Land Transfer Tax in Toronto & the GTA: What You’ll Actually Pay
Land transfer tax (LTT) is the single largest closing cost most GTA buyers underestimate. It’s a one-time tax you pay when a property changes hands, calculated on the purchase price — and if you’re buying inside the City of Toronto, you pay it twice: once to Ontario and once to the city.
This guide breaks down exactly how LTT is calculated across the GTA, what first-time buyers can claim back, and roughly what to budget so there are no surprises on closing day.
Ontario’s provincial land transfer tax
Every home purchase in Ontario is subject to the provincial LTT, calculated on a sliding (marginal) scale. As of 2026 the rates are: 0.5% on the first $55,000; 1% on $55,000–$250,000; 1.5% on $250,000–$400,000; 2% on $400,000–$2,000,000; and 2.5% on anything above $2,000,000 (for homes with one or two single-family residences).
Because it’s marginal, each portion of the price is taxed at its own rate. On an $800,000 home — a typical GTA condo or starter — the provincial LTT works out to roughly $12,475.
Toronto’s municipal land transfer tax (the second one)
If the home is inside the City of Toronto proper (not Mississauga, Vaughan, Markham, or the 905 suburbs), you also pay the Municipal Land Transfer Tax, which broadly mirrors the provincial rates. In practice, that means Toronto buyers pay close to double the LTT of an identical home just outside the city.
Toronto has also added higher luxury tiers on homes above roughly $3 million. On that same $800,000 home, a Toronto buyer pays the provincial LTT plus a municipal LTT of a similar amount — budgeting near $25,000 total is realistic.
This is one reason many GTA buyers compare Toronto against neighbouring 905 cities: the same home in Vaughan or Mississauga skips the municipal tax entirely.
First-time buyer rebates
First-time buyers get meaningful relief. The Ontario rebate refunds up to $4,000 of provincial LTT — enough to fully cover the tax on a home up to about $368,000, and to reduce it on anything above that.
First-time buyers purchasing inside Toronto also qualify for a municipal rebate of up to $4,475. Combined, an eligible first-time Toronto buyer can claim back well over $8,000.
To qualify you generally must be at least 18, never have owned a home anywhere in the world, and move in within nine months. If you’re buying with a partner who has owned before, your rebate may be reduced.
What to budget
A good rule of thumb: outside Toronto, budget roughly 1–2% of the purchase price for LTT; inside Toronto, closer to 2.5–3.5%. That’s on top of your down payment, legal fees, title insurance, and moving costs.
LTT is due on closing and generally cannot be rolled into your mortgage, so it needs to be cash you have available. Your real estate lawyer calculates the exact amount and applies any rebate automatically.
This article is general information, not financial, tax, or legal advice. Rates and program rules are current as of 2026 and can change — confirm the specifics with a qualified professional or your real estate lawyer before making decisions.