Buying a condo in the City of Toronto means paying both Ontario’s land transfer tax and Toronto’s municipal land transfer tax, and below $2 million the two are identical. On a $650,000 condo the total is $18,950, or $10,475 for an eligible first-time buyer after both rebates. Outside Toronto, in places like Mississauga or Vaughan, you pay only the Ontario tax.
Key takeaways
- Ontario and Toronto use the same rates up to $2 million, so Toronto buyers pay double.
- Total land transfer tax on a $550,000 Toronto condo is $14,950.
- First-time buyers get up to $4,000 back from Ontario and up to $4,475 from Toronto.
- Toronto’s new luxury rates from April 1, 2026 only start above $3 million.
- Land transfer tax is paid in cash at closing and cannot normally be added to your mortgage.
How land transfer tax is calculated on a condo
Both taxes are marginal, like income tax: each rate applies only to the slice of the price within its band. The Ontario rates are:
- 0.5% on the first $55,000
- 1.0% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% from $400,000 to $2 million
- 2.5% above $2 million (for properties with one or two single-family residences)
Toronto’s municipal rates mirror these up to $2 million, then add 2.5% to $3 million and higher luxury tiers starting at 4.40% above $3 million, effective April 1, 2026. Very few condos reach those tiers, so for almost every condo buyer the Toronto tax equals the Ontario tax.
Land transfer tax on a Toronto condo, by price
| Price | Ontario LTT | Toronto MLTT | Total | Total for first-time buyer |
|---|---|---|---|---|
| $450,000 | $5,475 | $5,475 | $10,950 | $2,475 |
| $550,000 | $7,475 | $7,475 | $14,950 | $6,475 |
| $650,000 | $9,475 | $9,475 | $18,950 | $10,475 |
| $800,000 | $12,475 | $12,475 | $24,950 | $16,475 |
| $1,100,000 | $18,475 | $18,475 | $36,950 | $28,475 |
A quick shortcut for prices between $400,000 and $2 million: each tax is $4,475 plus 2% of the amount above $400,000. On a $550,000 condo that is $4,475 plus $3,000, or $7,475 per tax.
First-time buyer land transfer tax rebates
Ontario refunds up to $4,000, which means no provincial tax on the first $368,000 of the price. Toronto rebates up to $4,475, which covers the municipal tax on the first $400,000. On a $450,000 Toronto condo, a first-time buyer pays $2,475 in total instead of $10,950.
The eligibility rules, set out on the Ontario refund page and matched by Toronto, are strict:
- You must be a Canadian citizen or permanent resident.
- You must never have owned a home, or an interest in a home, anywhere in the world.
- If you have a spouse, your spouse cannot have owned a home anywhere while they were your spouse.
- You must move in within nine months of closing.
- If you do not claim it at registration, you can apply for the refund within 18 months.
If one buyer qualifies and the other does not, the rebate is usually prorated to the eligible buyer’s share. In December 2025, Toronto City Council voted down a proposal to expand the rebate to a full rebate on homes from $400,000 to $800,000 and asked staff to review the program, so the $4,475 maximum is unchanged for now.
Example: a couple buying their first Toronto condo
Two first-time buyers purchase a $520,000 one-bedroom plus den in North York, which is inside the City of Toronto. Each tax is $4,475 plus 2% of $120,000, or $6,875, so the total before rebates is $13,750. Ontario refunds $4,000, leaving $2,875, and Toronto rebates $4,475, leaving $2,400. Their combined land transfer tax bill is $5,275. If only one of them qualified as a first-time buyer, the rebates would be reduced, so check both histories before you count on the full amount.
Buying outside Toronto: what changes
Toronto is the only Ontario municipality that charges its own land transfer tax. A condo of the same price in Mississauga, Vaughan or Markham carries only the Ontario tax. On a $550,000 unit that is $7,475 instead of $14,950, a saving of $7,475 at closing. For a first-time buyer, the Ontario-only bill on $550,000 is $3,475.
That gap is one reason many first-time buyers look just across the city line. Compare current listings in Mississauga and Vaughan with Toronto condos before you decide where to search.
Tip: If your condo comes with a separately titled parking unit or locker, the land transfer tax applies to the total price of everything you buy, not just the suite. Make sure your lawyer has the full purchase price when estimating closing costs, and do not treat a $50,000 parking space as tax-free.
Land transfer tax on a new or pre-construction condo
On a new condo, land transfer tax is paid at final closing, when the condominium is registered and title transfers to you, not when you sign or at interim occupancy. It is calculated on the purchase price, not the lender’s appraisal. If your unit appraises below the contract price, you still pay tax on the contract price; our guide to the pre-construction appraisal gap shows how that affects the cash you need.
New condo prices are usually quoted including HST, with rebates assigned to the builder, and that can affect the figure your lawyer uses for tax. The new Ontario HST rebate on new condos is separate from land transfer tax and does not reduce it directly.
Taxes for buyers who are not Canadian residents
Buyers who are not citizens or permanent residents face more. Ontario’s Non-Resident Speculation Tax is 25% province-wide, and Toronto adds a 10% Municipal Non-Resident Speculation Tax, both on top of the regular land transfer taxes. The federal ban on most foreign purchases of residential property is set to expire on January 1, 2027.
Frequently asked questions
How much is land transfer tax on a $600,000 condo in Toronto?
The Ontario tax is $8,475 and the Toronto municipal tax is also $8,475, for a total of $16,950. An eligible first-time buyer gets up to $4,000 back from Ontario and up to $4,475 from Toronto, which brings the total down to $8,475. Outside Toronto, the same condo carries only the $8,475 Ontario tax.
Can I add land transfer tax to my mortgage?
Generally no. Land transfer tax is a closing cost paid in cash through your lawyer on closing day. Lenders and mortgage insurers expect you to have closing costs available, often estimated at about 1.5% of the price or more in Toronto. Plan to have the tax, legal fees and adjustments in your account before closing.
Do I pay land transfer tax on a condo assignment?
Land transfer tax is paid when title is registered. In an assignment, the original buyer never takes title, so the assignee pays the tax at final closing. How the tax is calculated on an assignment depends on the total consideration paid, so ask your lawyer to confirm the figure in your situation.
Who qualifies as a first-time buyer for land transfer tax?
You must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months. Your spouse must not have owned a home while married to you. This definition is stricter than the federal one used for the 30-year amortization and FHSA.
Work out your closing costs
Use our land transfer tax and closing cost calculators to test your own price, or read our condo buyers’ guide for the full list of costs to expect.
This article is general information as of October 2026, not legal, tax, mortgage or financial advice. Rules and numbers change, so confirm the details for your situation with a licensed professional.