buying
Toronto's New Land Transfer Tax Rates (April 2026)
Published July 2, 2026 · By YYZ Mortgage
If you’re buying — or selling — a higher-end home in the City of Toronto, the closing costs changed materially this spring. On December 17, 2025, Toronto City Council approved higher municipal land transfer tax (MLTT) rates on homes over $3 million, and they took effect for closings on or after April 1, 2026.
Here’s what changed, who pays, and the timing detail that catches people off guard.
The new rates at a glance
Toronto’s MLTT applies in addition to Ontario’s provincial land transfer tax. Both are marginal — each rate applies only to the slice of the price inside its bracket. The April 2026 change raised the tiers above $3 million (for properties containing one or two single-family residences):
| Portion of purchase price | MLTT rate (from Apr 1, 2026) | Previous 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 provincial brackets are unchanged: 0.5% to 2%, plus 2.5% on the portion over $2 million for homes with one or two single-family residences.
Run your own numbers: our land transfer tax calculator applies the current 2026 brackets for both taxes, including first-time buyer rebates — free, no email required.
What this means in dollars
Illustrative examples (combined provincial + municipal, 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 increase scales quickly — on an $8 million purchase the change alone costs roughly the price of a car.
The timing trap: closing date, not signing date
Land transfer tax is triggered when the transfer is registered — your closing date. The date you signed the agreement of purchase and sale doesn’t matter. A buyer who signed in February 2026 but closed April 15, 2026 pays the new rates. If you’re negotiating a luxury purchase with a flexible closing, this is now a real line item in the negotiation — talk to your real estate lawyer about it.
Who is affected — and who isn’t
- Unaffected: every purchase under $3 million; every purchase outside the City of Toronto’s boundaries (Mississauga, Vaughan, Markham, Pickering and the rest of the GTA pay only the provincial tax — the 905’s permanent closing-cost advantage).
- Affected: buyers of homes over $3 million inside Toronto — including buyers moving up and, indirectly, sellers whose buyers now budget for higher closing costs.
- Commercial and larger multi-residential (three or more units): the luxury tiers don’t apply; MLTT caps at 2% over $400,000 for those property classes.
Planning around it
You can’t avoid land transfer tax, but you can budget it properly:
- It’s cash on closing. LTT cannot be added to your mortgage. On a $4 million purchase, budget roughly $217,000 for combined LTT on top of your down payment, legal fees and adjustments.
- Downsizing within Toronto? Remember you pay LTT on what you buy, not what you sell. Selling a $3.5 million family home and buying a $1.6 million condo means about $57,000 in combined LTT on the condo — one of the “costs of moving” that makes some homeowners 55+ compare downsizing against a reverse mortgage before listing.
- First-time buyers: the rebates (up to $8,475 combined) are unchanged — see the first-time buyer GTA playbook.
Budgeting a purchase? Use the land transfer tax calculator and the affordability calculator together, or talk to us for 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?
Effective April 1, 2026, Toronto's municipal land transfer tax on homes with one or two single-family residences rises to 4.40% on the portion between $3 million and $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. These apply on top of the Ontario provincial tax.
Does the new Toronto land transfer tax apply if I signed my purchase agreement before April 1, 2026?
Generally yes. Land transfer tax is triggered by the closing (registration) date, not the date you signed the agreement of purchase and sale. A deal signed in March 2026 that closes in May 2026 pays the new rates. Confirm your specific situation with your real estate lawyer.
Do homes under $3 million pay more under the 2026 changes?
No. The April 2026 increase affects only the luxury tiers above $3 million. The brackets below $3 million are unchanged, and buyers outside the City of Toronto pay no municipal land transfer tax at all.
How much total land transfer tax is owed on a $4 million Toronto home?
Roughly $86,475 provincial plus about $130,475 municipal — approximately $217,000 combined under the April 2026 rates. Use our free land transfer tax calculator for exact figures 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 municipal — but they offset only the first portions of tax. On a multi-million-dollar purchase they are a rounding error, and most luxury buyers are not first-time buyers in any case.
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.