On a $750,000 townhouse, Ontario land transfer tax is $11,475. If the townhouse is in the City of Toronto, you pay the same amount again as municipal land transfer tax, for a total of $22,950. First-time buyers get up to $4,000 back from Ontario and up to $4,475 back from Toronto, which brings the bill to $7,475 outside Toronto and $14,475 inside it. Buying in Mississauga, Vaughan or Markham instead of Toronto removes the municipal tax entirely.
Key takeaways
- Ontario LTT applies everywhere in the province; only the City of Toronto adds a municipal LTT.
- North York, Scarborough and Etobicoke are part of the City of Toronto, so the municipal tax applies there.
- The tax is the same for freehold, POTL and condo townhouses at the same price.
- First-time buyers can save up to $8,475 in Toronto and $4,000 elsewhere in Ontario.
- Land transfer tax is due in cash on closing and cannot be added to your mortgage.
How Ontario land transfer tax is calculated
Ontario LTT is charged in brackets, like income tax. Under the province’s land transfer tax rates, the rates for a home are:
- 0.5% on the first $55,000
- 1.0% on the portion from $55,000 to $250,000
- 1.5% on the portion from $250,000 to $400,000
- 2.0% on the portion above $400,000
- 2.5% on the portion above $2,000,000, for land with one or two single-family homes
Worked example: a $750,000 townhouse
| Bracket | Calculation | Tax |
|---|---|---|
| First $55,000 | $55,000 × 0.5% | $275 |
| $55,000 to $250,000 | $195,000 × 1.0% | $1,950 |
| $250,000 to $400,000 | $150,000 × 1.5% | $2,250 |
| $400,000 to $750,000 | $350,000 × 2.0% | $7,000 |
| Total Ontario LTT | $11,475 |
A shortcut for most townhouse prices: between $400,000 and $2 million, Ontario LTT equals 2% of the price minus $3,525. On $750,000, that is $15,000 minus $3,525, or $11,475.
Toronto’s double land transfer tax on townhouses
The City of Toronto charges its own municipal land transfer tax on top of Ontario’s. For homes up to $2 million, its MLTT rates match the provincial brackets, so the municipal tax equals the provincial tax at townhouse prices.
Toronto raised its luxury tiers on April 1, 2026, with rates from 4.40% on the portion between $3 million and $4 million up to 8.60% above $20 million. Those changes do not affect the vast majority of townhouse buyers, since even Toronto’s priciest townhouse districts have benchmarks well under $2 million.
Land transfer tax on a townhouse: Toronto vs the 905
| Price | 905 (Ontario LTT only) | Toronto (Ontario + MLTT) | 905 first-time buyer | Toronto first-time buyer |
|---|---|---|---|---|
| $550,000 | $7,475 | $14,950 | $3,475 | $6,475 |
| $650,000 | $9,475 | $18,950 | $5,475 | $10,475 |
| $750,000 | $11,475 | $22,950 | $7,475 | $14,475 |
| $900,000 | $14,475 | $28,950 | $10,475 | $20,475 |
| $1,200,000 | $20,475 | $40,950 | $16,475 | $32,475 |
For a repeat buyer, the Toronto premium is simply double. A $900,000 freehold townhouse in Leslieville costs $14,475 more in land transfer tax than a $900,000 townhouse in Markham. That money comes out of your savings on closing day.
First-time buyer land transfer tax refunds
Both Ontario and Toronto offer first-time buyer relief, with the same basic rules.
- Ontario: up to $4,000, which covers the full tax on the first $368,000 of the price.
- Toronto: up to $4,475, which covers the municipal tax on the first $400,000.
- Eligibility: you must be a Canadian citizen or permanent resident, you and your spouse must never have owned a home anywhere in the world, and you must move in within nine months of buying.
- Timing: most buyers claim it through their lawyer at closing. If not, you can apply within 18 months.
The Ontario first-time buyer refund page has the full conditions. In December 2025, Toronto Council voted down a motion to make the city rebate a full rebate on homes from $400,000 to $800,000 and asked staff to review the program, so the $4,475 cap still applies.
Tip: If you are buying with a partner and only one of you has owned a home before, ask your lawyer before you sign about how the refund is affected. The rules turn on spousal ownership, and the answer may change your budget by up to $8,475 in Toronto.
Does land transfer tax differ for condo, POTL or new townhouses?
No. The tax is based on the value of the consideration, not the type of ownership, so a $700,000 condo townhouse, POTL and freehold townhouse pay the same. Two situations deserve a closer look with your lawyer.
New townhouses
On a new home, land transfer tax is calculated on the purchase price as defined in the agreement. With HST rebates now large for many buyers, ask your lawyer to show you exactly which price figure the tax is calculated on. Our post on the Ontario HST rebate for new townhouses covers that program.
Non-resident buyers
Buyers who are not Canadian citizens or permanent residents may also face Ontario’s 25% Non-Resident Speculation Tax province-wide, and Toronto’s 10% municipal non-resident speculation tax, on top of regular LTT. The federal ban on most foreign purchases of residential property also runs to January 1, 2027.
How much does Toronto’s tax change the math?
For a repeat buyer comparing a $750,000 townhouse in Toronto with one in Mississauga, the difference is $11,475 in cash. If your savings are fixed, that is the difference between putting 10% down ($75,000) and about 8.5% down ($63,525) on the Toronto townhouse, with a larger insurance premium to match.
For a first-time buyer, the gap is smaller but still real: on a $750,000 townhouse, $14,475 in Toronto versus $7,475 in Mississauga, a $7,000 difference after both refunds.
That is not an argument against Toronto. Location, commute and long-term value matter more than a one-time tax. But it explains part of why many buyers look at Mississauga and Vaughan townhouses, and why first-time buyers moving up from a condo should budget the full amount. Our condo-to-townhouse cost breakdown works through that case.
Frequently asked questions
How much is land transfer tax on a $700,000 townhouse in Ontario?
Ontario land transfer tax on a $700,000 home is $10,475. In the City of Toronto, the municipal tax adds another $10,475, for $20,950 in total. A first-time buyer pays $6,475 outside Toronto after the $4,000 refund, and $12,475 in Toronto after both refunds. The tax is the same for freehold, POTL and condo townhouses.
Do you pay Toronto land transfer tax in North York or Scarborough?
Yes. North York, Scarborough, Etobicoke, East York and York are all part of the City of Toronto, so the municipal land transfer tax applies there. It does not apply in Mississauga, Vaughan, Markham, Richmond Hill, Pickering or other municipalities outside the city’s boundaries.
Can land transfer tax be added to my mortgage?
Generally no. Land transfer tax is a closing cost that your lawyer pays on your behalf when the deal closes, using funds you provide. Lenders expect you to have it in cash, along with legal fees, adjustments and the PST on any CMHC premium. Build it into your savings target before you start shopping.
When do you pay land transfer tax on a townhouse?
You pay it on closing day, when the deed is registered in your name. Your lawyer calculates the tax, includes it in the statement of adjustments, and pays it electronically when registering the transfer. Plan to send your lawyer the full closing funds, including the tax, a few days before closing so the deal is not delayed.
Want to compare the full closing cost on a specific listing? Use our townhouse buyer calculators, or browse Toronto townhouses and the 905 side by side.
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.