How Much Is Land Transfer Tax in Toronto

May 26, 2025 | Buying a Home

Toronto real estate is one of the most complex markets in Canada. It’s not just the high property values; it’s in all of the minute details you need to keep track of when buying or selling a house. (And let’s not kid ourselves; it’s also the prices! Toronto real estate is the most expensive in Canada, with the possible exception of Vancouver.)

Buyers often have questions about the closing process and the costs involved. Today’s post will help unravel the mystery of how to calculate land transfer tax in Toronto.

Searching for your perfect home in Toronto’s West End? You may just find it while browsing our latest listings right here.

Ontario Land Transfer Tax

No matter where you buy a house in Ontario, land transfer taxes will apply. It’s one of those very few certainties in life! You can calculate the fee based on a tiered percentage of the price of the property.

.5% on the first $55,000 (Can you believe that was once based on the average price of a house – way back in 1976?)
1% on the next $195,000 ($55,000 to $250,000)
1.5% on the next $150,000 ($250,000 to $400,000)
2% on the amount from $400,000 to $2 million (a maximum of $1.6 million)
2.5% on all amounts above $2 million for homes that contain one or two residences

To see how this works in real life, let’s imagine a case study where you decide to buy a home for $1.2 million, which is about average for Toronto real estate as of 2025. Using our trusty Toronto land transfer calculator, you can see that you will end up owing $20,475. For the number crunchers among us, the breakdown is below.

0.5% x $55,000 = $275
1% x $195,000 = $1,950
1.5% x $150,000 = $2,250
2% x $800,000 = $16,000

Add it all up, and you see where the $20,475 came from. Land transfer fees are the most substantial closing costs you will have to cover. Plus, you cannot include them in your mortgage like you can with mortgage insurance. It has to be paid out-of-pocket before you can take possession of your new home. Unfortunately for Toronto residents, this is only part of the story.

Looking for more resources for a worry-free purchase? The posts below are a great place to start:

What Is the Land Transfer Tax in Toronto?

Once you’ve figured out your provincial obligations, you’re almost in the clear. Almost. However, the City of Toronto has its own municipal land transfer tax over and above what you pay to the province.

If you want a fast estimate, take your original calculation and double it. For properties priced at $2 million or less, the tiered percentages are the same for both the city and the province.

When buying a high-end home, it gets more complicated – and expensive, thanks to the recently implemented luxury tax. The total amount owing keeps climbing based on the price of the house. Here’s how it looks for properties priced at $3 million and more.

3.5% from $3 million to $4 million
4.5% from $4 million to $5 million
5.5% from 5 million to $10 million
6.5% from $10 million to $20 million
7.5% on all homes more than $20 million

Imagine being in a position to buy a $15 million estate. Your Toronto real estate tax would work out to $741,475, and that’s only part of your closing costs. Add another $361,475 for the province for a total of $1,102,950.

You can also use this helpful Land Transfer Tax calculator to calculate your municipal (Toronto) and provincial (Ontario) Land Transfer taxes.

Other Closing Costs to Add to the Mix

Land transfer taxes are often top-of-mind when buying a house due to the typically large dollar amounts. However, there are other expenses associated with moving. There are legal fees and disbursements as a lawyer reviews the documents, checks for encumbrances, and arranges for title insurance.

Beyond that, you’ll also want to be prepared for appraisal fees, home inspection costs, utility hookups, and HST for newly built homes, all while arranging for professional movers and property insurance.

Closing costs can vary, but it’s advisable to save at least 1-4% of the total purchase price when buying a home in Ontario. When buying in Toronto, you’ll want at least 2-5% to cover the additional land transfer tax.

Looking for your ideal neighbourhood in Toronto’s West End? The posts below can help you narrow it down:

First-Time Home Buyer Rebates to the Rescue

Real estate prices are already high enough, and having both a provincial and municipal tax can be particularly cumbersome for first-time buyers. Fortunately, there is a little relief for those who are trying to get into the market.

The government of Ontario offers up to $4,000 as an instant rebate for first-time buyers. Toronto also has a plan in place, with a savings of $4,475 on the municipal tax. Together, both rebates can save a total of $8,475, which represents a significant reduction in closing costs.

Between the rebates, other government programs, and the help of an experienced real estate agent, getting into Toronto’s challenging yet exciting real estate market can be more accessible than you think.

Our West Toronto Realtors® are happy to guide you, whether you’re downsizing, searching for your first home, or moving up the property ladder. Contact us today at 416-788-1823 or email kim@kimkehoe.com to take the first step.