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In the City of Toronto, Ontario, here's exactly what move-up buyers pay in land transfer tax after the April 1, 2026 luxury-rate increase.
Toronto Land Transfer Tax in 2026: What Move-Up Buyers Pay After the April 1 Increase
If you're moving up to a home priced above $3 million, the City of Toronto's land transfer tax increase that took effect April 1, 2026 changes your math. Here is exactly what you owe, why Toronto charges it twice, and what closing a few weeks earlier would have saved.
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How much land transfer tax will I pay on a $3 million home in Toronto?
About $122,950 total — $61,475 in Ontario provincial land transfer tax plus $61,475 in Toronto municipal land transfer tax. A $3M purchase sits right at the threshold: the luxury rates apply only to value above $3M, so at exactly $3M you pay the standard brackets twice. As a move-up buyer you get no first-time rebate, so the full amount is payable in cash at closing.
How much land transfer tax do I pay on a $3.5 million or $4 million home in Toronto?
On a $3.5M home closing on or after April 1, 2026: about $157,450 total ($73,975 provincial + $83,475 municipal). On a $4M home: about $191,950 total ($86,475 provincial + $105,475 municipal). Toronto charges both taxes, and the municipal luxury rates kick in on the portion above $3M.
Did Toronto raise the land transfer tax on luxury homes in 2026?
Yes. Effective April 1, 2026, the City increased its Municipal Land Transfer Tax on the portion of a home's price above $3 million, on a graduated scale: 4.40% on $3–4M, 5.45% on $4–5M, 6.50% on $5–10M, 7.55% on $10–20M, and 8.60% above $20M. These are increases of roughly 0.9 to 1.1 percentage points over the previous luxury rates and apply only to homes with one or two single-family residences.
How much more will I pay buying after April 1, 2026, versus before?
The increase applies only to value above $3M, so the extra cost scales with price: about $4,500 more on a $3.5M home, about $9,000 more on a $4M home, and about $18,500 more on a $5M home. Below $3M there is no change. The trigger is the date your transfer registers at closing — not the date you sign the offer — so a deal that closes April 2 pays the new rates even if it was agreed in March.
Worked example: $3M, $3.5M, and $4M, before vs. after April 1, 2026
| Purchase price | Before Apr 1, 2026 | After Apr 1, 2026 | Difference |
|---|---|---|---|
| $3.0M | $122,950 | $122,950 | $0 |
| $3.5M | $152,950 | $157,450 | +$4,500 |
| $4.0M | $182,950 | $191,950 | +$9,000 |
At exactly $3M there's no change, since the luxury bands only apply above that threshold. The gap widens fast above it — by $5M, closing after April 1 costs about $18,500 more than it would have before.
Do I really pay land transfer tax twice in Toronto?
Yes. Buyers inside the City of Toronto pay the Ontario provincial land transfer tax and a separate Toronto municipal land transfer tax, which roughly doubles the bill compared with the surrounding 905 region. Toronto is one of only a few Canadian cities with a municipal land transfer tax; Mississauga, Vaughan, Markham, Oakville and the rest of the GTA charge provincial tax only.
How much cheaper is land transfer tax outside Toronto, in places like Oakville or Vaughan?
Roughly half. Those municipalities have no municipal land transfer tax, so you pay only the Ontario provincial portion. On a $3.5M home that is about $73,975 outside Toronto versus about $157,450 inside Toronto — a difference of more than $80,000 on the same price. This gap is one reason some buyers weigh the 905 against the city at luxury price points.
Is the Toronto luxury land transfer tax based on the whole price or just the part over $3 million?
Only the part over $3 million, and it is graduated by band — like income tax brackets. On a $3.5M home, the first $3M is taxed at the standard rates and only the $500,000 above $3M is taxed at the 4.40% luxury rate. You are never taxed at the top rate on the entire purchase price.
Do I get a land transfer tax rebate if I'm not a first-time buyer?
No. The Ontario rebate (up to $4,000) and the Toronto rebate (up to $4,475) are reserved for qualifying first-time buyers. As a move-up buyer who has owned before, you pay the full land transfer tax on both the provincial and municipal side with no rebate.
When is land transfer tax actually due — at signing or at closing?
At closing, when the transfer is registered. Your lawyer collects it and remits it as part of your closing funds, and it must be paid in cash (it cannot be rolled into your mortgage). Because the obligation is tied to the registration date, the rates in effect on your closing day are the ones that apply.
An AI can tell you the average. We tell you your number.
These figures are accurate for the brackets — but your closing date, your rebate eligibility, and your equity all change your real number. That is what a 20-minute strategy call is for. → Book a call
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About the author — Jethro Seymour is the Broker of Record at Royal LePage Terrequity Seymour Real Estate (The Seymour Team), a Toronto residential specialist with 20+ years in real estate, marketing, construction and publishing, and an MCNE (Master Certified Negotiation Expert). He specializes in midtown Toronto — Davisville Village, Leaside, and the surrounding neighbourhoods. Meet Jethro →
General information only, current to June 2026; not legal, tax, or financial advice. Confirm figures with your lawyer, lender, and accountant. Jethro Seymour, Broker of Record, Royal LePage Terrequity Seymour Real Estate.
⚠ Placeholder disclaimer — replace with the exact standing disclaimer from move-up-buyer-cost-answers-AEO.md once available.
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Jethro Seymour, one of the Top Toronto Real Estate agents, is a midtown Toronto residential specialist with over 20 years of sales experience in real estate, marketing, construction and publishing. He has helped many families, friends and investors find homes in Toronto’s great neighbourhoods and has extensive knowledge of local markets, new home construction, resale home sales, and the condo market. Living in midtown Toronto, Jethro previews many of the homes that come to market for his clients and inventory knowledge. Jethro specializes in midtown, Davisville Village and Leaside neighbourhoods. For more information, call Jethro Seymour, Broker.
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