Toronto Land Transfer Tax Explained
Toronto buyers pay two land transfer taxes at closing. Knowing the exact amount changes how you plan your deposit and financing.
5 min read | Updated 2026-05-10
Ontario and Toronto: two separate taxes
Every property purchase in Ontario triggers provincial land transfer tax. If the property is within the City of Toronto, you also pay a municipal land transfer tax on top. Both are calculated on a graduated scale based on the purchase price.
On a home purchased for $800,000 in Toronto, the combined land transfer taxes can exceed $22,000. That is a closing cost that must be planned alongside your down payment, legal fees, and adjustments.
First-time buyer rebates
Ontario and Toronto both offer land transfer tax rebates for first-time buyers. The Ontario rebate covers up to $4,000 and the Toronto municipal rebate covers up to $4,475. You may qualify for both if you have never owned a home anywhere in the world.
The rebate application is handled through your real estate lawyer at closing. Make sure your lawyer confirms your eligibility and files the claim before the transaction closes.
Plan your full closing costs early
Land transfer tax is the largest closing cost most buyers face, but it is not the only one. Legal fees, title insurance, home inspection, appraisal, and moving expenses should all be included in your budget.
A buyer consultation can help you map out these costs so the final number does not come as a surprise on closing day.