Ontario Land Transfer Tax and Toronto Municipal Land Transfer Tax
Overview
Anyone who buys or acquires land in Ontario pays Land Transfer Tax (LTT) to the province when the transfer is registered. If the property is located within the City of Toronto, the buyer pays a second, municipal Land Transfer Tax (MLTT) on top of the provincial tax. The two taxes are calculated separately but on the same value, so a Toronto purchase is taxed roughly twice compared with the rest of Ontario.
Both taxes are calculated on the value of consideration — generally the purchase price, including the amount of any remaining mortgage or debt assumed, and the value of any benefit conferred.
Both taxes use a marginal (graduated) bracket structure: each rate applies only to the portion of the price that falls inside that bracket, not to the whole price.
Provincial Land Transfer Tax rates
For transfers where the agreement of purchase and sale was entered into after November 14, 2016, the provincial rates are (verify current rates at ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax):
| Portion of the value of consideration | Rate |
|---|---|
| Up to and including $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| Over $400,000 | 2.0% |
| Over $2,000,000 (where the land contains one or two single-family residences) | 2.5% |
The 2.5% top bracket applies only to land that contains one or two single-family residences (for example a detached house, semi, or condo unit). Other property types (such as commercial land or land with more than two residences) top out at the 2.0% bracket.
Quick-calculation formulas (provincial)
The Ministry publishes shortcut formulas, where VOC = value of consideration (verify at the source):
- $0 to $55,000: LTT = VOC × 0.005
- $55,000.01 to $250,000: LTT = (VOC × 0.01) − $275
- $250,000.01 to $400,000: LTT = (VOC × 0.015) − $1,525
- Over $400,000 (non–single-family): LTT = (VOC × 0.02) − $3,525
- Over $2,000,000 (one or two single-family residences): LTT = (VOC × 0.025) − $13,525
Toronto Municipal Land Transfer Tax (MLTT)
Property in the City of Toronto attracts the MLTT in addition to the provincial LTT. For standard purchases the Toronto rates mirror the provincial structure. As of the December 17, 2025 City Council amendment, Toronto layers additional upper-end "luxury" brackets onto high-value homes.
Standard MLTT rates (non–single-family residences and lower-value homes)
Verify current rates at toronto.ca:
| Portion of the value of consideration | Rate |
|---|---|
| Up to and including $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| Over $400,000 | 2.0% |
High-value single/two-family residences — effective April 1, 2026
For land containing one or two single-family residences, Toronto adds graduated upper brackets above $2,000,000 (verify current rates at toronto.ca — these took effect April 1, 2026 and range from 4.40% to 8.60% on the top portions):
| Portion of the value of consideration | Rate |
|---|---|
| Up to and including $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% |
| $2,000,000.01 to $3,000,000 | 2.5% |
| $3,000,000.01 to $4,000,000 | 4.40% |
| $4,000,000.01 to $5,000,000 | 5.45% |
| $5,000,000.01 to $10,000,000 | 6.50% |
| $10,000,000.01 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
Because these apply marginally, only the slice of price inside each bracket is taxed at that bracket's rate.
First-time homebuyer rebates
Ontario and Toronto each offer a separate first-time buyer refund, so an eligible buyer of a Toronto home can claim both.
- Provincial refund maximum: $4,000 (for conveyances on or after January 1, 2017). This fully offsets the provincial LTT on a home priced up to roughly $368,000; above that, the buyer pays the tax on the excess. Verify at ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers.
- Toronto MLTT rebate maximum: $4,475 — enough to cover the municipal tax on the first $400,000 of value. Verify at toronto.ca.
Eligibility (provincial refund)
To qualify (verify current criteria at the source):
- Be at least 18 years old.
- Be a Canadian citizen or permanent resident when the transaction closes (there is generally an 18-month window to obtain that status after closing).
- Never have owned an eligible home, or an interest in one, anywhere in the world, at any time.
- The buyer's spouse must not have owned a home (or an interest in one) anywhere in the world while they were each other's spouse.
- Occupy the home as a principal residence within nine months of the transfer.
- Apply within 18 months of the date of registration.
The Toronto MLTT rebate uses substantially the same first-time-buyer conditions; confirm details with the City of Toronto.
Worked example
Example: $400,000 home elsewhere in Ontario (not Toronto), non-first-time buyer.
- First $55,000 × 0.5% = $275
- Next $195,000 ($55,000.01–$250,000) × 1.0% = $1,950
- Next $150,000 ($250,000.01–$400,000) × 1.5% = $2,250
- Total provincial LTT = $4,475
Same $400,000 home located in Toronto. The buyer also pays the Toronto MLTT, which at this price mirrors the provincial calculation: an additional $4,475, for roughly $8,950 in combined land transfer tax.
If that Toronto buyer is a first-time homebuyer, the provincial refund (up to $4,000) and the Toronto rebate (up to $4,475) would offset most or all of the tax on a $400,000 purchase — verify eligibility and current maxima before assuming a specific net amount.
(All figures illustrative; confirm brackets, rates, and rebate amounts at the Ontario Ministry of Finance and City of Toronto before relying on them.)