government

Toronto Property Tax Payment Methods

Your Pre-Authorized Tax Payment (PTP) bill will authorize your financial institution to directly withdraw tax payments and send them to the city of Toronto before the due date. You can also mail cheques, pay through online banking, and put your payments in drop boxes at select tax offices. If your mortgage lender is paying property taxes on your behalf, they will either receive your statements directly, or you will need to forward your tax statement to their office. You will keep only the final property tax bill for your records.

Property Tax Relief Programs

Toronto offers property tax relief programs for certain groups, including:

• Low-income seniors,
• Low-income people with disabilities,
• Tax appeals for owners whose property is undergoing major construction, and
• Registered charities