If you're buying in Riverdale and Leslieville, the Beaches, or the Danforth and East York, land transfer tax is likely your largest closing cost — and in Toronto you pay it twice. Rather than a generic explanation, here are real worked examples.
$44,950 combined provincial + Toronto land transfer tax on a $1.3M home, before rebates | $4,475 tax on the first $400,000, plus 2% of everything above it |
Up to $8,475 maximum first-time buyer rebates combined ($4,000 provincial + $4,475 Toronto) | Oct 26 Toronto municipal election; budget on today's rules |
How the Tax Is Calculated
Ontario's land transfer tax is a marginal tax: each slice of the price is taxed at its own rate. For the portion of a price up to $2 million, Toronto's Municipal Land Transfer Tax (MLTT) uses the same brackets as the province:
| Portion of the price | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
That works out to $4,475 of tax on the first $400,000, plus 2% of whatever you pay above $400,000. Then you pay the same calculation again to the City.
Worked Examples
The prices below are illustrative price points, not East End averages.
| Purchase price | Provincial tax | Toronto MLTT | Combined |
|---|---|---|---|
| $1,000,000 | $16,475 | $16,475 | $32,950 |
| $1,300,000 | $22,475 | $22,475 | $44,950 |
| $1,600,000 | $28,475 | $28,475 | $56,950 |
As a cross-check, TRREB puts the combined tax at roughly $33,000 on an average-priced Toronto home, in line with the $1,000,000 row.
With the First-Time Buyer Rebates
Eligible first-time buyers can claim up to $4,000 off the provincial tax and up to $4,475 off the Toronto MLTT — up to $8,475 combined. The City's rebate is in addition to the provincial one.
| Purchase price | Combined tax | After maximum rebates |
|---|---|---|
| $1,000,000 | $32,950 | $24,475 |
| $1,300,000 | $44,950 | $36,475 |
| $1,600,000 | $56,950 | $48,475 |
At these price points the rebates cover only a fraction of the tax. TRREB notes that the City's rebate hasn't been updated since 2016.
Above $3 Million
Since April 1, 2026, Toronto charges higher MLTT rates on the portion of the price above $3 million, starting at 4.40% on the portion up to $4 million. If you're buying at that level, confirm your figure directly with the City or your lawyer, since those tiers are recent.
Two Things Worth Knowing Before You Budget
- It's cash on closing. Land transfer tax can't be added to your mortgage. Plan for it alongside your down payment, legal fees, and moving costs.
- It's on the ballot, sort of. Toronto's municipal election is October 26, and land transfer tax is part of the campaign conversation. Nothing changes your closing costs unless the new council acts, so budget on today's rules. We cover the details in our market-side guide.
Run Your Own Numbers
For an exact figure on a specific price, use RE/MAX Plus City's Land Transfer Tax calculator. If you're early in the process and want to understand your full buying costs, our Buy page is a good starting point.
The Bottom Line
On a $1.3 million East End home, the combined land transfer tax is roughly $45,000 before any first-time buyer rebate — a number worth knowing before you fall in love with a listing, not after. Planning for it early is far easier than finding the cash the week of closing.
Thinking about buying in the East End and want your real closing costs mapped out? Contact Jeff Carr for a straight conversation.
This article is for general information and is not legal or tax advice. Eligibility for rebates depends on your circumstances; confirm with your real estate lawyer.
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