Toronto Land Transfer Tax (2025 UPDATE)

This calculator was made to give you an idea of what your Toronto land transfer tax could be. Please do not rely on it completely. Keep in mind that laws can change, and so can tax percentages. Check out our page to follow the latest Toronto real estate market statistics and news.

The Toronto land transfer tax is calculated using a marginal tax rate system based on the purchase price of your home. The higher the purchase price, the more land transfer tax you will have to pay. The Toronto land transfer tax starts at 0.5% on the first $55,000 of the purchase price and gradually increases to 2.5% for every dollar of the purchase price above $2,000,000.

Therefore, if you purchase a home for $1,000,000, you’ll need to pay $16,475 in Toronto land transfer tax. However, if you’re a first-time homebuyer, you qualify for a municipal rebate of $4,475, bringing your tax bill down to $12,000.

The Toronto land transfer tax was introduced in February 2008 after the Toronto City Council approved it in 2006 as part of the City of Toronto Act. Before that, homebuyers in Toronto only had to pay the provincial land transfer tax.

So why add another tax for Toronto buyers? The goal was to generate more revenue for the city’s budget, which could then be invested in local improvements. This gave the city additional funds to support more municipal programs.

Along with the rate changes, the municipal rebate for first-time homebuyers was also adjusted. In 2017, the maximum rebate was raised from $3,725 to $4,475 to help offset the difference in land transfer taxes due to the rate change.

Since then, housing prices have continued to rise. Today, the average home price in Toronto is about $1,405,478. At that value, the Toronto land transfer tax comes to $24,584 under the current rates. That’s more than five times higher than when the tax was first introduced just 13 years ago!

If you buy a condominium in Toronto, you’ll need to pay both the Toronto land transfer tax and the Ontario land transfer tax, even though the land your building is placed on is shared among all condo owners.

The good news is that, since condo prices in Toronto are generally lower than the average home price, your land transfer tax bills will also be lower. That means you’ll pay less in both the Toronto land transfer tax and the provincial land transfer tax when buying a condo.

For example, if you purchase a condo at the average price of $674,490, your Toronto land transfer tax will be $9,964. The total land transfer tax, including the Ontario provincial tax, will be $19,929. This is much cheaper than what you’d pay for a house.

For pre-construction condos, land transfer taxes are due on the closing date, just like with a regular home purchase. The difference is that the closing date only happens after the city completes its inspections and the building is officially registered. Your lawyer will be notified of this date and will let you know once it’s confirmed.

According to the 2025 City of Toronto Budget Summary, at the end of 2025, the city of Toronto expects to receive $986 million in municipal land transfer tax. This represents approximately 5.2% of the city’s Tax and Rate operating budget and is the eighth largest source of revenue for Toronto in 2025.

Thus, the land transfer tax is a significant part of the city’s budget, allowing Toronto to maintain a balanced budget while having one of the lowest property tax rates in Canada.

As Canada’s largest city, Toronto is the place where homebuyers must pay both municipal and provincial land transfer taxes. In addition, this city has the highest total land transfer tax rate in the country, meaning buyers here face much higher costs compared to other Canadian cities.

In Edmonton and Calgary, there’s essentially no land transfer tax — homebuyers only need to cover small registration fees. In Vancouver, the provincial land transfer tax rate increases gradually up to 5%. Even so, homebuyers still pay less than in Toronto because there’s no municipal tax, plus the provincial rebate for first-time buyers is larger.

In Ottawa, homebuyers pay a provincial land transfer tax, similar to Toronto, but there’s no municipal tax added on. Quebec is a bit unique: the rate varies depending on the region, but even then, it’s still much lower than what homebuyers in Toronto have to pay.

De Krupe Law is a leading law firm in Toronto, as well as in cities such as Newmarket, Vaughan, and Barrie. We provide a full range of legal services, including helping clients with the buying and selling of real estate. Our lawyers take the time to explain every step of the process in plain language, keeping you informed and confident throughout.

If you have questions about the Toronto land transfer tax, don’t hesitate to call or email us. We’re available from 9:00 a.m. to 6:30 p.m., Monday through Saturday.