buying
Toronto's New Land Transfer Tax Rates (April 2026)
Published July 2, 2026 · By YYZ Mortgage
Buying a high-end home in the City of Toronto? Or selling one? Your closing costs changed a lot this spring. Toronto City Council voted on December 17, 2025. The vote raised the city’s land transfer tax (MLTT). The higher rates hit homes priced over $3 million. They took effect for closings on or after April 1, 2026.
Here is what changed and who pays. Plus the timing detail that trips people up.
The new rates at a glance
Toronto’s MLTT is a city tax. You pay it on top of Ontario’s land transfer tax. Both taxes work in steps. Each rate hits only the slice of price in its band. The April 2026 change raised the bands above $3 million. This is for homes that hold one or two single-family residences:
| Slice of purchase price | MLTT rate (from Apr 1, 2026) | Old rate (2024–Mar 2026) |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 – $250,000 | 1.0% | 1.0% |
| $250,000 – $400,000 | 1.5% | 1.5% |
| $400,000 – $2,000,000 | 2.0% | 2.0% |
| $2,000,000 – $3,000,000 | 2.5% | 2.5% |
| $3,000,000 – $4,000,000 | 4.40% | 3.5% |
| $4,000,000 – $5,000,000 | 5.45% | 4.5% |
| $5,000,000 – $10,000,000 | 6.50% | 5.5% |
| $10,000,000 – $20,000,000 | 7.55% | 6.5% |
| Over $20,000,000 | 8.60% | 7.5% |
The Ontario brackets did not change. They run from 0.5% to 2%. There is also 2.5% on the part over $2 million. That extra step is for homes with one or two single-family residences.
Run your own numbers: try our land transfer tax calculator. It uses the current 2026 brackets for both taxes. It counts first-time buyer rebates too. It is free. No email is needed.
What this means in dollars
Illustrative examples (provincial + city tax added up, no rebates):
| Purchase price | Combined LTT before Apr 2026 | Combined LTT from Apr 2026 | Increase |
|---|---|---|---|
| $2,500,000 | ~$99,475 | ~$99,475 | $0 |
| $3,500,000 | ~$156,475 | ~$160,975 | ~$4,500 |
| $5,000,000 | ~$247,975 | ~$266,475 | ~$18,500 |
| $8,000,000 | ~$427,975 | ~$476,475 | ~$48,500 |
Under $3 million, nothing changed. Above it, the extra tax grows fast. Take an $8 million home. The change alone costs about the price of a car.
The timing trap: closing date, not signing date
What sets the tax? The day the transfer is registered — your closing date. The day you signed the deal does not matter. Say a buyer signed in February 2026. The deal closed April 15, 2026. That buyer pays the new rates. Working out a luxury deal? Can the closing date move? Then that date is now a real money item in the talks. Ask your real estate lawyer about it.
Who pays more — and who does not
- Not affected: any home under $3 million. Also any home outside the City of Toronto’s borders. Take Mississauga, Vaughan, Markham or Pickering. Buyers there pay only the Ontario tax. So does the rest of the GTA. That is the 905’s lasting edge on closing costs.
- Affected: buyers of homes over $3 million inside Toronto. That includes buyers moving up. Sellers feel it too, in a roundabout way. Their buyers now budget for higher closing costs.
- Business buildings and larger rental buildings (three or more units): the luxury tiers do not apply. For those types, the MLTT tops out at 2% over $400,000.
Planning around it
You cannot skip land transfer tax. But you can budget for it the right way:
- It is cash due on closing day. You cannot add LTT to your mortgage. Buying at $4 million? Budget about $217,000 for both taxes. That is on top of your down payment, legal fees and adjustments.
- Downsizing within Toronto? You pay LTT on the home you buy. Not on the one you sell. Say you sell a $3.5 million family home. You buy a $1.6 million condo. You pay about $57,000 in combined tax on the condo. It is one of the “costs of moving.” It makes some homeowners 55+ pause. Many compare downsizing against a reverse mortgage before they list.
- First-time buyers: the rebates did not change. They are worth up to $8,475 combined. See the first-time buyer GTA playbook.
Budgeting a buy? Use the land transfer tax calculator and the affordability calculator together. Or talk to us. We can build a full closing-cost budget with your pre-approval.
This article is general information, not financial, legal or tax advice. Mortgage products are subject to lender approval (OAC). Rates and product details change — confirm current terms before deciding. Speak with a licensed mortgage professional about your situation.
Frequently asked questions
What are Toronto's new land transfer tax rates for 2026?
Starting April 1, 2026, Toronto's city land transfer tax goes up on homes with one or two single-family residences. The new rates are 4.40% on the part from $3 million to $4 million, 5.45% from $4 to $5 million, 6.50% from $5 to $10 million, 7.55% from $10 to $20 million, and 8.60% above $20 million. You pay these on top of the Ontario tax.
Does the new Toronto land transfer tax apply if I signed my purchase agreement before April 1, 2026?
In most cases, yes. The tax is set by your closing date, when the deal is registered — not the day you signed the deal. A deal signed in March 2026 that closes in May 2026 pays the new rates. Check your own case with your real estate lawyer.
Do homes under $3 million pay more under the 2026 changes?
No. The April 2026 increase only hits the tiers above $3 million. The brackets below $3 million did not change, and buyers outside the City of Toronto pay no city land transfer tax at all.
How much total land transfer tax is owed on a $4 million Toronto home?
About $86,475 provincial plus about $130,475 city tax. That is about $217,000 in total under the April 2026 rates. Use our free land transfer tax calculator for exact numbers at any price.
Is there any rebate on the luxury tiers for first-time buyers?
The first-time buyer rebates still exist — up to $4,000 provincial and $4,475 city. But they only cover the first slices of tax. On a multi-million-dollar home they barely make a dent, and most luxury buyers are not first-time buyers anyway.
This content is general information, not financial, legal or tax advice. Mortgage products are subject to lender approval (OAC). Speak with a licensed mortgage professional about your situation.