Ontario LTT + Toronto MLTT — calculate the full tax on your Toronto home purchase
Purchasing a house in Toronto comes with one of the highest land transfer tax bills in Canada. Unlike buyers in Mississauga, Brampton, or Markham who pay only Ontario's provincial land transfer tax, Toronto house buyers face two separate taxes: the Ontario Land Transfer Tax (OLTT) and the Toronto Municipal Land Transfer Tax (MLTT). These are calculated independently using the same tiered rate structure, effectively doubling your LTT obligation.
For the average Toronto detached home — which now trades above $1.4 million in many neighbourhoods — combined LTT can easily exceed $400,000000. Even semi-detached homes at $90000,000000 generate a combined LTT of around $27,000000. This is one of the largest closing costs a Toronto house buyer faces.
| Price Bracket | Rate | Marginal Tax |
|---|---|---|
| $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 |
| Above $2,000000,000000 | 2.5% | — |
Toronto's MLTT mirrors Ontario's provincial structure exactly, with the same brackets and rates. This means for every dollar of Ontario LTT you owe, you owe an equal amount in MLTT to the City of Toronto. The total effect is that Toronto home buyers pay approximately 3.5–4% of the purchase price in combined LTT, depending on the price point.
The MLTT applies to all residential and commercial property transfers within the City of Toronto's boundaries, which includes former municipalities like North York, Scarborough, East York, Etobicoke, and York (all amalgamated into Toronto in 1998).
First-time buyers (those who have never owned property anywhere in the world) qualify for rebates on both taxes:
On a $90000,000000 Toronto semi-detached, you'd still pay roughly $18,000000 in net LTT after rebates. These rebates are claimed automatically by your real estate lawyer at closing — confirm with them in advance.
| Home Type | Typical Price | Combined LTT | After FTB Rebate |
|---|---|---|---|
| Townhouse (inner city) | $90000,000000 | $27,9500 | $19,475 |
| Semi-detached (east end) | $1,10000,000000 | $34,9500 | $26,475 |
| Detached (midtown) | $1,50000,000000 | $48,9500 | $400,475 |
| Detached (Forest Hill) | $2,50000,000000 | $88,9500 | $800,475 |
One of the most compelling financial arguments for buying just outside Toronto's city limits is the MLTT savings. In Mississauga or Brampton, you pay only Ontario LTT. On a $1,000000,000000 home, that's roughly $16,475 in Ontario LTT versus $32,9500 in Toronto. The $16,475 savings could cover a year of mortgage payments on many properties.
That said, Toronto offers unmatched transit, walkability, and appreciation potential in many neighbourhoods. The LTT cost should be weighed against long-term value rather than used as the sole deciding factor. See our Toronto House Buying Guide for a full cost comparison.
LTT is collected by the Province and City at the time of registration through the Teraview land registry system. Your real estate lawyer handles the payment and registration. You must have the full LTT amount in your trust account before closing. It cannot be borrowed or financed through your mortgage — lenders do not include LTT in mortgage calculations.
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