Land transfer tax in Ontario and Toronto, explained
Ontario taxes every home purchase on a sliding scale. Inside the City of Toronto a second, municipal tax applies on top. Here are the 2026 rates, the rebates and what they come to at real prices.
By Mehran Salehian, Sales Representative · Reviewed October 2026
Ontario rates
| Part 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 (homes with one or two units) | 2.5% |
City of Toronto rates
Toronto's municipal tax uses the same steps up to $3 million. For homes that close on or after April 1, 2026, the rates above $3 million are higher:
| Part of the price | Rate |
|---|---|
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.4% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.5% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.6% |
Toronto also charges a small administration fee on each transfer.
What it comes to
| Price | Outside Toronto | In Toronto | Toronto, first-time buyer |
|---|---|---|---|
| $500,000 | $6,475 | $13,066 | $4,591 |
| $750,000 | $11,475 | $23,066 | $14,591 |
| $1,000,000 | $16,475 | $33,066 | $24,591 |
| $1,500,000 | $26,475 | $53,066 | $44,591 |
| $2,500,000 | $48,975 | $98,066 | $89,591 |
| $3,500,000 | $73,975 | $157,566 | $149,091 |
First-time buyer rebates
- Ontario: up to $4,000, which covers the full tax on a home up to about $368,000.
- Toronto: up to $4,475, which covers the full municipal tax on a home up to about $400,000.
To qualify you must generally be 18 or older, a Canadian citizen or permanent resident, live in the home as your principal residence within nine months, and never have owned a home (or part of one) anywhere in the world. If your spouse owned a home while you were together, you don't qualify. Your lawyer usually claims the rebates on closing.
Things that surprise buyers
- Land transfer tax is due in cash on closing; it can't be added to your mortgage.
- Buyers who are not citizens or permanent residents may also owe Ontario's Non-Resident Speculation Tax, which is far higher. Get legal advice before you make an offer.
- Homes in Mississauga, Vaughan, Markham and the rest of the GTA pay only the Ontario tax, which is one reason buyers compare across city lines.
Sources: Ontario Ministry of Finance, City of Toronto.
How the tax is worked out, step by step
Land transfer tax is charged in slices. Each slice of the price is taxed at its own rate, and the slices are added together. Here is a $900,000 home inside Toronto, worked by hand:
- First $55,000 at 0.5% = $275
- Next $195,000 (up to $250,000) at 1.0% = $1,950
- Next $150,000 (up to $400,000) at 1.5% = $2,250
- Remaining $500,000 (up to $900,000) at 2.0% = $10,000
That adds up to $14,475 of Ontario tax. Toronto's municipal tax uses the same steps at this price, so it is another $14,475, for $28,950 in total. A first-time buyer who qualifies for both rebates subtracts $4,000 and $4,475 and pays $20,475. The same home in Mississauga or Markham would pay only the Ontario $14,475, or $10,475 for a first-time buyer.
A quick check you can do in your head: for any home between $400,000 and $2 million, the Ontario tax is 2% of the price minus $4,525. At $900,000 that's $18,000 − $4,525 = $14,475.
Who counts as a first-time buyer here
The land transfer tax rebates have their own test, and it is stricter than the one for other first-time buyer programs. To get Ontario's refund (Ontario Ministry of Finance):
- You must be at least 18.
- You must be a Canadian citizen or permanent resident.
- You must live in the home as your principal residence within nine months.
- You must never have owned a home, or any interest in one, anywhere in the world.
- Your spouse must not have owned a home while married to you or living with you.
Toronto's rebate uses the same tests. It also lets a buyer who becomes a citizen or permanent resident within 18 months of the transfer apply (City of Toronto).
Compare that with the federal programs. For the FHSA, the Home Buyers' Plan and 30-year insured mortgages, you generally qualify if you haven't lived in a home you or your spouse owned in the current year or the previous four (CRA: Home Buyers' Plan; Finance Canada). Someone who sold a condo six years ago can use the FHSA but won't get the land transfer tax rebates.
Buying with someone who doesn't qualify
If one buyer qualifies and the other doesn't, Ontario's refund is reduced in proportion to the share of the home owned by the qualifying buyers. On a 50/50 purchase, expect about half of the $4,000. Your lawyer will work out both rebates from how title is held, so decide that with your lawyer before closing.
Common mistakes
- Thinking the rebate is a cheque that comes later. Usually your lawyer claims it on registration and it simply reduces the tax you pay. If that doesn't happen, Ontario and Toronto each allow you to apply within 18 months of registration.
- Not keeping proof that you moved in. Toronto may ask for proof of occupancy within nine months, such as a phone or cable bill or a driver's licence with the new address. Utility and property tax bills aren't accepted.
- Missing the Toronto boundary. Scarborough, Etobicoke, North York, York and East York are all inside the City of Toronto and pay the municipal tax.
- Overlooking speculation taxes. Buyers who aren't citizens or permanent residents may owe Ontario's 25% Non-Resident Speculation Tax (Ontario). Since January 1, 2025, they may also owe Toronto's 10% Municipal Non-Resident Speculation Tax (City of Toronto). Toronto's tax can be rebated in limited cases, such as becoming a permanent resident within four years, in line with the provincial rules. Get legal advice before you sign.
Frequently asked questions
Is land transfer tax charged on the price including HST for a new home?
No. Ontario says the value used for the tax does not include the HST paid on the purchase price. It can include upgrades and some "soft costs", such as charges listed in the builder's schedule (Ontario Ministry of Finance). New-home agreements set out these items in different ways, so ask your lawyer to confirm the taxable value from yours.
Do I pay land transfer tax on a duplex, triplex or sixplex?
Yes. Up to $2 million, Ontario charges the same rates on all land. Above $2 million, land with one or two single-family residences pays 2.5%, and other land stays at 2.0% (Ontario Ministry of Finance). Toronto's rates and rebate rules also depend on the property type. If you're buying a multi-unit property, have your lawyer run the numbers before you make an offer.
Can I get the rebates if I'm buying a home to rent out?
No. Both rebates require you to live in the home as your principal residence within nine months.
Does the rebate cover the whole tax?
Only on lower-priced homes. Ontario's $4,000 covers the full provincial tax up to about $368,000, and Toronto's $4,475 covers the full municipal tax up to about $400,000. Above that you pay the difference.
When is the tax paid?
On closing day. Your lawyer collects it from you with the rest of your closing funds and pays it when the transfer is registered.
What's changed in 2025–2026
- January 1, 2025: Toronto's 10% Municipal Non-Resident Speculation Tax took effect.
- April 1, 2026: Higher Toronto rates apply above $3 million for homes closing on or after this date, in steps up to 8.6% over $20 million (see the table above).
- No change to the first-time buyer rebate amounts: as of October 2026, they remain up to $4,000 from Ontario and up to $4,475 from Toronto.
Try your own numbers in the land transfer tax calculator.
This guide is general information, not legal, tax or financial advice. Rules and rates change; confirm the details with your lawyer, lender or accountant.