What changed on April 1, 2026
City Council approved higher municipal land transfer tax (MLTT) rates for homes with one or two single-family residences on December 17, 2025, effective April 1, 2026. Only the part of the price above $3 million is affected:
| Part of the price | Rate until March 31, 2026 | Rate from April 1, 2026 |
|---|---|---|
| $3M – $4M | 3.5% | 4.40% |
| $4M – $5M | 4.5% | 5.45% |
| $5M – $10M | 5.5% | 6.50% |
| $10M – $20M | 6.5% | 7.55% |
| Over $20M | 7.5% | 8.60% |
Example: a $3.5 million house
- Toronto MLTT on the first $3 million: $61,475.00 (same as before).
- On the next $500,000 at 4.40%: $22,000.
- Toronto MLTT: $83,475.00 (it was $78,975.00).
- Ontario LTT: $73,975.00 (2.5% above $2 million, unchanged).
- Total: $157,450.00.
Total land transfer tax for high-value Toronto homes
| Price | Ontario | Toronto MLTT | Total |
|---|---|---|---|
| $2,000,000 | $36,475 | $36,475 | $72,950 |
| $2,500,000 | $48,975 | $48,975 | $97,950 |
| $3,000,000 | $61,475 | $61,475 | $122,950 |
| $3,500,000 | $73,975 | $83,475 | $157,450 |
| $4,000,000 | $86,475 | $105,475 | $191,950 |
| $5,000,000 | $111,475 | $159,975 | $271,450 |
| $7,500,000 | $173,975 | $322,475 | $496,450 |
| $10,000,000 | $236,475 | $484,975 | $721,450 |
Who is not affected
- Anyone buying at or below $3,000,000 — rates there did not change.
- Buildings with three or more units and other non-single-family property follow separate schedules.
- Homes outside the City of Toronto pay only the Ontario tax.
Agreements signed before the change but closing after April 1, 2026 may have transition rules — ask your lawyer before you firm up.
Quick reference: closing day in Ontario
| Cost | Typical amount | Paid when |
|---|---|---|
| Ontario land transfer tax | Brackets from 0.5% to 2.5% | Closing (via lawyer) |
| Toronto MLTT (Toronto only) | Same brackets to $3M, higher above | Closing (via lawyer) |
| Legal fees + disbursements | About $1,500 – $3,000 | Closing |
| Title insurance | A few hundred dollars | Closing |
| PST on CMHC premium | 8% of the premium | Closing (cash) |
Your lawyer will send a statement of adjustments a few days before closing with the exact amount to wire, including land transfer tax net of any first-time buyer refunds.
Common questions
- Is land transfer tax deductible? Not for a home you live in. For a rental property it is added to the cost of the property.
- Do I pay it on a gift from a parent? Usually only on the value of what you pay or take over (for example a mortgage), so a pure gift can be close to tax-free — ask your lawyer.
- What about the 25% Non-Resident Speculation Tax? It applies across Ontario to foreign nationals and some foreign entities, on top of land transfer tax.
Rates were checked against the Ontario Ministry of Finance and City of Toronto pages on 5 November 2026.
FAQ
What are Toronto’s land transfer tax rates above $3 million in 2026?
4.40% from $3M to $4M, 5.45% to $5M, 6.50% to $10M, 7.55% to $20M and 8.60% above $20M, from April 1, 2026.
How much land transfer tax on a $3.5 million home in Toronto?
$157,450.00 in total: $73,975.00 Ontario plus $83,475.00 Toronto MLTT.
Did rates change for homes under $3 million?
No. Up to $3 million the Toronto rates are the same as before and match Ontario’s.
Sources (checked 5 November 2026): Land Transfer Tax Act (Ontario) and Ontario Ministry of Finance “Land transfer tax refunds for first-time homebuyers” (ontario.ca, max $4,000 since Jan 1, 2017); City of Toronto, “Municipal Land Transfer Tax (MLTT) rates and fees” (toronto.ca: graduated rates above $3M from April 1, 2026, Council decision of Dec 17, 2025); TRREB, “Land transfer tax rebates – provincial and Toronto” (Toronto rebate max $4,475); NOW Toronto, Dec 18, 2025.