The Toronto Municipal Land Transfer Tax (MLTT) is levied by the City of Toronto on all real property transfers within Toronto’s boundaries, in addition to Ontario’s provincial LTT. Toronto is the only municipality in Ontario authorised to levy a municipal LTT. The combined LTT burden for Toronto purchasers is approximately double that of buyers in the rest of Ontario.
2025 Toronto MLTT Rate Table
| Purchase Price Portion | Toronto MLTT Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Combined Ontario LTT + Toronto MLTT
| Purchase Price | Ontario LTT | Toronto MLTT | Combined Total | After FTHB Rebates |
|---|---|---|---|---|
| $500,000 | $6,475 | $6,475 | $12,950 | $4,475 |
| $700,000 | $10,475 | $10,475 | $20,950 | $12,475 |
| $900,000 | $14,475 | $14,475 | $28,950 | $20,475 |
| $1,200,000 | $20,475 | $20,475 | $40,950 | $32,475 |
| $2,000,000 | $36,475 | $36,475 | $72,950 | N/A |
FTHB rebates: up to $4,000 Ontario LTT + up to $4,475 Toronto MLTT = up to $8,475 combined.
First-Time Home Buyer Rebates in Toronto
Toronto MLTT first-time buyer rebate is available under City of Toronto Municipal Code Chapter 760. The maximum rebate is $4,475. This rebate is claimed separately from the Ontario LTT FTHB rebate. Both are collected at closing; the purchaser’s lawyer files the rebate affidavits simultaneously with the transfer registration.
Eligibility requirements for the Toronto rebate mirror Ontario’s: the purchaser must be a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and occupy the property as a principal residence. For a joint purchase, if only one buyer qualifies, only that buyer’s proportionate share of the tax may be rebated.
Geographic Boundary for MLTT
Toronto MLTT applies within the City of Toronto as defined by the City of Toronto Act, 2006. The city boundary runs along Steeles Avenue to the north, the Etobicoke Creek to the west (abutting Mississauga), Lake Ontario to the south, and the Rouge River to the east (abutting Pickering and Markham in Durham Region). Properties immediately adjacent to the boundary require confirmation of the municipal address before closing to determine whether MLTT applies.
Impact on Affordability
For a median Toronto home purchase at approximately $1,100,000 in 2025, the combined LTT (Ontario + Toronto) is approximately $37,950 before any FTHB rebate. This represents a significant closing cost that is added to the down payment, legal fees, title insurance, and home inspection costs. Buyers should account for combined LTT in their down payment planning, as it is payable in cash at closing and cannot be financed into the mortgage.
Legislative Authority
The Toronto MLTT is authorised by the City of Toronto Act, 2006, s.267. It was enacted by Toronto City Council and came into force February 1, 2008. The rate schedule and first-time buyer rebate are set out in City of Toronto Municipal Code Chapter 760 (Land Transfer Tax). The City can amend the rates and rebate thresholds through the normal bylaw amendment process.
Source
City of Toronto Municipal Code Chapter 760 (Land Transfer Tax); City of Toronto Act, 2006, s.267; Ontario Land Transfer Tax Act, R.S.O. 1990, c.L.6; City of Toronto Land Transfer Tax guide.
Frequently asked questions
- What is the Toronto Municipal Land Transfer Tax (MLTT)?
- The Toronto Municipal Land Transfer Tax (MLTT) is a second land transfer tax levied by the City of Toronto on purchases of real property within Toronto's municipal boundaries. It was enacted under the City of Toronto Act, 2006, and came into effect February 1, 2008. Toronto is the only municipality in Ontario that levies a municipal LTT. The MLTT is calculated on the same purchase price as Ontario LTT, resulting in a combined tax approximately double that of elsewhere in Ontario.
- What are the 2025 Toronto MLTT rates?
- Toronto MLTT rates effective 2024 use the same marginal structure as Ontario LTT: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on the portion above $2,000,000. For residential properties, the rate schedule is identical to Ontario LTT, so the combined total LTT in Toronto is approximately double the Ontario LTT alone.
- Is there a first-time buyer rebate for Toronto MLTT?
- Yes. Toronto offers a separate MLTT rebate for first-time home buyers of up to $4,475 on the Toronto MLTT portion (City of Toronto Municipal Code Chapter 760). This rebate is separate from the Ontario LTT FTHB rebate of up to $4,000. A qualifying first-time buyer in Toronto can receive up to $8,475 combined in rebates ($4,000 Ontario + $4,475 Toronto). Eligibility requirements mirror Ontario's: must be a Canadian citizen or permanent resident, never previously owned a home, and occupy the property as principal residence.
- Does Toronto MLTT apply to properties in the GTA but outside Toronto?
- No. Toronto MLTT applies only within the City of Toronto boundaries (the amalgamated City of Toronto as of 1998). Properties in Mississauga, Brampton, Markham, Vaughan, Richmond Hill, Oakville, Burlington, Pickering, Ajax, Whitby, or other GTA municipalities are not subject to MLTT. Only Ontario LTT applies outside Toronto.
- How much is combined LTT in Toronto on a $900,000 home?
- Ontario LTT on $900,000: 0.5% x $55,000 + 1.0% x $195,000 + 1.5% x $150,000 + 2.0% x $500,000 = $275 + $1,950 + $2,250 + $10,000 = $14,475. Toronto MLTT on $900,000: same calculation = $14,475. Combined: $28,950. After both FTHB rebates ($4,000 + $4,475 = $8,475): $20,475.
- When is Toronto MLTT due?
- Toronto MLTT is due on the date of registration of the transfer, the same as Ontario LTT. Both are collected at closing by the purchaser's lawyer and remitted through the land registration system. The City of Toronto receives its MLTT directly; Ontario's Ministry of Finance receives the provincial LTT.
- Are there exemptions from Toronto MLTT?
- Exemptions mirror many Ontario LTT exemptions: spousal transfers (between spouses with no money changing hands), transfers to a child from a parent in certain circumstances, transfers under court orders, and certain corporate reorganisation transfers. Transfers of new construction from a builder to a purchaser in certain circumstances may also qualify for partial or full exemption. An affidavit of exemption must be registered with the transfer.
- How do I calculate whether a property is in Toronto for MLTT purposes?
- Use the address or property identification number (PIN) and verify it falls within the City of Toronto as constituted by the City of Toronto Act, 2006. The City of Toronto's online mapping tools allow confirmation. Neighbourhoods bordering the city limits (e.g., North York at the Steeles Avenue border, Etobicoke at the Mississauga boundary) should be verified before closing. The purchaser's lawyer confirms MLTT applicability as part of the closing process.
- Is Toronto MLTT indexed to inflation?
- No. The Toronto MLTT rate schedule is set by City of Toronto bylaw and does not automatically adjust for inflation or home price appreciation. The City of Toronto periodically reviews and adjusts the schedule through the annual budget process. The current schedule has been in place since February 2008 with periodic rate adjustments; the 2.5% tier above $2,000,000 was added in 2017.
- Is Toronto MLTT deductible for tax purposes?
- For a principal residence, Toronto MLTT is not deductible. For a rental or investment property, Toronto MLTT is added to the adjusted cost base (ACB) of the property, reducing the capital gain on eventual sale. Like Ontario LTT, it is not a deductible current expense in the year of purchase for income-producing properties.