How Much is Land Transfer Tax in Ontario?

Land Transfer Tax (LTT) is one of the related costs of buying a house in Ontario. If you are approaching a home purchase, it is important to understand how LTT works, when it’s paid, and how you can budget for it appropriately.

Buying real estate in Toronto? Our strategic advisory services can help you make a seamless purchase. Call us at 416-722-4723 or reach us by email at evan@christensengroup.ca.

Who Pays Land Transfer Tax?

In a real estate transaction, the Land Transfer Tax is paid by the buyer.

While all homebuyers in Ontario must pay LTT, some may be eligible for high relief rebates. For example, qualifying first-time home buyers in Ontario can apply for a rebate up to $4,000 on the provincial LTT. Further rebates on the MLTT are available to eligible first-time buyers in Toronto, up to a maximum of $4,475.

When Do You Pay Land Transfer Tax?

Land Transfer Tax is paid when the house is officially registered under the buyer’s name. This typically happens on closing day. Rather than make a payment to the province directly, buyers typically pay the LTT through their real estate lawyer.

Preparing to buy a house in Toronto? Consider these additional real estate resources.

How Much is Land Transfer Tax in Ontario?

Rather than follow a ‘flat fee’ model, Land Transfer Taxes are calculated based on a percentage of a home’s value. Similar to basic property taxes, these percentages differ based on the relevant valuation bracket of a particular property.

Land Transfer Tax rates in Ontario

Homes up to $55,000 | 0.5%
Homes valued $55,000.01 to $250,000 | 1.0%
Homes valued $250,000.01 to $400,000 | 1.5%
Homes valued $400,000.01 to $2,000,00 | 2.0%
Homes valued over $2,000,000* | 2.5%

City vs Provincial Land Transfer Tax

Home buyers in Toronto are subject to a second phase of taxation, known as the Municipal Land Transfer Tax (MLTT). This is in addition to the standard provincial Land Transfer Tax. Like the provincial LTT, Toronto’s MLTT structure is also subject to evolution and change.

Toronto is the only municipality in Ontario to enforce an MLTT. Therefore, it is advisable for buyers who are new to the city to familiarize themselves with it. This Land Transfer Tax calculator can help estimate your costs.

Toronto’s Municipal Land Transfer Tax Rates 2026

Toronto’s MLTT rates for properties valued up to $3,000,000 are:

Homes up to $55,000 | 0.5%
Homes valued $55,000.01 to $250,000 | 1.0%
Homes valued $250,000.01 to $400,000 | 1.5%
Homes valued $400,000.01 to $2,000,00 | 2.0%
Homes valued over $2,000,000* | 2.5%

* Up to $3,000,000

Note: City Hall charges a one-time administration fee for all MLTT payments. As of 2026, this fee is $102.56 + HST.

Changes to Toronto’s Municipal Land Transfer Tax For 2026

Unchanged from 2025, the above rates will apply to qualifying residential properties purchased in Toronto this year. However, City Hall recently announced updated MLTT rates for homes beyond these valuation brackets. These changes will be formally instated on April 1st of 2026, and apply only to real estate purchased (closed) after this date.

Who is Impacted?

While every property purchased in Toronto is subject to Municipal Land Transfer Tax, the recent revisions only impact certain homes. Specifically, those deemed to be high-value residential properties by City Hall. To put it simply:

If you purchase a home valued at more than $3,000,000, you will face a higher MLTT rate in 2026.*
If you purchase a home valued at less than $3,000,000, you will not face a higher MLTT rate in 2026.

*Graduated rates apply to properties containing at least one, and not more than two, single-family residences. Larger properties, such as small and large-scale apartment buildings, remain subject to MLTT, however, under a separate designation and bracket.

Searching for strategic guidance on buying a home? Consider these related readings for more insights.

Municipal Land Transfer Tax Rates For High Value Residential Properties

Homes over $3,000,000 and up to $4,000,000 | 4.40%
Homes over $4,000,000 and up to $5,000,000 | 5.45%
Homes over $5,000,000 and up to $10,000,000 | 6.50%
Homes over $10,000,000 and up to $20,000,000 | 7.55%
Homes over $20,000,000 | 8.60%

Buy With Christensen Group

If you’re looking for clarity on how taxation may impact your real estate purchase, it’s best to speak to an expert. At Christensen Real Estate Group, we’ve been helping wealth-savvy homeowners build equity and protect their investments for more than four decades.

Whatever you’re looking to accomplish, our informed advisory services can give you an upper hand in one of the world’s most cutthroat housing markets.

Looking to break into the West Toronto market? Our team of industry insiders can help you reach your home-buying goals. Call us at 416.772.4723 or reach us by email at evan@christensengroup.ca.