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Closing Costs

Ontario land transfer tax + Toronto MLTT (2026): a clear closing cost guide

Land transfer tax is one of the largest closing costs in Ontario. Here is how the provincial and Toronto municipal taxes work, plus a simple example you can adapt.

Feb 6, 2026—By ClickHomes Research

Land transfer tax can add a five-figure line item to your closing costs in Ontario. If you buy in Toronto, you pay both the provincial land transfer tax and the Toronto Municipal Land Transfer Tax (MLTT). Here is a clear, accurate guide you can use when budgeting in Milton and the GTA.

Ontario land transfer tax (LTT) rates

Ontario LTT is calculated on the purchase price using marginal brackets:

  • 0.5% on the first $55,000
  • 1.0% on $55,000.01 to $250,000
  • 1.5% on $250,000.01 to $400,000
  • 2.0% on $400,000.01 to $2,000,000
  • 2.5% on amounts over $2,000,000 (for one or two single-family residences)

First-time buyer refund (Ontario)

Eligible first-time buyers can receive a refund of land transfer tax, up to a maximum of $4,000. The refund can be claimed at registration or after closing if it was not claimed at registration.

Toronto MLTT (in addition to Ontario LTT)

If your property is in the City of Toronto, the MLTT applies on top of the provincial tax. Toronto has standard MLTT brackets that mirror Ontario, and new graduated rates for high-value residential properties with one or two single-family residences effective April 1, 2026. The City publishes the current rates and the new high-value tiers.

Simple example: $750,000 purchase in Milton

Milton is outside Toronto, so only Ontario LTT applies. Using the provincial brackets:

  • 0.5% on $55,000 = $275
  • 1.0% on $195,000 = $1,950
  • 1.5% on $150,000 = $2,250
  • 2.0% on $350,000 = $7,000

Estimated Ontario LTT: $11,475

If you are a qualifying first-time buyer, the refund could reduce this amount by up to $4,000.

Budgeting tips for GTA buyers

  • Confirm whether your property is inside Toronto city limits. The MLTT can double the tax.
  • Get a lawyer estimate early; LTT is due at registration.
  • Keep your closing cost buffer separate from your down payment.

Bottom line

The land transfer tax is predictable once you know the brackets. Use the official rate tables, confirm eligibility for refunds, and build a closing cost buffer early in your search.

Sources:

ClickHomes Research

Real estate market research and analysis team at ClickHomes AI, covering Toronto and the Greater Toronto Area with daily TREB/MLS data insights.