Short answer: Buyers in Toronto pay two land transfer taxes: Ontario's and the City of Toronto's. On an $800,000 home the combined tax is $24,950. Eligible first-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto. Toronto added higher rates for homes over $3 million on April 1, 2026.
Two taxes, paid on closing
Every buyer of property in Ontario pays the provincial land transfer tax. If the property is in the City of Toronto, the buyer also pays the Municipal Land Transfer Tax. Both are calculated on the purchase price, are due on closing and are usually paid through your real estate lawyer as part of registering the transfer.
Ontario land transfer tax rates
| Portion of the price | 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 (one or two single family residences) | 2.5% |
Toronto municipal land transfer tax rates from April 1, 2026
For properties with one or two single family residences, the City of Toronto applies these rates:
| Portion of the price | 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% |
Worked examples
| Purchase price | Ontario tax | Toronto tax | Total |
|---|---|---|---|
| $600,000 | $8,475 | $8,475 | $16,950 |
| $800,000 | $12,475 | $12,475 | $24,950 |
| $1,000,000 | $16,475 | $16,475 | $32,950 |
| $1,500,000 | $26,475 | $26,475 | $52,950 |
| $2,500,000 | $48,975 | $48,975 | $97,950 |
| $3,500,000 | $73,975 | $83,475 | $157,450 |
These figures are before any first-time buyer rebates and are for homes with one or two single family residences. Commercial and other property types use different rules.
First-time buyer rebates
A first-time buyer can receive a refund of up to $4,000 of the Ontario tax and a rebate of up to $4,475 of the Toronto tax, for a combined maximum of $8,475. On an $800,000 home, that brings the combined tax down to $16,475. In general you must:
- be at least 18 and have never owned a home, or an interest in one, anywhere in the world
- not have a spouse who owned a home while they were your spouse
- occupy the home as your principal residence within nine months of buying it
- for the Ontario refund, be a Canadian citizen or permanent resident, or become one within 18 months
Your lawyer usually claims both rebates at registration, so they reduce what you pay on closing.
Other taxes that can apply
- Non-Resident Speculation Tax: foreign nationals and certain foreign entities buying residential property in Ontario pay an additional 25 percent provincial tax, subject to limited exemptions.
- Federal restrictions: a federal prohibition on most purchases of residential property by non-Canadians is in place, with exceptions.
- HST on new homes: new construction is subject to HST, usually built into the price with rebates assigned to the builder.
Land transfer tax is the largest closing cost, but not the only one. See our guide to closing costs in Ontario for first-time buyers.
Frequently asked questions
How much is land transfer tax on a $1 million home in Toronto?
About $32,950 in total: $16,475 to Ontario and $16,475 to the City of Toronto, before any first-time buyer rebates.
Do first-time buyers pay land transfer tax in Toronto?
Yes, but eligible first-time buyers receive up to $4,000 back from Ontario and up to $4,475 from Toronto, which removes the tax entirely on lower priced homes.
What changed in Toronto land transfer tax in 2026?
From April 1, 2026, Toronto applies higher graduated rates to the portion of the price over $3 million, rising from 4.40 percent to 8.60 percent over $20 million.
When is land transfer tax paid?
On closing, usually through your real estate lawyer when the transfer is registered.
Do you pay Toronto land transfer tax outside Toronto?
No. The municipal tax applies only to property in the City of Toronto. Buyers in the rest of Ontario pay only the provincial tax.
Talk to our team
This guide is general information, not legal advice. For advice on your situation, see our real estate lawyer in Toronto page. To book a paid consultation (30 minutes, $150 plus HST, paid when you book), book online or call (647) 271-1646. The phone is answered 24 hours a day, 7 days a week, and office meetings are by appointment. Civitas Law is a team of legal professionals under the leadership of lawyer Nasibeh Mehrpouyan, serving clients in English, French, Farsi, Russian and Serbian.