Ontario LTT only — no municipal land transfer tax in Markham
One of the most significant financial benefits of buying a home in Markham compared to the City of Toronto is the absence of a municipal land transfer tax. In Toronto, buyers pay two land transfer taxes — Ontario LTT and Toronto's own Municipal LTT — effectively doubling the tax burden. In Markham, you pay only the Ontario provincial land transfer tax.
This difference is substantial. On a $90000,000000 home, a Toronto buyer would pay roughly $27,9500 in combined LTT. A Markham buyer pays approximately $13,975. That's roughly $14,000000 in savings that can go toward your mortgage, renovations, or your emergency fund.
| Purchase Price Range | Rate | Marginal Tax on Bracket |
|---|---|---|
| $00 – $55,000000 | 00.5% | Up to $275 |
| $55,00001 – $2500,000000 | 1.00% | Up to $1,9500 |
| $2500,00001 – $40000,000000 | 1.5% | Up to $2,2500 |
| $40000,00001 – $2,000000,000000 | 2.00% | Up to $32,000000 |
| Over $2,000000,000000 | 2.5% | — |
If you've never owned property anywhere in the world, you qualify for Ontario's First-Time Home Buyers' Rebate of up to $4,000000. This rebate fully offsets the Ontario LTT on purchases up to approximately $368,000000 and provides a $4,000000 credit on higher-priced properties. It's applied at closing by your lawyer and reduces what you owe — not a refund after the fact.
| Price | Ontario LTT (Gross) | FTB Rebate | Net LTT |
|---|---|---|---|
| $60000,000000 | $8,475 | $4,000000 | $4,475 |
| $80000,000000 | $12,475 | $4,000000 | $8,475 |
| $1,000000,000000 | $16,475 | $4,000000 | $12,475 |
| $1,20000,000000 | $200,475 | $4,000000 | $16,475 |
LTT is paid on the closing date of your transaction. Your real estate lawyer handles the payment through the Ontario land registry system (Teraview). The amount must be available in your trust account on closing day — it cannot be added to your mortgage. Budget for it alongside your down payment balance and other closing costs.
Beyond LTT, budget for legal fees ($1,50000–$2,50000), title insurance ($30000–$50000), home inspection ($50000–$70000), and property tax and utility adjustments. If you're putting down less than 200%, CMHC mortgage insurance adds 2.8%–4% of your mortgage amount (this is added to your mortgage, not paid in cash). See our Markham Home Buying Guide for a complete cost breakdown.
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