Short Answer: Toronto buyers generally need to budget for both Ontario land transfer tax and Toronto municipal land transfer tax. That double layer can make closing costs meaningfully higher than a comparable purchase elsewhere in Ontario.
Use the Calculator
Formula and Method
Toronto closing land transfer tax = Ontario LTT + Toronto MLTT − eligible rebates
Calculate the provincial and municipal schedules separately because each applies its own brackets and rebate rules. Add the two net amounts for the combined closing estimate, then verify current Toronto rules and transaction eligibility with the lawyer handling the purchase.
Worked Example
Calculate Ontario tax
$600,000 example → $8,475 before rebate
The provincial schedule applies throughout Ontario.
Calculate Toronto municipal tax
apply Toronto brackets separately to the same consideration
Toronto adds a second land transfer tax rather than replacing the provincial tax.
Combine net amounts
provincial LTT + municipal LTT − eligible rebates
Do not subtract a first-time buyer rebate unless every eligibility condition is satisfied.
Why Toronto Is Different
Toronto is the major Ontario exception because it adds a municipal land transfer tax on top of the provincial tax. This makes the purchase-price tiering more important for buyers close to budget limits.
Before waiving conditions or setting an offer price, model the transfer-tax amount alongside legal fees, title insurance, moving costs, and mortgage cash reserves.
How To Use The Calculator
Open the Canadian land transfer tax calculator, choose the Ontario/Toronto option, enter purchase price and first-time buyer status, then compare the result against your cash available at closing.
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Frequently Asked Questions
Why is Toronto land transfer tax higher?
Toronto buyers may owe a municipal transfer tax in addition to Ontario land transfer tax, creating a double layer at closing.
Do first-time buyers get Toronto relief?
Some buyers may qualify for rebates, but the rules depend on eligibility and current municipal/provincial policy.
Should I include land transfer tax in my down payment?
No. It is a separate closing cost and should be budgeted in addition to the down payment.