Buying a home in Toronto: every cost from offer to keys
Checked against primary sources
A Toronto purchase needs your down payment plus closing costs: Ontario and Toronto land transfer taxes ($24,950 on an $800,000 home before rebates), sales tax on any mortgage insurance premium, registration, legal and adjustments. First-time buyers get up to $8,475 back. Budget it before you make an offer.
Toronto closing costs: your cash-to-close receipt
Both land transfer taxes on the dated City schedules, first-time rebates, insurance sales tax, registration and every closing line.
| Ontario land transfer tax | $13,475 |
| Ontario first-time buyer refund | −$4,000 |
| Toronto municipal land transfer tax | $13,475 |
| Toronto first-time buyer rebate | −$4,475 |
| 8% Ontario sales tax on the insurance premium · cash at closing | $1,897 |
| Land registration fees (deed + mortgage) | $173 |
| Toronto MLTT administration fee (incl. HST) | $116 |
| Lawyer: fees and disbursements (estimate) | $2,000 |
| Title insurance (estimate) | $350 |
| Home inspection / appraisal (estimate) | $550 |
| Tax and utility adjustments (estimate) | $1,500 |
| Taxes, fees and estimates | $25,061 |
|---|
- Land transfer tax after rebates
- $18,475
- Extra for being inside Toronto
- $9,000
- Mortgage incl. insurance premium
- $788,715
- 3.10% premium: $23,715 added to the loan
- Effective tax rate on the price
- 2.17%
Estimate, not advice. Taxes from ontario.ca and toronto.ca schedules; legal, title, inspection and adjustment lines are our estimates. Your lawyer's statement of adjustments is final.
Cash to close $110,061; land transfer tax $18,475
- Down payment: $85K
- Land transfer tax: $18K
- Insurance sales tax: $2K
- Legal, title, registration: $3K
- Other estimates: $2K
| Part of the price | Rate | Ontario | Toronto |
|---|---|---|---|
| $0 – $55,000 | 0.5% | $275 | $275 |
| $55,000 – $250,000 | 1.0% | $1,950 | $1,950 |
| $250,000 – $400,000 | 1.5% | $2,250 | $2,250 |
| $400,000 – $2,000,000 | 2.0% | $9,000 | $9,000 |
| Total before rebates | $13,475 | $13,475 |
What is driving this result
- Toronto's municipal tax mirrors Ontario's up to $3 million, so inside the city you pay about double: $9,000 more than the same home in Mississauga or Vaughan at this price.
- First-time rebates cover Ontario tax on roughly the first $368,000 and Toronto tax on the first $400,000; above that you pay the difference.
- The $1,897 sales tax on the insurance premium is the closing cost buyers most often miss: it can't be added to the mortgage.
- Toronto's higher bands start above $3 million; this price is below them.
| Price ↓ / Down payment → | 5% | 10% | 20% | 35% |
|---|---|---|---|---|
| $500,000 | $35,684 | $60,280 | $109,164 | $184,164 |
| $750,000 | $71,404 | $95,838 | $169,164 | $281,664 |
| $1,000,000 | $107,124 | $131,396 | $229,164 | $379,164 |
| $1,500,000 | $349,164 | $349,164 | $349,164 | $574,164 |
| $2,500,000 | $594,164 | $594,164 | $594,164 | $969,164 |
| $4,000,000 | $988,164 | $988,164 | $988,164 | $1,588,164 |
Your saved scenarios
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Assumptions & sources
Assumptions
- Land transfer tax schedules for one or two single-family residences. Ontario's rates have applied since January 1, 2017; Toronto's bands above $3 million since April 1, 2026.
- First-time refunds: Ontario up to $4,000, Toronto up to $4,475, both claimed at registration. Ontario pro-rates the refund to the qualifying buyers' share; Toronto's page doesn't say, so we pro-rate it the same way. Confirm with the City if it matters.
- Non-resident speculation taxes: Ontario 25% anywhere in Ontario; Toronto adds 10%. Exemptions (e.g. spouses of citizens, permanent-resident rebate) aren't modelled.
- Registration: two electronic instruments (transfer and mortgage) at $86 each from November 2, 2026 ($85 before).
- Default-insurance premium: CMHC table (Sagen and Canada Guaranty match), +0.20 points above 25 years; the 8% Ontario sales tax on it is cash at closing.
- Land transfer tax is charged on the price excluding HST on new homes.
Sources
- Government of Ontario — Calculating land transfer tax (effective January 1, 2017). Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers (effective January 1, 2017). Checked .
- City of Toronto — Municipal land transfer tax (MLTT) rates and fees (effective April 1, 2026). Checked .
- Toronto City Council — Decision 2025.EX28.1: new MLTT bands above $3 million (effective April 1, 2026). Checked .
- City of Toronto — MLTT rebate opportunities for first-time purchasers. Checked .
- Government of Ontario — Non-resident speculation tax (effective October 25, 2022). Checked .
- ServiceOntario — Bulletin 2026-04: land registration fees from November 2, 2026 (effective November 2, 2026). Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase. Checked .
- CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
- Government of Ontario — Retail sales tax on insurance premiums (8%). Checked .
For land transfer tax anywhere in Canada, the MITEY network's dedicated calculator is LandTransferCalculator.com; this receipt adds the Toronto-specific lines a broker client needs.
What are the steps to buying a home in Toronto with a broker?
- Budget the cash, not just the price
Work out the down payment and closing costs together (the receipt above). In the example below the closing costs alone come to 3.0% of the price.
- Get a pre-approval and a rate hold
A broker can shop several lenders; ask how long the rate is held and what the lender still has to verify. Pre-approval in Toronto.
- Make the offer conditional where you can
Financing, inspection and (for condos) a status certificate review protect the deposit. Your lawyer reads the agreement before it's firm.
- Compare the commitment before you waive conditions
Rate, penalty method, privileges and fees, side by side with your bank's. Offer comparison.
- Close
Your lawyer registers the transfer and mortgage, claims the first-time refunds, pays both land transfer taxes and hands you the statement of adjustments.
Two first-time buyers, a resale condo inside the City of Toronto, closing after November 2, 2026, 30-year insured amortization.
| Price | $850,000 |
|---|---|
| Down payment | $85,000Minimum is $60,000 |
| Mortgage before insurance | $765,000 |
| Ontario land transfer tax | $13,475minus the $4,000 first-time refund |
| Toronto land transfer tax | $13,475minus the $4,475 first-time rebate |
| Insurance premium (added to the loan) | $25,2453.30% at 90.0% loan-to-value, 30 years |
| 8% sales tax on the premium (cash) | $2,020 |
| Registration, MLTT fee, legal, title, inspection, adjustments | $4,689legal, title, inspection and adjustments are our estimates |
| Cash needed on closing day | $110,183$85,000 down + $25,183 in taxes, fees and estimates |
The rebates cut the two taxes by $8,475, but the premium's sales tax is still $2,020 in cash. That's the line first-time buyers most often miss because the premium itself is added to the mortgage.
Open this example in the calculator →Computed November 2, 2026.
How is Toronto land transfer tax calculated?
Both taxes are marginal: each slice of the price is taxed at its own rate, like income tax. Ontario charges 0.5% on the first $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million and 2.5% above that (for one or two single-family homes). Toronto's municipal tax uses the same slices up to $3 million, so below $3 million the two taxes are equal.
Above $3 million the City's rate depends on the closing date: 4.40% to 8.60% from April 1, 2026; 3.5% to 7.5% from January 2024 to March 2026; and a flat 2.5% before 2024. The calculator's closing-date setting picks the right schedule. The City also charges a $103 administration fee plus HST on each MLTT transaction, which is on the receipt.
Source: City of Toronto, Municipal land transfer tax (MLTT) rates and fees, effective April 1, 2026. Checked .Source: Government of Ontario, Calculating land transfer tax, effective January 1, 2017. Checked .What is the land transfer tax on a Toronto home at every price?
Here is the engine's answer at twelve prices. "First-time buyer pays" assumes every buyer qualifies for both rebates; "outside Toronto" is the same home in Mississauga, Vaughan, Markham or anywhere else in Ontario.
| Price | Ontario | Toronto | Total | First-time buyer pays | Same home outside Toronto |
|---|---|---|---|---|---|
| $400,000 | $4,475 | $4,475 | $8,950 | $475 | $4,475 |
| $500,000 | $6,475 | $6,475 | $12,950 | $4,475 | $6,475 |
| $650,000 | $9,475 | $9,475 | $18,950 | $10,475 | $9,475 |
| $800,000 | $12,475 | $12,475 | $24,950 | $16,475 | $12,475 |
| $1,000,000 | $16,475 | $16,475 | $32,950 | $24,475 | $16,475 |
| $1,250,000 | $21,475 | $21,475 | $42,950 | $34,475 | $21,475 |
| $1,500,000 | $26,475 | $26,475 | $52,950 | $44,475 | $26,475 |
| $2,000,000 | $36,475 | $36,475 | $72,950 | $64,475 | $36,475 |
| $3,000,000 | $61,475 | $61,475 | $122,950 | $114,475 | $61,475 |
| $4,000,000 | $86,475 | $105,475 | $191,950 | $183,475 | $86,475 |
| $5,000,000 | $111,475 | $159,975 | $271,450 | $262,975 | $111,475 |
| $10,000,000 | $236,475 | $484,975 | $721,450 | $712,975 | $236,475 |
Below about $368,333 a first-time buyer owes no Ontario tax, and below $400,000 no Toronto tax. Ontario's own page rounds its threshold to "the first $368,000".
What are the land transfer tax rates in Toronto?
Ontario's schedule for one or two single-family homes has applied since January 1, 2017. Toronto's has matched it up to $3 million throughout; above $3 million the City has used three schedules, and the one that applies is the one in force on your closing (registration) date.
| Part of the price | Rate | Tax on a full band |
|---|---|---|
| $0 – $55,000 | 0.50% | $275 |
| $55,000 – $250,000 | 1.00% | $1,950 |
| $250,000 – $400,000 | 1.50% | $2,250 |
| $400,000 – $2,000,000 | 2.00% | $32,000 |
| $2,000,000 – and up | 2.50% | — |
| Part of the price | Rate | Tax on a full band |
|---|---|---|
| $0 – $55,000 | 0.50% | $275 |
| $55,000 – $250,000 | 1.00% | $1,950 |
| $250,000 – $400,000 | 1.50% | $2,250 |
| $400,000 – $2,000,000 | 2.00% | $32,000 |
| $2,000,000 – $3,000,000 | 2.50% | $25,000 |
| $3,000,000 – $4,000,000 | 4.40% | $44,000 |
| $4,000,000 – $5,000,000 | 5.45% | $54,500 |
| $5,000,000 – $10,000,000 | 6.50% | $325,000 |
| $10,000,000 – $20,000,000 | 7.55% | $755,000 |
| $20,000,000 – and up | 8.60% | — |
| Part of the price | Rate | Tax on a full band |
|---|---|---|
| $0 – $55,000 | 0.50% | $275 |
| $55,000 – $250,000 | 1.00% | $1,950 |
| $250,000 – $400,000 | 1.50% | $2,250 |
| $400,000 – $2,000,000 | 2.00% | $32,000 |
| $2,000,000 – $3,000,000 | 2.50% | $25,000 |
| $3,000,000 – $4,000,000 | 3.50% | $35,000 |
| $4,000,000 – $5,000,000 | 4.50% | $45,000 |
| $5,000,000 – $10,000,000 | 5.50% | $275,000 |
| $10,000,000 – $20,000,000 | 6.50% | $650,000 |
| $20,000,000 – and up | 7.50% | — |
| Part of the price | Rate | Tax on a full band |
|---|---|---|
| $0 – $55,000 | 0.50% | $275 |
| $55,000 – $250,000 | 1.00% | $1,950 |
| $250,000 – $400,000 | 1.50% | $2,250 |
| $400,000 – $2,000,000 | 2.00% | $32,000 |
| $2,000,000 – and up | 2.50% | — |
How do you work out Toronto land transfer tax by hand?
Split the price into bands, multiply each slice by its rate, and add. Five examples, each produced by the same engine as the calculator above:
1. A $450,000 condo
| $55,000 × 0.50% | $275 |
| $195,000 × 1.00% | $1,950 |
| $150,000 × 1.50% | $2,250 |
| $50,000 × 2.00% | $1,000 |
| Ontario | $5,475 |
|---|
Toronto's tax is the same at this price, so the total is $10,950.
2. A $700,000 home, first-time buyers
Both taxes are $10,475 each. Ontario refunds up to $4,000 and Toronto up to $4,475, so the buyers pay $12,475.
3. A $1,200,000 home, one of two buyers is first-time
Gross tax is $40,950. If the first-time buyer owns half, Ontario's refund is pro-rated to $2,000; Toronto's page doesn't say how it splits, and if it's pro-rated the same way the City rebate is $2,238. Net: $36,713.
4. A $2,500,000 house
| $55,000 × 0.50% | $275 |
| $195,000 × 1.00% | $1,950 |
| $150,000 × 1.50% | $2,250 |
| $1,600,000 × 2.00% | $32,000 |
| $500,000 × 2.50% | $12,500 |
| Toronto | $48,975 |
|---|
Ontario's tax is $48,975 (its 2.5% band starts at $2 million and Toronto's 2.5% band runs to $3 million), for $97,950 in total.
5. A $4,500,000 house under each Toronto schedule
| $55,000 × 0.50% | $275 |
| $195,000 × 1.00% | $1,950 |
| $150,000 × 1.50% | $2,250 |
| $1,600,000 × 2.00% | $32,000 |
| $1,000,000 × 2.50% | $25,000 |
| $1,000,000 × 4.40% | $44,000 |
| $500,000 × 5.45% | $27,250 |
| Toronto, from April 1, 2026 | $132,725 |
|---|
The City's share was $118,975 for closings from January 2024 to March 2026 and $98,975 before 2024, so the April 2026 bands added $13,750. Total with Ontario's tax now: $231,700.
Who gets the first-time buyer rebates, and how much?
Ontario refunds up to $4,000 and Toronto up to $4,475. To qualify you must be at least 18, a Canadian citizen or permanent resident (or become one within 18 months), never have owned a home anywhere in the world, and move in within nine months. Your spouse can't have owned a home while you were together.
If only one of two buyers qualifies, Ontario pays the refund in proportion to that buyer's share of the home. Toronto's rebate page doesn't spell out the split; we apply the same proportion and flag it. Both are usually claimed by your lawyer when the transfer is registered; otherwise you have 18 months to apply.
Source: Government of Ontario, Land transfer tax refunds for first-time homebuyers, effective January 1, 2017. Checked .Source: City of Toronto, MLTT rebate opportunities for first-time purchasers. Checked .What changed for Toronto homes over $3 million in 2026?
City Council approved the higher bands in December 2025 (decision 2025.EX28.1) for conveyances from April 1, 2026. They replaced the luxury bands Toronto had used since January 1, 2024: 3.5% ($3–4M), 4.5% ($4–5M), 5.5% ($5–10M), 6.5% ($10–20M) and 7.5% above $20M. Before 2024, everything above $2 million was taxed at 2.5%.
| Price | Jan 2024 – Mar 2026 | From April 1, 2026 | Increase |
|---|---|---|---|
| $3,500,000 | $78,975 | $83,475 | $4,500 |
| $4,000,000 | $96,475 | $105,475 | $9,000 |
| $5,000,000 | $141,475 | $159,975 | $18,500 |
| $7,500,000 | $278,975 | $322,475 | $43,500 |
| $10,000,000 | $416,475 | $484,975 | $68,500 |
What else do Toronto buyers pay on closing day?
- Sales tax on mortgage insurance. With less than 20% down, the CMHC-style premium is added to the mortgage, but Ontario's 8% sales tax on it is due in cash.
- Registration. $86 per electronic instrument from November 2, 2026; a purchase with a mortgage registers two.
- Non-resident taxes. Foreign nationals pay Ontario's 25% non-resident speculation tax anywhere in Ontario, plus Toronto's 10% inside the city.
- Your lawyer, title insurance, inspection and adjustments. No regulator publishes these; get quotes. Our defaults are estimates you can change.
Is it cheaper to buy just outside Toronto?
On land transfer tax, yes: the municipal tax stops at the city line. At $1,300,000 the saving is $22,475. But property tax rates in the 905 differ (Mississauga, Brampton and Oakville charge more per dollar of assessment than Toronto), so compare the annual bill too. Which areas pay the Toronto tax, and MortgageCalculatorOntario.ca has city-by-city property tax.
Key terms
- Municipal land transfer tax (MLTT)
- The City of Toronto's own land transfer tax, charged on top of Ontario's for properties inside city limits.
- Statement of adjustments
- Your lawyer's closing summary: price, deposits, prepaid property tax and utilities, and the final amount you owe.
- Registration
- Recording the transfer and the mortgage on Ontario's land registry; each electronic instrument has a fee.
What this means for you
Save for the receipt, not the price tag. On a typical first condo the cash beyond the down payment is several thousand dollars even after rebates, and lenders want to see it in your account before closing.
Ask your lawyer to claim both rebates at registration. Otherwise you pay the full tax and wait up to 18 months for refunds.
Above $3 million, the closing date matters. The same home cost more in Toronto tax from April 1, 2026; check the schedule that applies to your registration date.
Use a broker for the mortgage, not the math. These costs are set by government schedules; what a broker can change is the rate, penalty and terms. How to choose one.
Frequently asked questions
Do you pay land transfer tax twice in Toronto?
Yes. Inside the City of Toronto you pay Ontario's land transfer tax and the City's municipal land transfer tax. They use the same rates up to $3 million, so the total is double the Ontario amount below that.
How much is Toronto land transfer tax on a $1 million home?
$16,475 to Ontario plus $16,475 to Toronto, $32,950 in total. First-time buyers who all qualify pay $24,475.
Is land transfer tax included in my mortgage?
No. Land transfer tax is paid in cash on closing day through your lawyer. Lenders also want to see that you have it, alongside your down payment.
Do first-time buyers pay land transfer tax in Toronto?
Only above the rebate thresholds. Ontario's refund covers the tax on roughly the first $368,000 and Toronto's on the first $400,000; above that, first-time buyers pay the difference.
Does land transfer tax apply to new condos?
Yes. It's charged on the price excluding HST, when the transfer is registered. New-home HST rebates are separate and are often credited by the builder.
Sources
- Government of Ontario — Calculating land transfer tax (effective January 1, 2017). Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers (effective January 1, 2017). Checked .
- City of Toronto — Municipal land transfer tax (MLTT) rates and fees (effective April 1, 2026). Checked .
- Toronto City Council — Decision 2025.EX28.1: new MLTT bands above $3 million (effective April 1, 2026). Checked .
- City of Toronto — MLTT rebate opportunities for first-time purchasers. Checked .
- Government of Ontario — Non-resident speculation tax (effective October 25, 2022). Checked .
- ServiceOntario — Bulletin 2026-04: land registration fees from November 2, 2026 (effective November 2, 2026). Checked .
- Government of Ontario — Retail sales tax on insurance premiums (8%). Checked .
- Canada Revenue Agency — RC4028: GST/HST new housing rebate (incl. Ontario new housing rebate). Checked .
- Canada Revenue Agency — First-time home buyers' GST/HST rebate (incl. Ontario first-time buyers' rebate) (effective March 20, 2025). Checked .
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.