Toronto is the only city in Ontario where you pay land transfer tax twice — once to the Province and once to the City. On a house along the Bathurst corridor that is routinely the largest cheque you write on closing day after the down payment, and it catches people out because their lawyer mentions it late.
Here is exactly what it costs, at prices that reflect what homes here actually trade for.
You pay it twice
Ontario charges a provincial land transfer tax on every property purchase in the province. Toronto charges a second, municipal land transfer tax on top, at its own rates. Buy in Vaughan or Markham and you pay one. Buy at Bathurst and Lawrence and you pay both.
Both are due on closing. Neither can be added to your mortgage.
The provincial rates
For land containing one or two single family residences:
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
The rates are marginal, not flat. A $1.5 million purchase is not taxed at 2% across the board — each portion is taxed at its own rate, the way income tax brackets work.
The Toronto rates
Toronto mirrors the provincial brackets up to $3 million, then departs sharply. Council amended the high-value rates in December 2025 and the current structure took effect on April 1, 2026:
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
There is also an administration fee of $102.56 plus HST on the municipal side.
What that means at real prices
| Purchase price | Ontario | Toronto | Total |
|---|---|---|---|
| $800,000 | $12,475 | $12,475 | $24,950 |
| $1,500,000 | $26,475 | $26,475 | $52,950 |
| $2,500,000 | $48,975 | $48,975 | $97,950 |
| $3,500,000 | $73,975 | $83,475 | $157,450 |
Two things stand out. Below $3 million the two taxes are identical, so a quick shortcut is to calculate the provincial figure and double it. Above $3 million that shortcut breaks badly — at $3.5 million the municipal side alone is $9,500 higher than the provincial, and the gap widens fast from there.
That $3 million line is worth knowing if you are buying near it. The rate on the portion above $3 million jumps from 2.5% to 4.40%.
First-time buyers
Both governments offer a rebate, and they stack:
- Ontario: up to $4,000
- Toronto: up to $4,475
Combined, that is $8,475 off. On the $800,000 example above, a qualifying first-time buyer pays $16,475 rather than $24,950.
The eligibility rules are strict and largely the same on both sides. You must be at least 18, occupy the home as your principal residence within nine months of closing, never have owned a home or an interest in one anywhere in the world, and be a Canadian citizen or permanent resident. If you have a spouse, their ownership history counts too — if they owned a home while you were married, the rebate is affected.
You have 18 months from closing to apply. Most buyers claim it through their lawyer at closing and never think about it again, but if it was missed, the window is real and it is worth checking.
Budget for it early
Land transfer tax is not the only closing cost, but it is the biggest one and the least flexible. Legal fees, title insurance and adjustments are all negotiable or variable at the margins. This is not — it is a fixed function of the price you agree to.
The practical consequence: when you are working out what you can afford, take it off the top rather than adding it at the end. A buyer with $200,000 saved for a $1.5 million purchase does not have $200,000 for the down payment. They have roughly $147,000, once this is paid.
Common questions
Does the seller pay any land transfer tax?
No. In Ontario it is paid entirely by the buyer.
Can I add land transfer tax to my mortgage?
No. It has to be paid in cash on closing, which is why it belongs in your savings calculation from the beginning.
Do I pay Toronto land transfer tax in North York?
Yes. North York is part of the City of Toronto, so purchases there attract both taxes. The municipal tax applies across the amalgamated city, not just the old City of Toronto boundaries.
Is it based on the purchase price or the assessed value?
The purchase price — specifically the value of the consideration for the transfer, which for an ordinary arm’s-length sale is what you paid.
What if I am buying with someone who has owned before?
The rebate is reduced in proportion to the interest acquired by the qualifying buyer. If one of two buyers qualifies, they can generally claim their share rather than the full amount. Your lawyer should calculate it on the actual ownership split.
Know the number before you bid
Every offer we write for a buyer comes with the closing costs set out in advance, so the number on the agreement is not the number that surprises you three weeks later.
If you are working out what a purchase along the Bathurst corridor actually costs, get in touch. You can also see what is on the market now, or read the latest Eichorn Report for where prices are sitting.
Rates confirmed against the City of Toronto and Government of Ontario at the time of writing, including the municipal changes effective April 1, 2026. This is general information, not tax or legal advice — confirm your own figures with your lawyer before closing.
