How much land transfer tax will you actually pay buying a Toronto condo?
Toronto condo buyers pay two land transfer taxes at closing: Ontario's provincial LTT and Toronto's own municipal LTT, stacked on top of each other. At $700K the combined bill is $19,950. At $950K it's $29,450. At $1.2M it's $40,950. First-time buyers can recover up to $8,475 through provincial and municipal rebates. These numbers land at closing, in cash, the day you take title.
Why Toronto buyers pay double what the rest of Ontario pays
Every Ontario home purchase triggers the provincial Land Transfer Tax. Toronto adds a second layer on top: the Toronto Municipal Land Transfer Tax (MLTT), which uses the same tiered rate structure and is calculated on the same purchase price. No other Ontario city does this. The result is that buying a $950,000 condo in Toronto costs roughly $15,000 more at closing than buying the same unit in Mississauga or Hamilton, before you've touched legal fees or title insurance.
Both taxes are due at closing, collected by your real estate lawyer. They are not optional, not deferrable, and not subject to negotiation. The only way to reduce them is through the first-time buyer rebate, which applies to both taxes if you qualify.
The exact stacked numbers at three Toronto price points
The provincial and Toronto MLTT both use a five-tier rate structure. Here are the combined totals at the price points most Monstera buyers are working with.
$700,000 purchase
- Ontario LTT: $9,975
- Toronto MLTT: $9,975
- Combined total: $19,950
- First-time buyer combined rebate: up to $8,475
- Net after rebate (first-time buyer): $11,475
$950,000 purchase
- Ontario LTT: $14,725
- Toronto MLTT: $14,725
- Combined total: $29,450
- First-time buyer combined rebate: up to $8,475
- Net after rebate (first-time buyer): $20,975
$1,200,000 purchase
- Ontario LTT: $20,475
- Toronto MLTT: $20,475
- Combined total: $40,950
- First-time buyer rebate (capped at $8,475 regardless of price): $8,475
- Net after rebate (first-time buyer): $32,475
The rebate is a flat cap, not a percentage. At $1.2M the rebate becomes a smaller fraction of the total tax bill. Every dollar above the rebate threshold comes entirely out of pocket.
How floor and orientation choices change your tax bill
Land transfer tax is calculated on purchase price, which means unit selection choices that affect price also affect your tax bill directly.
A higher floor at Pier 27 on Queens Quay East, for example, commands a meaningful premium over a lower floor with the same layout. If the premium between floor 12 and floor 22 is $100,000, that's an additional $2,000 to $2,500 in combined LTT on top of the price difference itself. At $120,000 in floor premium, you're looking at approximately $3,000 in extra tax.
The same logic applies when comparing buildings. A southeast-facing corner unit at Ten York with an unobstructed lake view will price $150,000 to $200,000 above a comparable unit at Neptune or AquaLina in Humber Bay Shores. The view premium is real, and you pay LTT on every dollar of it.
This doesn't mean avoid higher floors. It means the tax is part of the true cost comparison when you're deciding between units. If you're evaluating buildings in different waterfront neighbourhoods, the price difference between neighbourhoods affects your LTT as much as the unit itself.
First-time buyer rebate: who qualifies and what you actually get back
The Ontario rebate returns 100% of provincial LTT up to $4,000. The Toronto MLTT rebate returns 100% of municipal LTT up to $4,475. Both rebates are applied at closing by your lawyer, meaning you do not pay the tax and then wait for a refund. The net amount owing is reduced on closing day.
To qualify for both rebates you must meet every condition below:
- Canadian citizen or permanent resident
- At least 18 years old at closing
- Never owned a home anywhere in the world (not just Canada)
- Not currently have a spouse who has owned a home while they were your spouse
- Intend to occupy the property as your principal residence within nine months of closing
The "never owned anywhere in the world" rule catches more buyers than people expect. If you owned a property in another country and sold it before moving to Canada, that disqualifies you. If your name was on a title in any country for any reason, confirm eligibility with your lawyer before counting on the rebate.
At $700,000, a qualifying first-time buyer's LTT drops from $19,950 to $11,475. That's meaningful. At $1.2M, the same buyer saves $8,475 on a $40,950 bill. Still meaningful, but a smaller fraction of both the tax and the purchase price.
The full context of what you owe at closing, including legal fees, title insurance, and any CMHC premium, is covered in the complete closing costs guide for Toronto condo buyers.
What LTT means for your actual cash requirement at closing
Land transfer tax is not financed with your mortgage. It is a cash requirement. That changes the math for buyers working within a defined cash available for closing.
At $950,000, a repeat buyer needs $29,450 in cash just for LTT, before legal fees ($2,000 to $3,500), title insurance ($300 to $500), and any adjustments for prepaid condo fees or property tax. The cash requirement including LTT and legal fees is typically $32,000 to $35,000 at that price point, before the down payment itself.
For a first-time buyer at $950,000, the LTT net of rebates is $20,975. Still the single largest line item in closing costs. If you're comparing a $920,000 unit to a $950,000 unit and trying to decide whether the $30,000 gap is worth it, the real gap after tax is $29,450 minus $28,000, approximately $31,450 all-in difference. The tax doesn't change the decision but it changes the true cash difference.
This is also why understanding what you're actually buying matters before you spend the money. A unit that looks $30,000 cheaper but carries red flags in the status certificate or has a pending special assessment can cost far more than the LTT savings.
FAQ
How much is land transfer tax on a $950,000 condo in Toronto?
On a $950,000 purchase in Toronto you owe Ontario LTT of $14,725 plus Toronto Municipal LTT of $14,725, for a combined total of $29,450. A first-time buyer who qualifies for both rebates (max $4,000 Ontario plus $4,475 Toronto) reduces that to $20,975 out of pocket at closing.
Do Toronto condo buyers pay land transfer tax twice?
Yes. Toronto is the only city in Ontario with its own municipal land transfer tax, layered on top of the provincial Ontario LTT. Both taxes use the same tiered rate structure and are calculated on the same purchase price, so the combined bill is roughly double what buyers in other Ontario cities pay.
What is the Ontario first-time buyer land transfer tax rebate?
Ontario rebates 100% of provincial LTT up to a maximum of $4,000 for eligible first-time buyers. To qualify you must be a Canadian citizen or permanent resident, at least 18 years old, have never owned a home anywhere in the world, and intend to occupy the property as your principal residence.
What is the Toronto municipal land transfer tax first-time buyer rebate?
Toronto's rebate covers 100% of the municipal LTT up to a maximum of $4,475 for eligible first-time buyers. Eligibility rules mirror the provincial rebate. Combined, a qualifying first-time buyer in Toronto can receive up to $8,475 back at closing.
Does buying a higher floor at a Toronto condo building increase land transfer tax?
Yes, directly. Land transfer tax is calculated on purchase price, so a higher-floor unit that sells for $100,000 more than a lower-floor comparable generates roughly $2,000 to $2,500 in additional combined LTT on top of the price difference itself.
When is land transfer tax paid on a Toronto condo purchase?
Both the provincial and municipal land transfer tax are collected at closing by your real estate lawyer, not before. The amounts are due on the day title transfers. Your lawyer will include both taxes in the closing funds statement you review before closing day.
Emma Pace, North Group Real Estate — Toronto waterfront condo specialist.
