Land Transfer Tax Calculator: Toronto Rates, Rebates & Exemptions

Buying a home in Toronto means paying two land transfer taxes at closing: the Ontario provincial tax and the Toronto municipal land transfer tax. Both use the same progressive bracket system, so on a $500,000 home the combined bill is $12,950 before any rebates. On an $800,000 home it is $24,950. First-time buyers can knock up to $8,475 off that total through two separate rebate programs.

Why Toronto Buyers Pay Two Taxes

Most Ontario buyers pay only the provincial land transfer tax. Toronto is the exception. Under the City of Toronto Act, 2006, the city has levied its own municipal land transfer tax (MLTT) since 2008.¹ Any property inside the City of Toronto boundaries triggers both taxes, and the buyer pays each in full.

Buy in Mississauga, Markham, Vaughan, or anywhere else in the GTA outside Toronto proper and only the provincial tax applies. That difference roughly doubles the land transfer tax inside the city.

Ontario Provincial Rates

The provincial tax applies to every Ontario purchase, Toronto included. It uses marginal brackets: each rate applies only to the slice of the price inside that range, not to the whole amount.²

First $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 (residential): 2.5%

The 2.5% top rate only applies to properties with one or two single-family residences. Non-residential and commercial properties cap at 2.0%.

Toronto Municipal Rates

For single-family residential property (one or two residences on the land), the Toronto MLTT uses the same bracket structure as the province:¹

First $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%

Non-residential property follows a separate MLTT schedule that tops out at 2.0% on amounts over $400,000, with no 2.5% tier.¹ Commercial buyers and purchasers of multi-unit buildings that don’t qualify as single-family residential should run the numbers using those lower caps.

Calculating the Tax on Your Purchase Price

Because both taxes use marginal brackets, you work through each tier and add them up. Here is the math on an $800,000 Toronto home.

Provincial Portion

$55,000 × 0.5% = $275
$195,000 × 1.0% = $1,950
$150,000 × 1.5% = $2,250
$400,000 × 2.0% = $8,000

Provincial total: $12,475.²

Municipal Portion

$55,000 × 0.5% = $275
$195,000 × 1.0% = $1,950
$150,000 × 1.5% = $2,250
$400,000 × 2.0% = $8,000

Municipal total: $12,475.¹

Combined land transfer tax on an $800,000 Toronto home: $24,950. That is the cash the buyer needs at closing before any rebate.

First-Time Buyer Rebates

First-time buyers in Toronto can claim two separate rebates. The provincial rebate covers up to $4,000.³ The Toronto MLTT rebate covers up to $4,475.⁴ Combined, that is up to $8,475. On lower-priced homes the rebates can wipe the tax out entirely.

Applying the rebates to the $800,000 example: $24,950 minus $8,475 leaves $16,475 payable at closing.

Who Qualifies

Both rebates share the same core rules. You must be at least 18, a Canadian citizen or permanent resident, and you cannot have ever owned a home, or any interest in a home, anywhere in the world. If you have a spouse, they cannot have owned a home while they were your spouse.⁴

The Toronto MLTT rebate adds one more condition: you must occupy the home as your principal residence within nine months of closing.⁴ Investment properties do not qualify for the municipal rebate even if you have never owned before.

When several people are on title and only some qualify, the rebate is prorated by ownership share. If you and a partner buy equally and only you qualify, you get half.

Deadline

Your lawyer normally claims the provincial rebate at registration. If it is not claimed at that point, you have 18 months from the date of the transfer to apply directly to the Ministry of Finance.³ Miss that window and the refund is gone.

What the Tax Is Actually Calculated On

The taxable amount is not simply the number on your purchase agreement. Ontario calls it the “value of the consideration,” meaning the purchase price plus any other value exchanged in the deal.⁵ For resale homes this is usually just the sale price. For new builds the difference matters.

On a new construction purchase, the taxable amount includes builder upgrades, development charges the builder passes through, and other costs assumed as part of the deal.⁵ A pre-construction condo listed at $600,000 can easily have a taxable value of $630,000 once upgrades and closing adjustments are added. Have your lawyer confirm the exact figure before closing.

Transfers That May Be Exempt

Not every change of title triggers the full tax. Several transfers between family members move at reduced or zero cost, and these exemptions apply to the Toronto MLTT as well as the provincial tax.

Between Spouses

A transfer between current or former spouses is exempt when the only consideration is assuming an existing mortgage, when the transfer follows a separation agreement, or when a court orders it.⁶ “Spouse” includes common-law partners who have lived together continuously for at least three years. If one spouse buys the other out at market value beyond assuming the mortgage, tax is owed on the amount paid.

Gifts to Family

A genuine gift of property, with no money changing hands and no mortgage assumed, results in zero tax because the rate is applied to a nil value of consideration.⁷ The moment the recipient takes on a mortgage or pays anything, tax is owed on that amount. This covers parent-to-child and grandparent-to-grandchild transfers, as well as estate distributions where a beneficiary assumes debt.

Non-Resident Buyers

Foreign buyers face an additional 25% Non-Resident Speculation Tax on residential property anywhere in Ontario, charged on top of both land transfer taxes.⁸ The NRST applies to anyone who is not a Canadian citizen or permanent resident, and to foreign corporations and certain trusts.

On that same $800,000 Toronto home, a foreign national would owe $24,950 in combined land transfer taxes plus $200,000 in NRST. Buyers who obtain permanent residency within four years can apply for an NRST rebate, provided they file within 180 days of receiving PR status and occupied the property as their principal residence throughout.

Separately, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is in force through January 1, 2027, barring most non-citizens and non-permanent-residents from buying residential property in Canada at all. Narrow exceptions cover certain work permit holders and buildings with four or more units.

Paying at Closing

Your lawyer collects both taxes from you in advance of closing and remits them when the transfer is electronically registered through Ontario’s Teraview system. The provincial tax goes to the Ministry of Finance, the municipal tax to the City of Toronto. Title does not move into your name until both are paid in full.

If you are claiming a first-time buyer rebate, your lawyer typically applies it at registration so you only bring the net amount. Get the eligibility documentation to them well before closing day. A shortfall caused by miscalculated land transfer tax is one of the fastest ways to delay or collapse a deal.

1
City of Toronto. Municipal Land Transfer Tax (MLTT) Rates and Fees
2
Government of Ontario. Calculating Land Transfer Tax
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Government of Ontario. Land Transfer Tax Refunds for First-Time Homebuyers
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City of Toronto. Municipal Land Transfer Tax (MLTT) Rebate Opportunities
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Government of Ontario. Determining the Value of the Consideration for Transfers of New Homes
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Government of Ontario. Transfers of Land Between Spouses
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Ontario.ca. Land Transfer Tax – Transactions for Nominal Consideration
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Government of Ontario. Non-Resident Speculation Tax