HomeHow much is land transfer tax in Toronto?
If you were to purchase the average priced home in the City of Toronto it would cost $39,901 in land transfer tax. High LTT in the city of Toronto is a result of the double land transfer tax — the combination of Toronto's municipal LTT and Ontario's provincial LTT.
Toronto land transfer tax
The land transfer taxes shown around Toronto in the above map are based on the average home price in June 2024. The land transfer tax (LTT) shown is a combination of both the Ontario provincial and Toronto municipal land transfer tax. These amounts exclude possible first-time homebuyer rebates available at the provincial and municipal level. There will also be a municipal land transfer tax (MLTT) administration fee of $96.68 + HST that you will be charged for the processing of the transaction.
Read more: Toronto Housing Market Overview
If the propery you are purchasing is in Toronto, you will also be charged a municipal land transfer tax which is also calculated on the value of the property. Toronto charges this municipal tax to generate revenue that funds services such as healthcare, education and infrastructure.
Land transfer tax rebate in Toronto
A first-time homebuyers rebate is available on the Toronto land transfer tax up to a maximum of $4,475. The full value of the $4,475 municipal rebate is used once the purchased home price is $400,000 or more. When you submit your rebate you will be charged an municipal land transfer tax (MLTT) administration fee which is $208.52 + HST. The first-time home purchase rebate applies to newly constructed and resale residential properties — the rebate does not apply to commercial, industrial or mulit-residential properties. You must comply with the first-time homebuyers criteria to receive the Toronto land transfer tax rebate.
Toronto land transfer tax rates
These rates are charged on homes that are within the boundaries of Toronto — this includes homes purchased that are north of lake Ontario, east of Etobicoke, south of Steeles Avenue and west of Scarborough.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| More than $2,000,000 up to $3,000,000 | 2.5% |
| More than $3,000,000 up to $4,000,000 | 3.5% |
| More than $4,000,000 up to $5,000,000 | 4.5% |
| More than $5,000,000 up to $10,000,000 | 5.5% |
| More than $10,000,000 up to $20,000,000 | 6.5% |
| More than $20,000,000 | 7.5% |
Toronto land tranfer tax example
How to calculate the land transfer tax in Toronto: This example is for a $725,000 home purchased in Toronto, Ontario using the above municipal Toronto land transfer tax brackets and rates. Land transfer tax rates charged on properties in Toronto are the same as the provincial Ontario rates — up until a home value of $2,000,000.
-
First $55,000
$55,000 home value
x 0.50% tax rate
= $275 land transfer tax
-
More than $55,000 up to $250,000
$195,000 home value
x 1.00% marginal tax rate
= $1,950 land transfer tax
-
More than $250,000 up to $400,000
$150,000 home value
x 1.50% marginal tax rate
= $2,250 land transfer tax
-
More than $400,000 up to $2,000,000
$325,000 home value
x 2.00% marginal tax rate
= $6,500 land transfer tax
-
All tiers
$275 + $1,950 + $2,250 + $6,500
= $10,975 total Toronto land transfer tax
Toronto first-time homebuyers land transfer tax rebate example
The land transfer tax rebate in Toronto has a maximum potential rebate of $4,475. To claim the full value of this rebate you must have land transfer tax that is $4,475 or more. We can use the example of a $725,000 home purchase in Toronto which resulted in $10,975 of land transfer tax.
-
Total Municipal Land Transfer Tax (MLTT) after rebate
$10,975 Toronto MLTT tax
- $4,475 Toronto MLTT rebate
= $6,500 Total MLTT
Ontario land transfer tax
Homes that are purchased in Toronto will also be subject to Ontario provincial land transfer tax. This provincial LTT is a marginal tax calculated on the value of the home purchased similar to Toronto's municipal land transfer tax.
A first-time home buyer land transfer tax rebate is also available at the provincial level to first-time buyers who purchase a property in Ontario. The maximum rebate offered by the province is $4,000 which would cover the full land transfer tax on homes valued up to $368,000.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Ontario land transfer tax example
This would be the land transfer tax calculation for a $725,000 home purchased in Ontario using the above Ontario land transfer tax brackets and rates.
-
First $55,000
$55,000 home value
x 0.50% tax rate
= $275 land transfer tax
-
More than $55,000 up to $250,000
$195,000 home value
x 1.00% marginal tax rate
= $1,950 land transfer tax
-
More than $250,000 up to $400,000
$150,000 home value
x 1.50% marginal tax rate
= $2,250 land transfer tax
-
More than $400,000 up to $2,000,000
$325,000 home value
x 2.00% marginal tax rate
= $6,500 land transfer tax
-
All tiers
$275 + $1,950 + $2,250 + $6,500
= $10,975 total Ontario land transfer tax