Costs, Comparisons and 2026 Rules
Ontario land transfer tax and Toronto MLTT in 2026: brackets, rebates and examples
How Ontario land transfer tax and Toronto's Municipal Land Transfer Tax are calculated in 2026, the new MLTT brackets above $3 million, first-time buyer refunds and NRST.
In Ontario, every buyer pays provincial land transfer tax (LTT) on registration, at 0.5% to 2.5% in brackets. Buyers of property in the City of Toronto also pay Toronto's Municipal Land Transfer Tax (MLTT), which uses the same brackets up to $3,000,000 and, since 1 April 2026, higher graduated rates from 4.4% to 8.6% above $3,000,000. A $1,000,000 home costs $16,475 in Ontario LTT; in Toronto the buyer pays another $16,475 in MLTT, for $32,950 in total. First-time buyers can reduce this by up to $4,000 (Ontario) and $4,475 (Toronto).
This guide sits in the Costs, Comparisons and 2026 Rules group. For other provinces see land transfer tax by province.
Ontario land transfer tax brackets
These rates apply to agreements entered into after 14 November 2016 and registered from 1 January 2017.
| Value of consideration | Rate | Tax on the full bracket |
|---|---|---|
| Up to $55,000 | 0.5% | $275 |
| $55,000 to $250,000 | 1.0% | $1,950 |
| $250,000 to $400,000 | 1.5% | $2,250 |
| $400,000 to $2,000,000 | 2.0% | $32,000 |
| Over $2,000,000 (land with one or two single-family residences) | 2.5% | — |
Quick formulas from these brackets, for one- or two-family homes:
- $400,000 to $2,000,000: price x 2% - $3,525
- Above $2,000,000: price x 2.5% - $13,525 (the Ontario ministry publishes this second formula)
Check: $1,000,000 x 2% - $3,525 = $16,475. Using the bracket method, $4,475 + 2% x $600,000 = $16,475.
Toronto Municipal Land Transfer Tax brackets
For residential property with one or two single-family residences, the City of Toronto publishes these rates:
| Value of consideration | MLTT 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% |
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
The brackets above $3,000,000 were amended by City Council in December 2025 and apply from 1 April 2026. The city also charges an MLTT administration fee (published at $102.56 plus HST in 2026) on most transactions. Commercial and multi-residential properties have different rates; check the city's page.
Worked examples (illustrative)
Condo in Mississauga, $650,000, repeat buyer. Ontario LTT = $4,475 + 2% x $250,000 = $9,475. No MLTT, because Mississauga is outside Toronto.
House in Toronto, $1,000,000, repeat buyer. Ontario LTT = $16,475. MLTT = $16,475. Total = $32,950.
Same house, two first-time buyers who qualify. Ontario: $16,475 - $4,000 = $12,475. Toronto: $16,475 - $4,475 = $12,000. Total = $24,475, a saving of $8,475.
House in Toronto, $3,500,000, repeat buyer. Ontario LTT = $3,500,000 x 2.5% - $13,525 = $73,975. MLTT = tax to $3,000,000 ($61,475) + 4.4% x $500,000 ($22,000) = $83,475. Total = $157,450. Under the rates before April 2026, the MLTT slice above $3,000,000 was taxed at a lower rate, so this buyer pays more than a buyer who closed earlier.
You can reproduce each line with the land transfer tax calculator.
First-time buyer refunds
| Ontario LTT refund | Toronto MLTT rebate | |
|---|---|---|
| Maximum | $4,000 (no tax on the first $368,000) | $4,475 (no MLTT on the first $400,000) |
| Age | 18 or older | 18 or older |
| Status | Canadian citizen or permanent resident | Canadian citizen or permanent resident (or becomes one within 18 months) |
| Ownership history | Never owned a home or an interest in one anywhere in the world | Never owned a home or an interest in one anywhere in the world |
| Spouse | If a spouse owned a home while your spouse, neither qualifies | Same principle |
| Occupancy | Principal residence within 9 months | Principal residence within 9 months |
| How to claim | On registration through your lawyer, or apply within 18 months | On registration, or apply within 18 months (a refund fee applies) |
Where only one buyer is a first-time buyer, the refund is generally reduced to that buyer's share of ownership. A parent added to title to help with a mortgage can cost the buyer part of the refund, because the parent is not a first-time buyer. Discuss the ownership structure with your lawyer before the offer.
Non-resident speculation taxes
- Ontario NRST: 25% of the value, province-wide, on residential property bought by foreign nationals, foreign corporations or taxable trustees, since 25 October 2022. Some rebates exist (for example, for a foreign national who later becomes a permanent resident within the time limit).
- Toronto MNRST: 10% on certain residential purchases by non-residents, since 1 January 2025, in addition to MLTT.
These apply on top of the general tax and are separate from the federal ban on non-Canadian buyers. See foreign buyer ban and non-resident taxes.
Things that change the bill
- Assumed debts and value of consideration. If you take over the seller's mortgage, it counts as part of the consideration.
- New homes with HST rebates assigned to the builder. Land transfer tax is charged on the value of the consideration; your lawyer will calculate it on the correct figure from the agreement.
- Adding a spouse to title later. A transfer between spouses can be exempt in some cases; others are taxable. Ask before you register.
Frequently asked questions
Do I pay Toronto MLTT if I buy in Vaughan, Markham or Mississauga?
No. MLTT applies only to property within the City of Toronto's boundaries. The rest of Ontario pays only provincial LTT.
When is Ontario land transfer tax paid?
On closing, when your lawyer registers the transfer electronically. You give the lawyer the funds a few days earlier.
Can I claim the first-time buyer refund after closing?
Yes, if it was not claimed on registration: apply to the Ministry of Finance (and to Toronto for MLTT) within 18 months.
Does the 2026 change to MLTT affect homes under $3 million?
No. The brackets up to $3,000,000 are unchanged; the new graduated rates apply only to the part of the price above $3,000,000.
Sources
- Ontario Ministry of Finance — land transfer tax rates, first-time buyer refund, NRST
- City of Toronto — MLTT rates as of 1 April 2026, rebates and MNRST
- Law Society of Ontario — find a licensed real estate lawyer
- Ontario e-Laws — Land Transfer Tax Act
