Land transfer tax is one of the largest closing costs when you buy a home in Ontario, and where you buy changes how much you pay.
Two taxes inside Toronto, one outside
Every buyer in Ontario pays the provincial land transfer tax, calculated on a sliding scale based on the purchase price. Buyers inside the City of Toronto pay a second, municipal land transfer tax on top. That means a home in Forest Hill or the Bridle Path carries roughly double the land transfer tax of a similarly priced home in Vaughan, Oakville or Mississauga.
First-time buyer refunds
Eligible first-time buyers can receive a refund of up to $4,000 on the provincial tax. In Toronto, eligible first-time buyers can also get a rebate of up to $4,475 on the municipal tax.
Higher rates for luxury homes in Toronto
Since April 1, 2026, Toronto charges higher municipal rates on the portion of a home's price above $3 million, from 4.40% up to 8.60%. On a $4 million home, combined provincial and Toronto land transfer tax is now roughly $191,950, compared with about $86,475 in Vaughan, King City or Oakville. See Toronto's new luxury land transfer tax rates for the full breakdown.
Plan for it early
Land transfer tax is paid on closing and generally can't be added to your mortgage, so it needs to come from your savings. Before you start viewing homes, Alexey will estimate your land transfer tax, legal fees and other closing costs so you know your true budget.
Alexey Kopeykin, Sales Representative, Zolo Realty Brokerage Inc. Published September 2026, updated October 2026. General information, not legal or tax advice; confirm details for your situation.