The Toronto municipal land transfer tax (MLTT) is charged on every property purchase within the City of Toronto, on top of Ontario's provincial land transfer tax. It uses the same rate structure as the provincial tax, effectively doubling land transfer tax costs for Toronto buyers. On a $900,000 Toronto home, buyers pay $14,475 in provincial land transfer tax plus $14,475 in municipal land transfer tax — $28,950 combined. Buyers in Mississauga, Markham, Vaughan, and other GTA municipalities outside Toronto pay only the provincial amount.
Understanding the MLTT — and knowing exactly where it applies — matters for your budget and can influence where you choose to search for a home. This guide covers who pays it, how much it costs, where the geographic boundary falls, and what rebates first-time buyers qualify for. For the complete picture of closing costs in Ontario, see what closing costs home buyers pay.
Toronto MLTT Rates
The Toronto MLTT uses the same sliding-scale rate structure as Ontario's provincial land transfer tax:
| Portion of purchase price | Tax rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Because the MLTT mirrors the provincial rates exactly, Toronto buyers pay approximately double the land transfer tax compared to buyers in neighbouring 905 municipalities for the same purchase price.
What the MLTT Costs at Common Toronto Price Points
| Purchase price | Ontario LTT | Toronto MLTT | Total LTT for Toronto buyer | 905-region buyer pays |
|---|---|---|---|---|
| $700,000 | $10,475 | $10,475 | $20,950 | $10,475 |
| $900,000 | $14,475 | $14,475 | $28,950 | $14,475 |
| $1,100,000 | $18,475 | $18,475 | $36,950 | $18,475 |
| $1,400,000 | $24,475 | $24,475 | $48,950 | $24,475 |
The MLTT savings from buying just outside Toronto's city limits — in Mississauga vs. Etobicoke, for example — can amount to $10,000–$25,000 depending on the purchase price. For buyers with a tight closing cost budget, this difference is worth factoring into your search area decision.
Where the Toronto MLTT Applies
The Toronto MLTT applies within the current City of Toronto's municipal limits. Since the 1998 amalgamation, the City of Toronto includes six former municipalities:
- The old City of Toronto (downtown, midtown, east end)
- North York
- Scarborough
- Etobicoke
- York
- East York
All properties within these boundaries are subject to the MLTT. A common misconception is that Etobicoke or Scarborough buyers avoid the tax because they feel more suburban — they do not. The boundary is the City of Toronto's municipal limit, not the old pre-amalgamation city boundary.
Properties in Mississauga (even bordering Etobicoke), Brampton, Markham, Vaughan, Richmond Hill, Oakville, Pickering, and all other GTA municipalities outside Toronto's city limits pay only the provincial land transfer tax.
First-Time Buyer Toronto MLTT Rebate
First-time home buyers purchasing within the City of Toronto receive a rebate of up to $4,475 on the municipal land transfer tax. This rebate is in addition to the provincial land transfer tax rebate of up to $4,000. Combined, first-time Toronto buyers can save up to $8,475.
On a $700,000 Toronto purchase, the combined LTT without rebates is $20,950. With both first-time buyer rebates ($4,000 provincial + $4,475 Toronto), the total drops to approximately $12,475 — a significant reduction. See the full list of programs available in our guide to first-time home buyer benefits in Ontario.
To qualify for the Toronto MLTT rebate:
- You must be a Canadian citizen or permanent resident, at least 18 years old
- You must never have owned a home anywhere in the world
- Your spouse cannot have owned a home while in the relationship with you
- The property must become your principal residence
Your real estate lawyer claims the rebate at closing. No separate application is required.
When Is the Toronto MLTT Paid?
The MLTT is paid on closing day, at the same time as the provincial land transfer tax. Your lawyer remits both taxes to the appropriate government authorities on your behalf. Both appear itemized on the statement of adjustments you receive before closing.
What buyers often miss is that the MLTT cannot be financed or deferred. It must come from your own funds, separate from your down payment. When calculating what you can afford, always include both land transfer taxes in your closing cost budget if you're searching in Toronto.
Does the Toronto MLTT Apply to Condos and New Builds?
Yes. The MLTT applies to all property types within the City of Toronto, including resale condos, resale houses, new construction houses, and pre-construction condos. For pre-construction condos, the MLTT is calculated on the full closing price — which includes the purchase price plus any upgrade selections and builder adjustments. This can result in a higher-than-expected MLTT bill years after signing the original pre-construction agreement, since prices may have appreciated and upgrades add to the taxable amount.
If you're searching for a condo or house in Toronto, browse active listings on Condohill and include the MLTT in your total purchase budget alongside your down payment.
FAQ
Does Etobicoke pay the Toronto municipal land transfer tax?
Yes. Etobicoke became part of the City of Toronto in the 1998 amalgamation, so all Etobicoke properties are subject to the Toronto MLTT in addition to Ontario's provincial land transfer tax. The same applies to North York, Scarborough, York, and East York — all of which are now part of the City of Toronto.
Does Mississauga pay the Toronto municipal land transfer tax?
No. Mississauga is a separate municipality in Peel Region and is not part of the City of Toronto. Buyers in Mississauga pay only Ontario's provincial land transfer tax. The same applies to Brampton, Vaughan, Markham, Oakville, and all other 905-region municipalities.
How much is the Toronto MLTT rebate for first-time buyers?
First-time buyers in Toronto receive a rebate of up to $4,475 on the municipal land transfer tax. This is in addition to Ontario's provincial rebate of up to $4,000. Combined, eligible first-time Toronto buyers can reduce their land transfer tax bill by up to $8,475. Your lawyer applies the rebate at closing automatically.
Is the Toronto MLTT tax-deductible?
No, not for owner-occupied principal residences. The MLTT is a one-time closing cost with no deductibility for personal homebuyers. For rental or investment properties, land transfer taxes (both provincial and municipal) can be added to the property's adjusted cost base to reduce capital gains on eventual sale.
Can the Toronto MLTT be added to my mortgage?
No. The MLTT, like the provincial land transfer tax, must be paid from your own funds on closing day. Neither tax can be added to your mortgage balance. Budget for both taxes as separate closing costs when calculating your total cash requirement for closing.
Who authorized the Toronto municipal land transfer tax?
Toronto City Council authorized the MLTT under the City of Toronto Act, 2006, which grants Toronto unique taxing powers not available to other Ontario municipalities. Toronto is the only municipality in Ontario that charges a municipal land transfer tax — every other GTA municipality, including Mississauga and Markham, has the legislative authority to implement one but has chosen not to.