Why Toronto Buyers Pay Land Transfer Tax Twice (2026 MLTT Rates)
Toronto charges a municipal land transfer tax on top of Ontario’s, doubling the bill: $40,950 on a $1.2 million home versus $20,475 in Mississauga..
Toronto is the only municipality in Ontario permitted to charge its own land transfer tax, and it does, using the same brackets as the province up to $3 million, then much steeper ones. Every purchase inside the City of Toronto pays both: $12,950 on a $500,000 condo, $40,950 on a $1.2 million house. The same house one street into Mississauga or Vaughan pays half. First-time buyers get up to $4,475 back from the city on top of Ontario's $4,000.
Figures come from the CostToClose land transfer tax calculator, using the City of Toronto rates in force since 1 April 2026.
The 2026 municipal brackets
| Portion of price | Toronto MLTT rate | Ontario rate |
|---|---|---|
| First $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% | 2.5% |
| $4,000,000 to $5,000,000 | 5.45% | 2.5% |
| $5,000,000 to $10,000,000 | 6.50% | 2.5% |
| $10,000,000 to $20,000,000 | 7.55% | 2.5% |
| Above $20,000,000 | 8.60% | 2.5% |
Source: City of Toronto, Municipal Land Transfer Tax; luxury tiers introduced January 2024 and raised effective 1 April 2026. The tiers above $2 million apply to one- or two-unit residential property, including condos. Checked 14 September 2026.
What the two taxes add up to
| Price | Ontario | Toronto MLTT | Total in Toronto | Total outside Toronto |
|---|---|---|---|---|
| $500,000 | $6,475 | $6,475 | $12,950 | $6,475 |
| $800,000 | $12,475 | $12,475 | $24,950 | $12,475 |
| $1,200,000 | $20,475 | $20,475 | $40,950 | $20,475 |
| $2,500,000 | $48,975 | $48,975 | $97,950 | $48,975 |
| $3,500,000 | $73,975 | $83,475 | $157,450 | $73,975 |
| $4,500,000 | $98,975 | $132,725 | $231,700 | $98,975 |
| $6,000,000 | $136,475 | $224,975 | $361,450 | $136,475 |
This example was computed with the CostToClose calculator, 14 September 2026, repeat buyer.
Below $3 million the municipal tax is an exact copy of the provincial one. Above it the copy stops: at $6 million the city takes $225,000 against the province's $136,000.
Where the boundary is
The tax applies to property inside the City of Toronto as amalgamated in 1998: Old Toronto, Scarborough, North York, Etobicoke, York and East York. It does not apply in Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Pickering or Ajax. A postal code beginning with M is inside; L is outside. Real estate listings that say "Toronto" for a Vaughan address are describing the region, not the tax.
The first-time buyer rebate
Toronto rebates up to $4,475 of its tax to first-time buyers, the full municipal tax on a home up to $400,000. The eligibility rules match Ontario's: never owned a home anywhere in the world, occupy within nine months, spouse has not owned while your spouse. Combined with the provincial $4,000, a first-time buyer's relief in Toronto is $8,475.
Worked example from the calculator
First-time buyer, $700,000 condo in North York, versus the same condo in Mississauga:
| Metric | North York (Toronto) | Mississauga |
|---|---|---|
| Ontario land transfer tax | $10,475 | $10,475 |
| Toronto MLTT | $10,475 | — |
| Ontario rebate | −$4,000 | −$4,000 |
| Toronto rebate | −$4,475 | — |
| Tax on closing | $12,475 | $6,475 |
Six thousand dollars for the address. Reproduce this.
What changes the number
- Crossing $3 million. The municipal rate almost doubles from 2.5% to 4.40% on the next slice.
- First-time status. Worth $8,475 combined, but only up to $400,000 fully.
- Multi-unit or commercial. The luxury tiers apply only to one- and two-unit residential; a fourplex over $2 million stays at 2%.
- Non-resident buyers also owe Ontario's 25% non-resident speculation tax, if the federal ban does not already prevent the purchase.
Who this covers
This is for one- or two-unit residential property inside the City of Toronto's amalgamated boundary. The luxury tiers above $2 million apply only to that property type. A three-unit or larger building, or commercial property, follows a different schedule not shown here.
What this doesn't include
- A definitive address lookup. The postal-code rule of thumb (M inside, L outside) is a starting point, not a legal determination. Some addresses sit close enough to the boundary that only your lawyer's title search confirms which municipality applies.
- Multi-unit (three or more units) or commercial property, which stays on the standard 2% rate above $2 million rather than the luxury tiers shown here.
- The full non-resident speculation tax calculation. This page notes it applies but doesn't walk through the math; that's a separate 25% tax on top of everything shown here.
- How the rebate declaration is actually filed at a specific law firm. It's not automatic. Your lawyer has to know you qualify and file for it.
Questions worth asking a professional
- Confirm with your lawyer whether your specific address is inside Toronto's boundary before assuming either way from the postal code alone.
- If you're buying near the $3 million threshold, ask your lawyer to confirm exactly which luxury tier bracket applies to your purchase price.
- If you qualify as a first-time buyer, confirm your lawyer has actually filed the rebate declaration. Ask to see it, don't assume it's automatic.
- Buying a multi-unit property? Confirm with your lawyer whether the luxury tiers apply to your specific unit count before budgeting for them.
Frequently asked questions
How much is land transfer tax on a $1 million house in Toronto?
$32,950: $16,475 to Ontario and $16,475 to the City of Toronto. A first-time buyer pays $24,475 after both rebates.
Does Mississauga have a municipal land transfer tax?
No. Only the City of Toronto has one. Every other Ontario municipality charges just the provincial tax.
Is the Toronto land transfer tax rebate automatic?
Your lawyer claims it at closing by filing the rebate declaration with the tax return. It is not automatic; make sure your lawyer knows you qualify.
Did Toronto's land transfer tax go up in 2026?
Yes, for homes over $3 million. The rates on the portion above $3 million rose on 1 April 2026 to 4.40% through 8.60%. Rates below $3 million are unchanged.
Can I avoid the Toronto tax by buying just outside the city?
Yes — and buyers do. The difference is $20,475 on a $1.2 million purchase, which is usually more than the price gap between neighbouring streets across the boundary.
Sources
- City of Toronto, Municipal Land Transfer Tax rates and rebates, effective 1 April 2026 — checked 14 Sept 2026
- City of Toronto Act, 2006, Part X — checked 14 Sept 2026
- Ontario Ministry of Finance, Land Transfer Tax — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.