If you're buying a home in Toronto, it's important to understand the costs involved beyond the purchase price—including the Land Transfer Tax (LTT). This one-time tax is payable upon closing and in Ontario, is structured on a sliding scale (see below).

Torontonians face an extra financial hurdle when purchasing property due to the Municipal Land Transfer Tax (MLTT), which mirrors the provincial tax structure. This means buyers in Toronto must pay both the Ontario LTT and the Toronto MLTT, effectively doubling the tax amount.

Buying a home in Toronto is an exciting and rewarding investment, and understanding these costs upfront helps you plan your budget effectively. While the additional MLTT increases the upfront costs, the city's vibrant market and long-term property value growth make it worthwhile. If you're a first-time buyer, take advantage of available rebates to ease the financial impact.

Example Land Transfer Tax Calculation

Example Calculation

A home purchased for $600,000 would incur:

• 0.5% on the first $55,000 = $275
• 1.0% on the next $195,000 = $1,950
• 1.5% on the next $150,000 ($400,000 - $250,000) = $2,250
• 2.0% on the remaining $200,000 ($600,000 - $400,000) = $4,000
• Total LTT: $8,475