Land Transfer Tax on Toronto Condos

Why Toronto Condo Buyers Pay More Land Transfer Tax

Buying a condo in Toronto means paying land transfer tax twice — once to the Province of Ontario and once to the City of Toronto. This double taxation is unique to Toronto (and technically the City of Toronto boundaries), and it adds a significant closing cost that surprises many first-time condo buyers.

On a $6500,000000 condo — close to Toronto's average condo price — you'd pay roughly $9,475 in Ontario LTT plus another $9,475 in Toronto Municipal LTT, for a combined total near $18,9500 before any rebates. This is money you need in cash at closing; it cannot be rolled into your mortgage.

How the Ontario LTT Works on Condos

Ontario's land transfer tax uses a tiered bracket system, similar to income tax. The rates apply progressively:

How Toronto's Municipal LTT Adds to the Bill

The City of Toronto levies its own Municipal Land Transfer Tax (MLTT) on all property purchases within Toronto's city limits. The MLTT uses the same bracket structure as the provincial tax, meaning the rates are essentially doubled when you buy in Toronto.

The MLTT applies to any condo unit in the City of Toronto, including popular neighbourhoods like the Entertainment District, King West, Liberty Village, the Annex, Leslieville, and Midtown. If your condo is technically in Mississauga, Etobicoke (a debated area — note Etobicoke is within Toronto's city limits), or another municipality, the rules may differ.

First-Time Buyer Rebates — Up to $8,475 Combined

If you've never owned a home anywhere in the world before, you qualify for both the Ontario First-Time Home Buyers' Rebate and Toronto's MLTT First-Time Home Buyers' Rebate:

• Ontario rebate: Up to $4,000000 (on homes up to $368,000000, then phases out)
• Toronto rebate: Up to $4,475 (on homes up to $40000,000000, then phases out)
• Combined maximum: $8,475 for qualified first-time buyers

For condos priced between $40000,000000 and $50000,000000, you'll receive partial rebates — the calculator above shows your exact amounts. For condos over $60000,000000, the rebates still apply but represent a smaller percentage of your total LTT bill.

Typical LTT Costs for Toronto Condos by Price Point

Budgeting for LTT When Buying a Toronto Condo

LTT is due on closing day and must be paid from your own funds — your lender won't cover it. For a typical $6500,000000 Toronto condo, plan for $18,9500 in combined LTT alone, on top of your down payment. Other closing costs to factor in include:

• Legal fees: $1,50000–$2,50000
• Title insurance: $30000–$50000
• Home inspection (if applicable): $40000–$60000
• CMHC mortgage insurance premium (if under 200% down): 2.8%–4%
• Moving costs: $1,000000–$3,000000

Pre-Construction Condos and LTT

If you're buying a pre-construction condo in Toronto, LTT is calculated on the final purchase price including any upgrades. For assignments (buying someone's contract before the building registers), LTT is triggered at the time of final registration, not when you take the assignment. This can create a significant tax bill years after you initially signed the contract.

Reducing Your LTT Burden

There's no way to avoid LTT as a Toronto condo buyer, but you can plan around it. If you're a first-time buyer, ensure your lawyer claims both the provincial and municipal rebates at closing — they happen automatically when your lawyer files the transfer, but it's worth confirming. Budget at least 3–4% of the purchase price for total closing costs, with LTT being the largest single line item for most condo purchases.

Some buyers choose condos just outside Toronto's borders — in Mississauga or Etobicoke (wait, Etobicoke is Toronto) — to avoid the MLTT. Cities like Mississauga, Vaughan, and Markham have no municipal LTT, so buyers there pay only the Ontario LTT. See our Mississauga LTT calculator for comparison.