Key takeaways
- Toronto’s municipal tax is additional to Ontario’s provincial land transfer tax.
- The property must be in the City of Toronto; being elsewhere in the GTA does not trigger Toronto’s tax.
- First-time-buyer relief has eligibility conditions and does not necessarily eliminate the full tax.
- Toronto’s municipal foreign-buyer tax is a separate charge with separate rules.
Which properties are subject to Toronto’s tax?
The municipal land transfer tax, usually called MLTT, generally applies when you acquire an interest in land within Toronto. It is commonly paid when your lawyer registers the transfer, although some unregistered beneficial transfers can also attract tax. Exemptions and special rules need to be considered for the actual transaction. [1]
The municipal boundary matters. Toronto includes areas such as Scarborough, North York and Etobicoke. A property in Markham, Vaughan, Mississauga or another neighbouring municipality does not become subject to Toronto MLTT merely because the listing describes it as a GTA home.
Ask your lawyer to confirm the legal municipality rather than relying on a neighbourhood name or mailing description.
How is residential MLTT calculated in 2026?
For property containing one or two single-family residences, Toronto applies graduated rates to the relevant portion of the value of consideration. A higher bracket does not normally apply to the entire price. The rates below reflect the City’s schedule effective April 1, 2026. [2]
| Portion of value of consideration | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| Over $55,000 to $250,000 | 1.0% |
| Over $250,000 to $400,000 | 1.5% |
| Over $400,000 to $2 million | 2.0% |
| Over $2 million to $3 million | 2.5% |
| Over $3 million to $4 million | 4.40% |
| Over $4 million to $5 million | 5.45% |
| Over $5 million to $10 million | 6.50% |
| Over $10 million to $20 million | 7.55% |
| Over $20 million | 8.60% |
Different rules apply to other property types. Your lawyer must also determine the taxable consideration, which is not always simply the number on a resale listing. Special transactions, assumed debt and new-home purchases can require additional analysis.
What would I pay on an $800,000 Toronto home?
For a straightforward purchase of a property containing one single-family residence, with $800,000 of taxable consideration, the municipal calculation is:
- First $55,000 × 0.5% = $275.
- Next $195,000 × 1.0% = $1,950.
- Next $150,000 × 1.5% = $2,250.
- Remaining $400,000 × 2.0% = $8,000.
That totals $12,475 in Toronto MLTT, before any rebate and separate administrative charges. Provincial land transfer tax must also be calculated and paid. This example assumes no exemption and does not include either provincial or municipal foreign-buyer tax.
Can a first-time buyer reduce the tax?
An eligible first-time purchaser may receive a Toronto rebate of up to $4,475. The City’s conditions include age, citizenship or permanent-resident status, previous home ownership anywhere in the world, spousal ownership history and occupation as a principal residence within nine months. [3]
Eligibility is assessed for the purchasers and their interests. Adding a co-owner who has owned a home before can affect the available relief. A spouse’s ownership history needs particular care; property owned before the relationship and property owned while you were spouses are not treated identically.
On the $800,000 example, a full $4,475 rebate would reduce the municipal tax to $8,000. It would not remove it entirely. Ontario’s provincial first-time-buyer refund is a separate claim.
Are there fees as well as tax?
Yes. Toronto publishes an MLTT administration fee, and HST applies to that fee. The City also charges a fee for certain refund or rebate requests made after electronic registration. The first-time-buyer rebate should not be assumed to waive these charges. [2]
Ask your lawyer for a breakdown that separates provincial tax, municipal tax, any foreign-buyer taxes, rebates and fees. This makes the closing budget easier to check and avoids treating a fee as part of the tax itself.
Is Toronto’s foreign-buyer tax included in MLTT?
No. Toronto’s Municipal Non-Resident Speculation Tax, or MNRST, is a separate 10% tax on certain residential acquisitions by foreign buyers. Ontario’s 25% NRST can apply separately too. Paying either tax does not establish that a purchase is permitted under the federal foreign-buyer prohibition. [2, 4]
If any purchaser has temporary immigration status, or if a corporation or trust is involved, ask for advice before signing a binding agreement. Ordinary MLTT, additional taxes and the federal prohibition are different legal questions.
About the author — Kubeskaran Navaratnam
Kubeskaran Navaratnam is the Managing Partner of iClosed and a lawyer licensed by the Law Society of Ontario (LSO #60539H, licensed since 2011). His practice is Ontario residential real estate, acting for buyers, sellers and lenders on resale, new-build and condominium closings across the Greater Toronto Area. His Law Society record can be verified at https://lsodirectory.lso.ca/en-US/licensee-detail/?lawsocietynumber=60539H. This article is general information about Ontario law and practice, not legal advice. It does not create a lawyer-client relationship. For advice on your own transaction, speak with a licensed Ontario real estate lawyer.
Sources
- City of Toronto — Municipal land transfer tax information. — https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-information/
- City of Toronto — MLTT and MNRST rates and fees. — https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/
- City of Toronto — Rebate opportunities. — https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rebate-opportunities/
- Ontario — Non-Resident Speculation Tax. — https://www.ontario.ca/document/non-resident-speculation-tax
This article provides general information about Ontario law and closing practice as of October 26, 2026. It is not legal or tax advice and does not create a lawyer-client relationship. Your agreement of purchase and sale, your lender’s instructions and your own circumstances control what applies to you. Rates, thresholds and rules change — confirm current figures before relying on them.