Every buyer in Ontario pays the provincial land transfer tax when a purchase closes. If the home is in the City of Toronto, which includes North York, Scarborough and Etobicoke, you also pay Toronto's municipal land transfer tax. Buyers in York Region communities such as Vaughan, Richmond Hill and Thornhill pay only the provincial tax.
On a $1,000,000 home, that difference is about $16,475. It's one of the most important numbers to know when you're comparing homes on either side of Steeles Avenue.
Estimate your land transfer tax
Buying the same home in York Region would save the municipal tax shown above.
For a home with one or two single-family residences, using the Ontario rates and the City of Toronto rates in effect from April 1, 2026. This is an estimate, not legal or tax advice; your real estate lawyer confirms the final amount.
How the two taxes are calculated
Both taxes are charged in brackets, so each portion of the price is taxed at its own rate. Up to $2,000,000 the Ontario and Toronto rates are the same, which is why buying in Toronto roughly doubles the tax. Above $3,000,000, Toronto's rates rise more steeply.
| Portion of the price | Ontario | Toronto (from Apr 1, 2026) |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| $3,000,000 to $4,000,000 | 2.5% | 4.40% |
| $4,000,000 to $5,000,000 | 2.5% | 5.45% |
| $5,000,000 to $10,000,000 | 2.5% | 6.50% |
| $10,000,000 to $20,000,000 | 2.5% | 7.55% |
| Over $20,000,000 | 2.5% | 8.60% |
First-time buyer rebates
Ontario refunds up to $4,000 of the provincial tax for eligible first-time buyers. The City of Toronto has its own first-time buyer rebate of up to $4,475 on the municipal tax. Eligibility rules apply to both, so confirm yours with your lawyer before you budget for it.
What this means when you're choosing where to buy
If you're deciding between, say, a condo near Finch station and one near the Vaughan Metropolitan Centre, the land transfer tax is part of the real price. I include it in every side-by-side comparison I prepare for clients, together with legal fees, adjustments and moving costs.
Sources, checked October 1, 2026: City of Toronto, MLTT rates and fees; City of Toronto, MLTT rebates; Ontario, calculating land transfer tax; Ontario, refunds for first-time homebuyers.