Why do Toronto buyers pay double land transfer tax?

The City of Toronto is the only Canadian municipality with its own Municipal Land Transfer Tax (MLTT) in addition to the Ontario Provincial Land Transfer Tax (PLTT). Buyers in Toronto must pay both taxes at closing.

How much is the Ontario First-Time Homebuyer Land Transfer Tax rebate?

Eligible first-time homebuyers in Ontario receive a maximum provincial rebate of $4,000. If buying in the City of Toronto, buyers receive an additional municipal rebate of up to $4,475, totaling up to $8,475 in rebates.

Can land transfer tax be added to my mortgage?

No. Land transfer tax must be paid in liquid cash on the closing date through your real estate lawyer. It cannot be rolled into your mortgage loan balance.

Updated for 2025/2026 Provincial & Municipal Rates

Canada Land Transfer Tax Calculator

Accurately compute closing day land transfer taxes across all Canadian provinces, including Toronto double MLTT and First-Time Homebuyer Rebates.

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🏠 Property & Location Details

Cash Due at Closing

Property Purchase Price ($ CAD) $850,000

Province

Property is in the City of Toronto (416 Area) Adds the Toronto Municipal Land Transfer Tax (MLTT), effectively doubling the closing transfer tax with municipal rebate eligibility.

First-Time Homebuyer Applies maximum provincial rebates (up to $4,000 in Ontario) and municipal rebates (up to $4,475 in Toronto).

Net Land Transfer Tax 2.18% Effective

$18,475

Saved $8,475 via First-Time Buyer Rebates

Due at Closing Lawyer Escrow Trust

Gross Pre-Rebate Tax $26,950

Tax & Rebate Itemization Closing Escrow

Ontario Provincial LTT: $13,475

Toronto Municipal MLTT: $13,475

Provincial Rebate: -$4,000

Toronto Municipal Rebate: -$4,475

Total Cash Required: $18,475

⚠️ Liquid Cash Requirement

Unlike CMHC mortgage insurance premiums, land transfer taxes cannot be rolled into your mortgage. Your lawyer must receive these cleared funds prior to title registration.

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Understanding Canadian Land Transfer Taxes & Rebates

When purchasing residential real estate in Canada, property transfer taxes represent the single largest cash closing cost. Rates and rebate programs vary substantially across provinces and municipalities.

1. Ontario & The Toronto Municipal Surtax (MLTT)

Buyers purchasing in the City of Toronto face a unique "double transfer tax". The provincial government levies the Ontario PLTT, and the municipal council duplicates this with the Toronto MLTT.

Up to $55,000: 0.5%
$55,001 to $250,000: 1.0%
$250,001 to $400,000: 1.5%
$400,001 to $2,000,000: 2.0%
$2,000,001 to $3,000,000: 2.5%
Over $3,000,000 (Toronto Luxury Tiers): Escalates from 3.5% up to 7.5% on estates exceeding $20,000,000.

2. First-Time Homebuyer Rebate Rules

To qualify for the $4,000 Ontario rebate and the $4,475 Toronto rebate, the purchaser must be a Canadian citizen or permanent resident, at least 18 years old, occupy the home as a principal residence within 9 months, and have never owned an eligible home anywhere in the world.

Frequently Asked Questions (Land Transfer Tax)

How does the British Columbia Property Transfer Tax (PTT) exemption work? ▼

Under the updated BC budget, qualifying first-time buyers pay 0% PTT on homes with a fair market value up to $835,000. A partial exemption is available between $835,000 and $860,000. Newly constructed homes have an exemption threshold up to $1,100,000.

What is Quebec's "Welcome Tax" (Taxe de bienvenue)? ▼

Named after Jean Bienvenue, Quebec's municipal transfer tax is calculated on the higher of the purchase price or municipal valuation. Montreal applies progressive tiers: 0.5% up to $58.9k, 1.0% to $294.6k, 1.5% to $500k, 2.0% to $1M, 2.5% to $2M, and 3.5% beyond.

FreeCalcSuite • Canadian Land Transfer Tax Statement