Buy a home almost anywhere in Ontario and you pay one land transfer tax. Buy inside the City of Toronto and you pay it twice — once to the province and again to the city. This municipal land transfer tax (MLTT) effectively doubles one of your biggest closing costs, so it's worth understanding before you make an offer. Here's exactly how it works and what it'll cost you.
Key takeaways
Toronto's MLTT is charged in addition to Ontario's provincial land transfer tax.
It mirrors the provincial rates up to $3,000,000, with extra luxury tiers above that.
On a $500,000 Toronto home you pay roughly $6,475 provincial PLUS $6,475 municipal LTT.
Toronto first-time buyers can claim a municipal rebate of up to $4,475 on top of the provincial one.
Only the City of Toronto charges this — 905 cities like Vaughan and Mississauga do not.
Why Toronto buyers pay twice
Every Ontario buyer pays the provincial land transfer tax. Since 2008, the City of Toronto has charged its own Municipal Land Transfer Tax (MLTT) on top of it — a second tax of roughly the same size on any property within the city's boundaries. The result is often called the 'double land transfer tax.'
Toronto only
The MLTT applies strictly to homes inside the City of Toronto. Buy in a 905 municipality such as Mississauga, Vaughan, Markham or Hamilton and you pay only the single provincial tax.
Toronto MLTT rates
The municipal tax uses the same marginal-bracket structure as the province up to $3,000,000, then adds higher luxury tiers for the most expensive homes. As with the provincial tax, each slice of the price is taxed at its own rate.
Toronto MLTT brackets (mirrors provincial up to $3M)
Portion of purchase price
Marginal rate
Up to $55,000
0.5%
$55,001 – $250,000
1.0%
$250,001 – $400,000
1.5%
$400,001 – $2,000,000
2.0%
$2,000,001 – $3,000,000
2.5%
Over $3,000,000
Additional luxury tiers apply
What the double tax really costs
Because Toronto's tax mirrors the province up to $3M, your total land transfer tax is essentially double the provincial figure. Here's the combined bill at common price points, before any first-time buyer rebate.
Total land transfer tax on a Toronto home (provincial + municipal, before rebates)
$500,000$12,950
$800,000$24,950
$1,000,000$32,950
$1,500,000$52,950
Combined provincial + municipal LTT. A $500,000 home pays roughly $6,475 of each.
On that $500,000 home, you're looking at about $6,475 provincial + $6,475 municipal = $12,950 in total land transfer tax. To see the full picture alongside legal fees and title insurance, read our complete closing-costs breakdown or run the numbers in the closing cost calculator.
The Toronto first-time buyer rebate
Toronto softens the blow for first-time buyers with its own municipal rebate of up to $4,475 — claimed in addition to the provincial rebate of up to $4,000. Combined, a qualifying first-time buyer can save up to $8,475 across both taxes.
up to $4,000
Provincial rebate
up to $4,475
Toronto municipal rebate
up to $8,475
Combined first-time saving
Both rebates stack
Eligibility mirrors the provincial rules — you must be 18+, a first-time owner, and buying a home you'll live in. Your lawyer typically applies both rebates at closing. See the full criteria in our land transfer tax rebate guide.
How HOMEH offsets the double tax
Toronto's double land transfer tax is unavoidable — but it doesn't have to be the end of the math. The commission savings on your purchase can more than make up for it.
The industry's highest Cashback Rebate
HOMEH gives eligible Toronto buyers the industry's highest Cashback Rebate — enough to cover the double land transfer tax many times over. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator.
Key takeaways
