Toronto municipal land transfer tax (MLTT)토론토 시 토지양도세

What is it?

The Toronto municipal land transfer tax (MLTT) is a tax the buyer pays to the City of Toronto when buying a home or land inside the city. It is separate from the Ontario land transfer tax and is paid on top of it. It has applied since February 1, 2008 under Chapter 760 of the Toronto Municipal Code.

You pay it the same way as the provincial tax: your lawyer pays it on closing when the transfer is registered. It is usually paid in cash, not from your mortgage, so plan for it on top of your down payment.

Where does it apply?

• Every property inside the City of Toronto: not just downtown, but also North York, Scarborough, Etobicoke, York and East York.
• Not outside Toronto: Vaughan, Markham, Richmond Hill, Mississauga, Brampton, Pickering, Oakville and the other GTA cities have no municipal land transfer tax. You pay only the Ontario tax there.
• Near the city border, for example around Steeles Avenue, one street can make a big difference to the tax. Check the exact municipality of the listing, not just the neighbourhood name.

What are the rates? (from April 1, 2026)

These rates apply to property with one or two single family residences. Chapter 760 of the Toronto Municipal Code counts a condo unit, or a building or part of a building designed for one family to live in, as a single family residence. Ask your lawyer to confirm how your property is classed. Each bracket is calculated separately and added up.

For property that is not a single family residence (an apartment building or a store, for example), the top rate is 2.0% on the part over $400,000, with no higher brackets.

How have the rates changed?

From March 1, 2017 to December 31, 2023 the top bracket was 2.5% on the part over $2,000,000.

From January 1, 2024 to March 31, 2026, single family homes over $3,000,000 had luxury brackets of 3.5% (to $4,000,000), 4.5% (to $5,000,000), 5.5% (to $10,000,000), 6.5% (to $20,000,000) and 7.5% (over $20,000,000).

On December 17, 2025 Toronto City Council passed an amendment raising those luxury rates, and the rates in the table above (4.40% to 8.60%) took effect on April 1, 2026. Which date’s rates apply depends on the timing of the transaction, so if your agreement and closing straddle a rate change, ask your lawyer.

Worked examples

For reference only (rates as of April 1, 2026). Before the first-time buyer rebate (city up to $4,475, province up to $4,000), and the city admin fee is extra. In the $3,500,000 example, the $500,000 over $3,000,000 is taxed at 4.40%.

First-time buyer rebate: up to $4,475

If you have never owned a home, you can get back up to $4,475 of the Toronto tax. $4,475 equals the city tax on a $400,000 price, so in effect the first $400,000 is free of city tax. New and resale homes both qualify, but commercial, industrial and multi-residential properties do not.

You must be at least 18, move in as your principal residence within nine months of closing, never have owned a home anywhere in the world, your spouse must not have owned one while they were your spouse, and you must be a Canadian citizen or permanent resident. If you are not a citizen or permanent resident on closing but become one within 18 months, you can still apply.

Your lawyer normally applies the rebate on closing when the transfer is registered. If it was missed, you can apply to the city within 18 months after closing, but a processing fee applies.

Administration fees

• Each transaction has an MLTT administration fee of $102.56 + HST. It appears on your lawyer’s statement of adjustments as the "MLTT admin fee".
• If you ask for a rebate or refund after the transfer has been registered, a processing fee of $221.22 applies. That is why it is better to claim the rebate on closing.
• There is no administration fee for properties fully exempt under section 760 (14) of the Municipal Code or for transactions where the value of the consideration is under $14,399.

Foreign buyers pay another 10% (MNRST)

Since January 1, 2025 the City of Toronto also charges a Municipal Non-Resident Speculation Tax (MNRST). A buyer who is not a Canadian citizen or permanent resident pays 10% of the price to the city when buying certain homes inside Toronto (an "eligible home" in the city by-law: a detached or semi-detached house, townhouse, condo unit, duplex to fourplex, and a few others). This is separate from Ontario’s 25% Non-Resident Speculation Tax (NRST), so when both apply they come to 35% of the price. Ask your lawyer whether your property is covered.

If you become a permanent resident within four years of the purchase, you can get the city tax back. You must apply within 90 days of becoming a permanent resident, hold the home alone or only with your spouse, and live in it as your principal residence until you apply. Note that the provincial NRST rebate has a different deadline (180 days). There is no rebate for international students or work permit holders.

Example