Ontario & Toronto Land Transfer Tax (LTT & MLTT): 2026 First-Time Buyer Rebate Guide

When purchasing real property in the Province of Ontario, Land Transfer Tax (LTT) represents the largest single cash closing expense required at settlement, over and above your down payment.

The most critical jurisdictional question in Ontario property acquisition is: Is the property situated within the municipal boundaries of the City of Toronto?

• Rest of Ontario (Mississauga, Ottawa, Hamilton, Markham, Oakville, etc.): Subject only to the Ontario Provincial Land Transfer Tax.
• City of Toronto (Postal code starting with M): Subject to BOTH the Ontario Provincial Land Transfer Tax AND the City of Toronto Municipal Land Transfer Tax (MLTT).

This effectively doubles the transfer tax liability for homebuyers purchasing property in Toronto.

Provincial Land Transfer Tax applies progressively across five statutory brackets:

• 0.5% on the first $55,000 of the purchase price.
• 1.0% on the portion between $55,000 and $250,000.
• 1.5% on the portion between $250,000 and $400,000.
• 2.0% on the portion between $400,000 and $2,000,000.
• 2.5% on the portion exceeding $2,000,000 (for residential properties containing one or two single-family residences).

Under the City of Toronto Act, 2006, City Council levies its own Municipal Land Transfer Tax. In recent budgets, Toronto Council expanded higher-tier brackets for high-value homes:

• Standard brackets mirror the provincial rates up to $2,000,000 (0.5% to 2.0%).
• $2,000,000 to $3,000,000: 2.5%
• $3,000,000 to $4,000,000: 3.5%
• $4,000,000 to $5,000,000: 4.5%
• $5,000,000 to $10,000,000: 5.5%
• $10,000,000 to $20,000,000: 6.5%
• Over $20,000,000: 7.5%

This means a $4,000,000 home in Toronto is subject to $86,475 in provincial tax plus $96,475 in Toronto municipal tax, totaling $182,950 in land transfer duties.

To assist purchasers entering the housing market, both levels of government provide statutory rebates:

1. 1Ontario Provincial Rebate: Covers up to $4,000.00. For homes priced at $368,333 or less, the buyer pays zero provincial tax. Above $368,333, the buyer receives the full $4,000 credit against the total provincial tax due.
2. 2Toronto Municipal Rebate: Covers up to $4,475.00. For homes priced at $400,000 or less, the buyer pays zero municipal tax. Above $400,000, the full $4,475 rebate is credited.
3. 3Combined Maximum Relief: A qualifying first-time homebuyer purchasing in the City of Toronto receives $8,475.00 in combined rebates.

The Ontario Ministry of Finance and City of Toronto enforce strict statutory conditions:

• Age: The purchaser must be at least 18 years of age.
• Residency: Must be a Canadian citizen or permanent resident of Canada.
• Occupancy: Must occupy the home as your principal residence within nine months of registration.
• Prior Ownership: You must NEVER have owned an eligible home, or an interest in an eligible home, anywhere in the world.
• Spouse Disqualification: If you have a spouse, your spouse must not have owned an eligible home anywhere in the world during the time they were your spouse.

Example A: $800,000 Home in Toronto (First-Time Buyer)

• Provincial LTT Calculation:
  • First $55k @ 0.5% = $275
  • $55k–$250k @ 1.0% = $1,950
  • $250k–$400k @ 1.5% = $2,250
  • $400k–$800k ($400k @ 2.0%) = $8,000
  • Total Provincial LTT = $12,475
  • Less Provincial First-Time Buyer Rebate: -$4,000
  • Net Provincial LTT: $8,475
• Toronto Municipal MLTT Calculation:
  • Gross MLTT = $12,475
  • Less Toronto First-Time Buyer Rebate: -$4,475
  • Net Toronto MLTT: $8,000
• Total Combined Tax Due on Closing: $8,475 + $8,000 = $16,475

(A repeat buyer would pay $24,950 for the identical home).

Example B: $1,500,000 Home in Ottawa (Non-First-Time Buyer)

• Ottawa is outside Toronto, so only provincial tax applies.
• $0 to $400k = $4,475
• $400k to $1.5M ($1,100,000 @ 2.0%) = $22,000
• Total Tax Due on Closing: $26,475

Under Ontario's More Homes for Everyone Act, foreign entities and foreign nationals who purchase residential property anywhere in Ontario are subject to the 25% Non-Resident Speculation Tax (NRST).

• The NRST is paid in addition to standard provincial and municipal land transfer taxes.
• On an $800,000 purchase, a foreign national owes an extra $200,000 in NRST upon registration.

Land transfer taxes cannot be rolled into or financed within your mortgage balance. They must be paid in certified funds or via trust transfer through your real estate lawyer on the day of closing before the Land Registry Office releases the deed.

Below are answers to common questions regarding Ontario and Toronto property transfer taxes.