How does Toronto's municipal land transfer tax differ from Ontario's provincial tax?

If you buy property within the City of Toronto's boundaries, you owe two separate land transfer taxes: the provincial Ontario LTT and the City of Toronto's own Municipal Land Transfer Tax (MLTT). Both are calculated on the purchase price, both use graduated bracket structures, and both are due at closing.

The Toronto MLTT rate brackets are structured similarly to the provincial tax but are set by municipal bylaw rather than provincial statute. As a result, Toronto buyers effectively pay roughly double the land transfer tax compared to buyers purchasing in other Ontario municipalities where only the provincial LTT applies.

The combined cost can be significant on higher-priced homes, making it an important line item to budget for before making an offer. First-time buyers may qualify for rebates on both the provincial and Toronto MLTT — the rebate amounts differ, so ask your lawyer about eligibility before closing.