DirectOffers
When buying a home in Ontario, one of the most significant closing costs you’ll encounter is the Land Transfer Tax (LTT). But if you’re buying in Toronto, you need to be prepared for a double hit: the provincial LTT plus a municipal LTT. Let’s break it down.
Provincial Land Transfer Tax
All home buyers in Ontario pay the provincial Land Transfer Tax. It’s calculated on a sliding scale based on the purchase price:
| Purchase Price Bracket | Tax Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto Municipal Land Transfer Tax
If you’re buying in the City of Toronto, you also pay a municipal LTT. Up to $3,000,000, Toronto uses the same brackets and rates as the province, so below that price you pay double.
Above $3,000,000, Toronto charges higher graduated rates. From April 1, 2026, on a home with one or two single-family residences:
| Portion of the Price | Toronto Rate |
|---|---|
| $3,000,001 to $4,000,000 | 4.40% |
| $4,000,001 to $5,000,000 | 5.45% |
| $5,000,001 to $10,000,000 | 6.50% |
| $10,000,001 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
First-Time Home Buyer Rebate
The good news is that first-time buyers may qualify for rebates:
- Provincial Rebate: Up to $4,000
- Toronto Municipal Rebate: Up to $4,475
These rebates can significantly reduce your closing costs if you’re a first-time buyer.
Example Calculation
For a $900,000 home in Toronto:
- Provincial LTT: ~$14,475
- Toronto Municipal LTT: ~$14,475
- Total LTT: ~$28,950
With first-time buyer rebates:
- Total after rebates: ~$20,475
How DirectOffers Helps
While we can’t reduce your Land Transfer Tax, our commission rebate can help offset this cost. On a $900,000 purchase, you could receive up to $18,000 back at closing, covering a significant portion of your LTT.
Calculate your potential savings with our free calculator on the homepage.
