When buying a home in Toronto, one of the biggest surprise costs is the Land Transfer Tax (LTT) — and if you’re purchasing within the City of Toronto, you’ll pay double what most Ontario buyers pay.
Here’s what you need to know, from Mike Yat, your trusted local real estate expert.
📍 Why Does Toronto Have Two Land Transfer Taxes?
Toronto buyers pay:
- Provincial LTT (charged across Ontario)
- Municipal Toronto LTT (exclusive to homes purchased in Toronto proper)
Example: Buying a $1M home in Toronto = ~$32,950 in total land transfer tax. Where outside Toronto = ~$16,475.
💰 Land Transfer Tax Calculation Example
For a $800,000 home in Toronto:
| Tax Type | Amount |
|---|---|
| Provincial LTT | $12,475 |
| Toronto LTT | $12,475 |
| Total | $24,950 |
🎓 Do First-Time Buyers Get a Rebate?
Yes! First-time buyers can receive a rebate of up to $4,000 provincially and up to $4,475 municipally in Toronto.
Must be a Canadian citizen or permanent residentMust never have owned property anywhere in the worldMust live in the home as your principal residence
💡 Mike Yat’s Tips:
- Get pre-qualified with a mortgage broker who factors in LTT.
- Don’t assume your deposit = all upfront costs.
- Use a lawyer who clearly outlines all closing costs.
📞 Need Help Planning Your Budget?
Mike Yat walks his clients through complete, transparent cost breakdowns — so there are no surprises on closing day.
