How Toronto’s Luxury Land Transfer Tax Works
Buyers in the City of Toronto pay two land transfer taxes on closing: the Ontario land transfer tax and the Toronto municipal land transfer tax (MLTT). Both are charged in brackets, so each rate applies only to the portion of the price that falls within that bracket.
As of April 1, 2026, Toronto charges graduated luxury rates on homes priced above $3,000,000. These rates apply to properties with one or two single-family residences, including houses and condos.
| Portion of purchase price | Toronto MLTT rate |
|---|---|
| $3,000,000 – $4,000,000 | 4.40% |
| $4,000,000 – $5,000,000 | 5.45% |
| $5,000,000 – $10,000,000 | 6.50% |
| $10,000,000 – $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
The Ontario land transfer tax tops out at 2.5% on the portion of the price above $2,000,000. On a $4,500,000 home in Toronto, the combined land transfer tax comes to $231,700, or about 5.15% of the purchase price.
Frequently Asked Questions
When is land transfer tax paid?
Land transfer tax is due on closing. Your real estate lawyer collects it and pays it when the transfer is registered.
Can land transfer tax be added to my mortgage?
No. It is a closing cost paid in cash, so it should be part of your budget alongside your down payment.
Do first-time buyer rebates apply to luxury homes?
Eligible first-time buyers can still claim the Ontario rebate (up to $4,000) and the Toronto rebate (up to $4,475), but at luxury price points they offset only a small share of the total.