GTA closing costs and land transfer tax explained

On a GTA purchase, plan for land transfer tax, the lawyer's fees and disbursements, title insurance, and the adjustments the lawyer collects for property tax and utilities. Those costs sit on top of the down payment. They are not part of the mortgage. Inside the City of Toronto you pay Ontario land transfer tax and Toronto's municipal land transfer tax. In Vaughan, Mississauga, Brampton, Oakville, and Milton you pay the Ontario tax only. North York and Etobicoke are inside the City of Toronto, so both taxes apply there too.

MKG Mortgages walks buyers through the mortgage side of closing from the North York office. The tax figure itself is confirmed by your real estate lawyer before you waive a condition. The brackets below are the published ones. They are not a filing.

Ontario land transfer tax

For registrations on or after January 1, 2017, Ontario land transfer tax on one or two single-family residences is charged in bands. The ministry's calculating page is the source: each band applies only to the slice of price inside it.

• 0.5% on the first $55,000
• 1% on the amount from $55,000 to $250,000
• 1.5% on the amount from $250,000 to $400,000
• 2% on the amount from $400,000 to $2,000,000
• 2.5% on the amount above $2,000,000

When the purchase is not one or two single-family residences, the top band stays at 2% above $400,000. A property that does not fit the residential schedule should be checked against that other schedule, not against the 2.5% line. The statute is the Land Transfer Tax Act. The working explanation is on Ontario's page for calculating land transfer tax.

Ontario and Toronto both publish rebates for some first-time buyers. This note does not calculate rebates, exemptions, or any non-resident speculation tax. Your lawyer applies what the file actually qualifies for. Do not subtract a rebate in your own spreadsheet until the lawyer has said it applies.

Toronto municipal land transfer tax

Toronto's municipal tax is a second calculation on the same price, for property inside the city. For transactions on or after April 1, 2026, By-law 132-2026 sets the residential bands for one or two single-family residences. Through $2,000,000 the slices match Ontario's. Above that, Toronto's bands are higher.

• 0.5% on the first $55,000
• 1% from $55,000 to $250,000
• 1.5% from $250,000 to $400,000
• 2% from $400,000 to $2,000,000
• 2.5% from $2,000,000 to $3,000,000
• 4.4% from $3,000,000 to $4,000,000
• 5.45% from $4,000,000 to $5,000,000
• 6.5% from $5,000,000 to $10,000,000
• 7.55% from $10,000,000 to $20,000,000
• 8.6% above $20,000,000

If the residential high-value schedule does not apply, Toronto's other schedule uses 2% above $400,000. The city's rates page and By-law 132-2026 are the references. A purchase signed earlier can still be taxed on the rules in force on the registration date. Ask the lawyer which date controls your file.

The closing costs and land transfer tax tool follows these brackets and does not calculate rebates. Use it before the lawyer's statement arrives. The lawyer still confirms the bill.

Illustrative example

Illustrative example. A single-family home is purchased for $850,000. Assume the registration uses the residential brackets above, the home is one single-family residence, and no rebate is applied in this arithmetic. The slices are:

• First $55,000 at 0.5% is $275
• Next $195,000 at 1% is $1,950
• Next $150,000 at 1.5% is $2,250
• Remaining $450,000 at 2% is $9,000

Ontario land transfer tax on that price is $13,475. Toronto's municipal tax, on the same slices because $850,000 is under $2,000,000, is also $13,475. A purchase in North York or elsewhere in the City of Toronto would show about $26,950 of land transfer tax before any rebate. The same purchase in Vaughan, Mississauga, Brampton, Oakville, or Milton would show the Ontario $13,475 only.

Change the price and the slices change. A price above $2,000,000 picks up the 2.5% Ontario band and, inside Toronto, the higher municipal bands from By-law 132-2026. This example is arithmetic on published brackets. It is not your statement of adjustments.

The rest of the closing bill

Land transfer tax is the line people under-budget. It is not the only line. The lawyer quotes the legal fee, the registration charges, and title insurance. Those quotes vary. Get them in writing when you hire the lawyer, which should be before you waive conditions, not the week of closing.

The statement of adjustments moves property tax, condo fees, and sometimes utilities between the seller and the buyer for the days each of you owns the home. A sale that closes just after the seller has prepaid a tax instalment can mean a credit you owe the seller. That is normal. It is also cash you need on closing day, separate from the down payment the lender calculated.

If the mortgage is high-ratio and the insurer charges a premium, that premium is part of the borrowing, often added to the mortgage. It is still a cost. Your approval documents name it. Do not guess it from a blog.

New construction adds builder deposits and taxes a resale house may not have. That mortgage path is pre-construction. HST background sits in the HST rebate and Toronto new builds. Your accountant or lawyer confirms the tax.

Before you write an offer, list the cash separately from the mortgage:

• Down payment the lender is not advancing, traced and sitting where the lawyer can receive it.
• Ontario land transfer tax, plus Toronto's municipal tax if the property is in the city.
• Lawyer's fee, disbursements, and title insurance, from the lawyer's quote.
• Adjustments for tax and utilities, estimated by the lawyer.
• A buffer for a number that moves between the waiver and the closing date.

Where to plan the purchase

The mortgage file and the closing budget should be the same conversation. City purchase pages:

• Home purchase
• Home purchase in North York
• Home purchase in Toronto
• Home purchase in Vaughan
• Home purchase in Mississauga
• Home purchase in Brampton
• Home purchase in Oakville
• Home purchase in Milton
• Closing costs and land transfer tax
• First-time home buyers

First-time buyers should ask the lawyer about rebates before they set the offer price. The rebate is a tax matter. The mortgage approval does not calculate it.

Frequently asked questions

Do I pay both taxes everywhere in the GTA?

No. Ontario land transfer tax applies across the province. Toronto's municipal land transfer tax applies inside the City of Toronto, which includes North York and Etobicoke. Vaughan, Mississauga, Brampton, Oakville, and Milton are outside that municipal tax.

Are the brackets the same for every property?

The bands in this note are for one or two single-family residences, on the dates named. Other property uses a schedule that stays at 2% above $400,000. Your lawyer confirms which schedule fits.

Can I add land transfer tax to the mortgage?

Sometimes a lender will allow closing costs inside a larger borrowing, and sometimes it will not. Do not assume the tax can be financed. If you need the mortgage to cover costs, say so before the offer, while the approval can still be sized.

Does this include the first-time buyer rebate?

No. Rebates and exemptions are left to the lawyer. Subtracting one in your own notes, then finding out you do not qualify, is how closings run short of cash.

Where do I check the arithmetic?

Use the closing costs tool for the brackets, then have the lawyer confirm the figure for your agreement. The tool is illustrative. The statement of adjustments is the bill.

Which city pays which tax

North York is part of the City of Toronto, so it pays both taxes, the same as Toronto, Scarborough, and Etobicoke. Vaughan, including Woodbridge, Mississauga, Brampton, Oakville, and Milton pay the Ontario tax only. Ontario's first-time refund is up to $4,000. Toronto's municipal rebate for a first home is up to $4,475. Those caps were read on October 18, 2026 from Ontario's refund page and Toronto's rebate page. A rebate still has to fit the buyer. The lawyer applies it. The city hubs answer the same question in local terms: North York, Toronto, Vaughan, Mississauga, Brampton, Oakville, and Milton.

Any rate or payment mentioned is illustrative and on approved credit (OAC). It is not a quote, a commitment, or a current offer.