Toronto municipal land transfer tax

The City of Toronto has charged MLTT on purchases of all properties in the city since February 1, 2008, in addition to the provincial tax. It is set by Chapter 760 of the Toronto Municipal Code under the City of Toronto Act, 2006.

For land containing one or two single-family residences, the marginal rates from April 1, 2026 are 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000 and 2.5% to $3,000,000. Above that, the rates are 4.4% to $4,000,000, 5.45% to $5,000,000, 6.5% to $10,000,000, 7.55% to $20,000,000 and 8.6% over $20,000,000. All other property pays 0.5%, 1%, 1.5% and 2% above $400,000.

Worked example: on a $1,000,000 house, the MLTT is $16,475, the same as Ontario's tax, so the buyer pays $32,950 in total. On a $3,500,000 house, the MLTT is $83,475. That is the $73,975 Ontario charges, plus 1.9 points more on the $500,000 above $3,000,000. Before April 1, 2026 the MLTT on the same house was $78,975.

The MLTT is charged on purchases. By-law 132-2026 requires every person who tenders a conveyance for registration to pay the City's Chief Financial Officer and Treasurer "when the conveyance is tendered for registration or before it is tendered for registration". The City says "payment for the MLTT is due upon registration of your property". The City works with Teranet Inc. and the Province on collection, and refers buyers to their real estate lawyer for further information.

The City also charges an MLTT administration fee of $102.56 plus HST per transaction. The fee does not apply to full exemptions or to transactions with a value under $14,399.00.

MLTT is calculated on the "value of the consideration", the same concept used for Ontario's land transfer tax. In its MNRST guidance, the City describes the value of the consideration as "normally the amount paid for the land in addition to the remainder of any mortgage or debt assumed as part of the purchase agreement". It uses fair market value in some cases, for example a lease with a term that can exceed 50 years, a transfer of land from a corporation to a shareholder, or a transfer of land to a corporation in exchange for shares.

Which rate schedule applies depends on the land: the higher rates above $3,000,000 apply only to land that contains at least one and not more than two single-family residences.

The City offers a first-time home buyer rebate of up to $4,475 of MLTT. Because the City's rates match the province's up to $400,000, the rebate equals the full MLTT on a home up to $400,000. It applies to newly constructed and resale residential properties, but not to "commercial, industrial or multi-residential properties". The City's conditions are that the purchaser:

- is at least 18 years of age - occupies the home as their principal residence no later than nine months after the conveyance - has never owned a home, or any ownership interest in a home, anywhere in the world - has a spouse who has not owned one while they were the purchaser's spouse - is a Canadian citizen or permanent resident, or becomes one within 18 months of the transfer

The rebate can be claimed at the time of registration. If it was not claimed then and the MLTT was paid in full, the City's Revenue Services must receive a rebate application with supporting documents within 18 months, and a refund fee of $221.22 applies. With Ontario's $4,000 refund, an eligible first-time buyer of a $1,000,000 home pays $24,475 in total instead of $32,950.

Toronto has no MLTT exemption specific to new homes. The first-time buyer rebate applies to "newly constructed" and "resale residential properties".

Since January 1, 2025 the Municipal Non-Resident Speculation Tax (MNRST) charges foreign buyers 10% of the purchase price of certain residential properties in Toronto, in addition to the MLTT. It applies to the full purchase price of land containing at least one and not more than six single-family residences, such as detached and semi-detached houses, townhouses and condominium units. The City has no grandfathering for agreements signed before January 1, 2025.

Foreign buyers in Toronto also pay Ontario's 25% Non-Resident Speculation Tax. On a $1,000,000 house a foreign buyer would owe $16,475 provincial tax, $16,475 MLTT, $250,000 NRST and $100,000 MNRST.

The City's exemptions mirror the province's: Ontario Immigrant Nominee Program nominees, protected persons, and foreign nationals buying with a spouse who is a Canadian citizen, permanent resident, nominee or protected person. A rebate may be available if the buyer becomes a permanent resident within four years. Rebate applications must be received within 90 days of becoming a permanent resident, which is shorter than the province's 180 days.

Chapter 760 sets out the transactions that are fully exempt from MLTT, and the City's administration fee does not apply to them. The City audits exemptions claimed at registration and requires buyers to keep records for seven years. If records are not provided, the tax, interest and penalty become payable immediately. The City also offers a grandfathering exemption for agreements of purchase and sale signed on or before December 31, 2007 that closed on or after February 1, 2008.

April 1, 2026: new MLTT rates above $3,000,000 for land with one or two single-family residences (4.4%, 5.45%, 6.5%, 7.55% and 8.6%), replacing the rates of 3.5%, 4.5%, 5.5%, 6.5% and 7.5% that applied from January 1, 2024 to March 31, 2026. City Council passed the change on December 17, 2025, and By-law 132-2026 was enacted on February 10, 2026. January 1, 2025: the 10% Municipal Non-Resident Speculation Tax took effect. January 1, 2024: the graduated rates above $3,000,000 were first introduced.