Toronto is the only city in Ontario that charges its own land transfer tax on top of the provincial one, and it has become a campaign issue ahead of the October 26, 2026 municipal election. A buyer of a $1.1 million Toronto bungalow pays about $18,475 to the city and the same again to the province. Here is how the tax works today, what has been proposed, and how to plan around the uncertainty.
Key takeaways
- Toronto buyers pay two land transfer taxes, municipal and provincial.
- On a $1.1 million home the combined bill is roughly $36,950.
- One mayoral candidate has proposed waiving the municipal tax on the first $1.1 million for principal residences.
- Other candidates say the city cannot afford the estimated $300 million a year.
- Nothing changes unless the next council votes for it, so budget on today’s rules.
What Toronto bungalow buyers pay today
Both taxes use the same brackets for most homes, so the municipal bill roughly doubles the provincial one. The buyer pays both on closing, and neither can be added to an insured mortgage.
| Purchase price | Provincial tax | Toronto tax | Total |
|---|---|---|---|
| $900,000 | $14,475 | $14,475 | $28,950 |
| $1,100,000 | $18,475 | $18,475 | $36,950 |
| $1,300,000 | $22,475 | $22,475 | $44,950 |
First-time buyers can claim a rebate of up to $4,000 from the province and up to $4,475 from the city. Homes above $3 million pay higher municipal rates. Our guide to Ontario land transfer tax shows the full calculation.
What has been proposed in the campaign
On September 29, mayoral candidate Brad Bradford promised to waive the municipal land transfer tax on the first $1.1 million of a purchase for principal residences. Investors and owners of multiple properties would be excluded. He also proposed raising the first-time buyer rebate to track the average home price. His campaign put the cost at about $300 million a year.
Mayor Olivia Chow responded that finding that money would mean service cuts, and candidate Chris Alexander questioned the math given the city’s existing budget shortfall. Separately, the Toronto Regional Real Estate Board has urged governments to reduce the tax, calling it a barrier for buyers.
We are not taking a side. The point for buyers is simple: this is a campaign promise, not a law.
Why this matters more for bungalows
- Most Toronto bungalows sit near the proposed threshold. Many trade between $900,000 and $1.4 million, so the tax is a five-figure cost on almost every purchase.
- Downsizers pay it too. Someone selling a two-storey in Toronto to buy a bungalow in Toronto pays both taxes on the purchase, with no rebate.
- It shapes the 416 vs 905 decision. A bungalow in Mississauga, Vaughan or Pickering carries only the provincial tax. On a $1.1 million home, that is $18,475 saved.
Bungalow tip: When comparing a Toronto bungalow with one just across the city boundary, add the municipal land transfer tax to the Toronto price. It often changes which home is the better value.
Should you wait for the election?
Waiting has costs and no guarantee. Even if a candidate who supports a cut wins, the change would need a council vote, a budget plan and an effective date. That could take months and the final version could differ from the promise.
A practical approach is to budget for the tax as it stands, keep your pre-approval current, and treat any future cut as a bonus rather than a plan.
Frequently asked questions
Do other GTA cities have a municipal land transfer tax?
No. Only the City of Toronto charges one. Buyers elsewhere in Ontario pay the provincial tax only.
Would a cut apply to deals already signed?
That would depend on the wording council adopted. Land transfer tax is charged on closing, but new rules often include transition provisions. Ask your lawyer if a change is passed.
Is the land transfer tax negotiable with the seller?
The tax itself is not, but in a slower market buyers sometimes negotiate the price with their total closing costs in mind.
Compare bungalows on both sides of the boundary
Browse bungalows for sale across Ontario and compare Toronto with neighbouring cities. First-time buyers can also review our guide to first-time home buyer incentives in Ontario.
This article is general information as of early October 2026, not legal, tax, mortgage or insurance advice. Rules and numbers change, so confirm the details for your situation with a licensed professional.
