Is there a higher Ontario land transfer tax rate on homes priced above two million dollars?

Yes, Ontario's land transfer tax rate schedule includes a higher marginal rate on the portion of a residential purchase price that exceeds a specified upper threshold. Homes priced above this threshold are taxed at a higher rate on the amount above it — this top tier reflects a graduated structure that applies incrementally.

The Ontario government has adjusted the rate structure and thresholds over time, including adding a top rate tier on higher-value residential transactions. Because these thresholds and the applicable rates can change through provincial budget measures, you should confirm the current brackets with your real estate lawyer or the Ministry of Finance before closing on a high-value property.

In Toronto, the Municipal Land Transfer Tax similarly has upper-bracket tiers. The combined LTT cost on a luxury home in Toronto can be significant — potentially well into five figures or higher — making the exact current rate structure an important input to your pre-offer financial planning. On high-value purchases, even small changes in how the brackets are structured can materially affect your closing costs.