Toronto Land Transfer Tax: Calculation Guide for Condo Buyers
How to Calculate Land Transfer Tax When Buying a Condo in Toronto
Purchasing a condo in Toronto is an exciting milestone, especially for renters who are ready to become homeowners. However, buying a property involves more than the purchase price. One important closing cost to understand is Land Transfer Tax (LTT).
If you're purchasing a condo in Toronto, you may need to pay both Ontario Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax (MLTT). Understanding how these taxes are calculated can help you budget accurately and avoid unexpected costs at closing.
What Is Land Transfer Tax?
Land Transfer Tax is a tax paid when you acquire an interest in real property. In Ontario, buyers generally pay provincial Land Transfer Tax. Buyers purchasing property within the City of Toronto may also be required to pay the City's Municipal Land Transfer Tax.
The amount depends on the property's purchase price and the applicable tax rates.
Ontario Land Transfer Tax
For most residential properties, Ontario Land Transfer Tax is calculated using marginal tax rates:
0.5% on the first $55,000
1.0% on the portion from $55,000 to $250,000
1.5% on the portion from $250,000 to $400,000
2.0% on the portion over $400,000
For properties containing one or two single-family residences, a higher 2.5% rate applies to the portion over $2 million. This higher rate does not generally apply to condos, which fall under the applicable rate for other types of property.
The tax is calculated progressively, meaning each rate applies only to the portion of the purchase price within that range.
Example: $600,000 Toronto Condo
Suppose you purchase a condo for $600,000.
The Ontario Land Transfer Tax would be:
0.5% of $55,000 = $275
1.0% of $195,000 = $1,950
1.5% of $150,000 = $2,250
2.0% of $200,000 = $4,000
Total Ontario Land Transfer Tax = $8,475
Toronto Municipal Land Transfer Tax
If the property is located within the City of Toronto, you may also have to pay the Toronto Municipal Land Transfer Tax.
For a $600,000 condo, the applicable MLTT rates are:
0.5% of $55,000 = $275
1.0% of $195,000 = $1,950
1.5% of $150,000 = $2,250
2.0% of $200,000 = $4,000
Total Toronto Municipal Land Transfer Tax = $8,475
For condos and other properties that are not classified as properties containing one or two single-family residences, Toronto's MLTT rate is 2.0% on the portion over $400,000.
2026 Toronto MLTT Update
As of April 1, 2026, Toronto introduced higher graduated MLTT rates for certain high-value residential properties containing at least one and no more than two single-family residences.
For these properties, rates increase for portions above $2 million, with rates reaching as high as 8.6% for amounts over $20 million.
These higher rates do not apply to condos and other properties classified as non-single-family residences. For those properties, the MLTT rate remains 2.0% on the portion over $400,000.
Total Land Transfer Tax on a $600,000 Condo
For a $600,000 Toronto condo:
Ontario Land Transfer Tax: $8,475
Toronto Municipal Land Transfer Tax: $8,475
Total Land Transfer Tax: $16,950
Therefore, a buyer who does not qualify for any first-time homebuyer relief would pay $16,950 in combined provincial and municipal Land Transfer Tax on a $600,000 Toronto condo.
First-Time Homebuyer Tax Relief
If you're purchasing your first home, you may qualify for both an Ontario First-Time Homebuyer Refund and a Toronto First-Time Purchaser Rebate.
Ontario First-Time Homebuyer Refund
Eligible first-time homebuyers may receive an Ontario Land Transfer Tax refund of up to $4,000.
To qualify, buyers must meet specific requirements. For example, the purchaser must generally be at least 18 years old and must not have previously owned a home or an interest in a home anywhere in the world. Additional requirements apply, including rules concerning spouses.
Toronto First-Time Purchaser Rebate
Eligible first-time purchasers buying a qualifying residential property in Toronto may receive a Municipal Land Transfer Tax rebate of up to $4,475. The program applies to both newly constructed and resale residential properties.
Toronto also has specific eligibility requirements, including requirements related to occupying the property as a principal residence and Canadian citizenship or permanent resident status.
Example: $600,000 Condo Purchased by an Eligible First-Time Buyer
Using the same $600,000 purchase:
Ontario LTT: $8,475
Maximum Ontario first-time homebuyer refund: −$4,000
Ontario LTT after refund: $4,475
Toronto MLTT: $8,475
Maximum Toronto first-time purchaser rebate: −$4,475
Toronto MLTT after rebate: $4,000
Total LTT after maximum first-time buyer relief: $8,475
In this example, an eligible first-time buyer could potentially reduce the combined Land Transfer Tax from $16,950 to $8,475.
The actual refund or rebate available depends on the purchaser's eligibility and circumstances. If more than one person is purchasing the property and not everyone qualifies as a first-time buyer, the available relief may be reduced.
Other Condo Closing Costs to Budget For
Land Transfer Tax is only one part of the cost of buying a condo. Buyers should also budget for other expenses associated with the transaction.
Potential costs may include:
Legal fees and disbursements
Title insurance
Home inspection, where applicable
Mortgage-related costs
Property appraisal, where required by the lender
Condo status certificate and legal review
Adjustments for prepaid property taxes or condominium fees
Moving expenses
The actual cost of these services can vary depending on the property, lender, lawyer and transaction.
How to Calculate Your Toronto Land Transfer Tax
When estimating your Land Transfer Tax, follow these steps:
Determine the property's purchase price.
Calculate the Ontario Land Transfer Tax using the applicable marginal rates.
Determine whether Toronto Municipal Land Transfer Tax applies.
Calculate the Toronto MLTT using the applicable rates.
Add the provincial and municipal amounts together.
Determine whether you qualify for the Ontario first-time homebuyer refund.
Determine whether you qualify for the Toronto first-time purchaser rebate.
Subtract any applicable refunds or rebates.
Budget for other closing costs associated with the purchase.
Final Thoughts
Understanding Land Transfer Tax is an important part of planning for a Toronto condo purchase. Because buyers within the City of Toronto may be responsible for both provincial and municipal Land Transfer Tax, the combined amount can represent a significant upfront expense.
For example, a $600,000 Toronto condo has a combined LTT of $16,950 before applicable first-time buyer relief. An eligible first-time buyer could potentially reduce that amount to $8,475 after the maximum Ontario refund and Toronto rebate.
Planning for Land Transfer Tax alongside your down payment, legal costs, mortgage expenses and other closing costs can help make your home purchase more predictable and financially manageable.
Note: Land Transfer Tax rates, rules and eligibility requirements can change. The information in this article is provided for general information only. Buyers should confirm the applicable amounts and eligibility requirements with the Ontario government, the City of Toronto and their legal or tax professional before completing a purchase.
