Toronto's municipal land transfer tax: the second bill buyers forget
Doorvia Guides · September 10, 2026
Buying inside the City of Toronto means paying a municipal land transfer tax on top of the provincial one.
If the property is inside the City of Toronto boundary, you pay a municipal land transfer tax in addition to the provincial tax. The municipal tax broadly mirrors the provincial bracket structure, with additional higher brackets applied to very expensive residential properties.
In practice this roughly doubles the land transfer tax on a Toronto purchase compared with an identical price in Mississauga, Vaughan or Pickering. It is one of the real reasons a 905 home can cost less to close on than a 416 home at the same price.
Ask your lawyer for a written closing-cost estimate that shows both taxes separately, and confirm the property's municipal boundary if it sits near the city limit.
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