Ontario land transfer tax is a one-time tax you pay when you buy a home, based on the purchase price. On a $900,000 bungalow it works out to $14,475, and buyers inside the City of Toronto pay a second, municipal tax of about the same amount. First-time buyers can get part or all of it refunded.
Key takeaways
- Ontario land transfer tax is charged in brackets from 0.5% up to 2.5%.
- Toronto adds its own Municipal Land Transfer Tax, which roughly doubles the bill.
- First-time buyers can get up to $4,000 back provincially and up to $4,475 in Toronto.
- The tax is due on closing day and is not covered by your mortgage.
How is Ontario land transfer tax calculated?
The tax works like income tax brackets. Each slice of the price is taxed at its own rate, then the slices are added up. As of September 2026, the rates for a single-family home are:
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
The 2.5% top bracket applies to properties with one or two single-family homes on them. For most bungalow buyers, the 2.0% bracket is where the bulk of the tax comes from.
A quick worked example
Say you buy a raised bungalow in Brampton for $900,000. Here’s the math:
- First $55,000 at 0.5% = $275
- Next $195,000 at 1.0% = $1,950
- Next $150,000 at 1.5% = $2,250
- Last $500,000 at 2.0% = $10,000
Total provincial land transfer tax: $14,475. Because Brampton isn’t in Toronto, that’s the full amount.
What does Toronto’s land transfer tax add?
If the home is inside the City of Toronto, you also pay the Municipal Land Transfer Tax (MLTT). It mirrors the provincial rates, with higher luxury brackets above $3 million.
That same $900,000 bungalow in Scarborough or Etobicoke would cost about $14,475 provincially plus about $14,475 municipally, or roughly $28,950 in total. The MLTT does not apply in Mississauga, Brampton, Vaughan, Markham or any other city outside Toronto’s borders.
Bungalow tip: Comparing a Toronto bungalow with one just across the border in Peel or York? Add the MLTT to the Toronto price before you compare. It can close much of the price gap on paper. Browse bungalows in Peel Region to see how the numbers stack up.
Land transfer tax at common bungalow prices
| Purchase price | Ontario LTT | Ontario + Toronto MLTT (approx.) |
|---|---|---|
| $650,000 | $9,475 | $18,950 |
| $800,000 | $12,475 | $24,950 |
| $1,000,000 | $16,475 | $32,950 |
| $1,200,000 | $20,475 | $40,950 |
These are before any first-time buyer rebates. Your lawyer will confirm the exact figure on your statement of adjustments.
First-time buyer land transfer tax rebates
If you’ve never owned a home anywhere in the world, you may qualify for refunds:
- Ontario refund: up to $4,000. That covers the full provincial tax on homes up to about $368,000.
- Toronto rebate: up to $4,475 off the MLTT for eligible first-time buyers in the city.
On the $900,000 Toronto example, a qualifying first-time buyer would pay about $28,950 minus $8,475, or roughly $20,475. Eligibility rules apply, including occupancy and residency rules, so confirm with your real estate lawyer. See our full guide to first-time home buyer incentives in Ontario.
When and how do you pay land transfer tax?
Land transfer tax is due on closing day. Your real estate lawyer collects it from you with the rest of your closing funds and pays it when they register the deed electronically.
It can’t be added to your mortgage. Lenders want to see that you have the down payment plus closing costs saved. A common rule of thumb is to budget 1.5% to 4% of the price for closing costs, with Toronto buyers at the higher end because of the MLTT.
Other closing costs to plan for
- Legal fees and disbursements
- Title insurance
- Home inspection and appraisal
- Property tax and utility adjustments
Common land transfer tax mistakes to avoid
- Using the listing price, not the sale price. The tax is based on what you actually pay, so recalculate after you negotiate.
- Forgetting the city line. Some streets near Steeles Avenue or Etobicoke Creek sit on different sides of the Toronto border. Check the municipality on the listing before you budget.
- Assuming you qualify as a first-time buyer. Owning a home in the past, even outside Canada, can disqualify you. Confirm early with your lawyer.
- Draining your savings for the down payment. Keep the tax and other closing costs in a separate pot so you aren’t short on closing day.
Frequently asked questions
Can I add land transfer tax to my mortgage?
No. Land transfer tax must be paid in cash on closing. Lenders also check that you have enough saved to cover it before they approve you.
Do I pay Toronto land transfer tax in Mississauga or Vaughan?
No. The Municipal Land Transfer Tax applies only to properties inside the City of Toronto. You pay only the provincial tax elsewhere in Ontario.
Do both spouses need to be first-time buyers for the rebate?
Not always. The refund can be prorated when only one buyer qualifies. Your real estate lawyer will work out the exact amount.
Is land transfer tax the same on new builds?
Land transfer tax applies to new and resale homes. New builds can also qualify for separate HST rebates, which don’t apply to resale homes.
The bottom line on land transfer tax
Land transfer tax is unavoidable, but it’s predictable. Run the numbers for every home you’re considering, add Toronto’s tax if it applies, and subtract any first-time buyer rebates.
Want to see the full cost before you offer? Try our home buying calculators and review our buyer’s guide for every closing cost to expect.
Bungalows for sale in Toronto, Brampton and Mississauga
Live listings from the places in this article.
$699,0007 Twenty Second Street, Toronto3+3 bed · 3 bath · Long BranchCourtesy of RE/MAX PREMIER INC.
$945,000257 John Tabor Trail E, Toronto3+2 bed · 2 bath · MalvernCourtesy of RE/MAX ATRIUM HOME REALTY
$969,000375 Bartley Bull Parkway, Brampton3+1 bed · 2 bath · Bram EastCourtesy of CENTURY 21 MILLENNIUM INC.
$789,000173 Fairhill Avenue, Brampton2+2 bed · 3 bath · Fletcher's MeadowCourtesy of CENTURY 21 MILLENNIUM INC.
$1,299,0003058 Greta Gate, Mississauga3 bed · 2 bath · ApplewoodCourtesy of RE/MAX REALTY SPECIALISTS INC.
$1,348,0001876 Bough Beeches Boulevard, Mississauga3+1 bed · 3 bath · RathwoodCourtesy of RE/MAX REAL ESTATE CENTRE INC.
