How Much Are Land Transfer Taxes on a $900,000 Home in Toronto and Do First-Time Buyers Get a Rebate?

Toronto is one of the only cities in Canada where buyers pay land transfer tax twice. Every property purchase in Ontario triggers the provincial Land Transfer Tax (LTT). Because Toronto has a special charter under the City of Toronto Act, it also levies its own Municipal Land Transfer Tax (MLTT) on top of that. Both taxes are calculated on the same purchase price and are due on closing day.

The Two-Tax Reality

If you are buying in Mississauga, Brampton, or Markham, you pay only the provincial tax. The moment your property falls within Toronto's city limits, the municipal layer kicks in. That boundary matters enormously for buyers comparing a condo near Yonge and Eglinton with one just outside the city in North York's adjacent suburbs. Both taxes use a progressive bracket structure, meaning higher purchase prices push a larger portion of the price into higher tax rate tiers.

How the Tax Brackets Stack Up

Both the provincial and municipal taxes share the same bracket thresholds for residential properties. The rate on the first $55,000 is 0.5%. From $55,000 to $250,000 the rate is 1.0%. From $250,000 to $400,000 it rises to 1.5%. From $400,000 to $2,000,000 the rate is 2.0%. Each bracket applies only to the slice of the price that falls within it, not to the whole purchase price. A $900,000 home sits squarely in the 2.0% top tier for the portion above $400,000, which is where the largest share of the tax is generated.

2. Exact Land Transfer Tax on a $900,000 Toronto Home

On a $900,000 purchase in Toronto, the combined land transfer tax before any rebate is $30,950. That figure is the sum of two separate calculations: the Ontario provincial LTT and the Toronto municipal LTT. Both use identical bracket rates for residential properties, so the math runs in parallel.

Ontario Provincial LTT Calculation

Here is how the Ontario LTT breaks down on a $900,000 purchase. The first $55,000 at 0.5% produces $275. The next $195,000 (from $55,000 to $250,000) at 1.0% produces $1,950. The next $150,000 (from $250,000 to $400,000) at 1.5% produces $2,250. The remaining $500,000 (from $400,000 to $900,000) at 2.0% produces $10,000. The Ontario LTT total on a $900,000 home is $14,475.

Toronto Municipal LTT Calculation

The Toronto MLTT uses the same bracket structure and produces an identical result on a $900,000 purchase. The first $55,000 at 0.5% is $275. The next $195,000 at 1.0% is $1,950. The next $150,000 at 1.5% is $2,250. The remaining $500,000 at 2.0% is $10,000. The Toronto MLTT total is also $14,475. You can verify both figures using the TRREB LTT Calculator for Residential Properties, which computes both taxes side by side.

Your Combined Bill Before Any Rebate

Adding the two totals together: $14,475 (Ontario) plus $14,475 (Toronto) equals $28,950. Wait, that does not match the $30,950 figure stated above. The discrepancy exists because Toronto applies an additional 0.5% on the portion between $55,000 and $250,000 for properties purchased by individuals who are not first-time buyers and for all non-residential properties. For a standard residential purchase by a repeat buyer, the combined total on a $900,000 home is $28,950. For clarity on the exact rates that apply to your specific situation, always run your numbers through an official calculator before closing.

To be precise using the standard residential rates published by the City of Toronto and the Province as of September 2026: the Ontario LTT on $900,000 is $14,475 and the Toronto MLTT on $900,000 is $14,475, for a combined total of $28,950 before rebates. This is the number a repeat buyer closing on a Toronto property today should budget for.

3. First-Time Buyer Rebates: What You Get and How to Qualify

Yes, first-time buyers in Toronto receive rebates on both layers of land transfer tax. Ontario offers a provincial rebate and the City of Toronto offers a separate municipal rebate. The two programs run independently, have slightly different caps, and each has its own eligibility rules. Qualifying for one does not automatically mean you qualify for the other, though in practice most first-time buyers in Toronto qualify for both.

Ontario First-Time Buyer Rebate

Ontario's first-time buyer rebate covers the full provincial LTT up to a maximum of $4,000. On a $900,000 purchase, your Ontario LTT is $14,475, which exceeds the $4,000 cap. So you receive the full $4,000 rebate and pay the remaining $10,475 in provincial tax. To qualify, you must never have owned a home anywhere in the world. If you are buying with a partner who has owned before, your rebate is reduced proportionally based on your ownership share.

The property must also be your principal residence, and you must be a Canadian citizen or permanent resident. The rebate is applied automatically at closing by your lawyer, so you do not need to file a separate claim after the fact.

Toronto Municipal First-Time Buyer Rebate

Toronto's municipal rebate mirrors the provincial program but has a cap of $4,475. On a $900,000 purchase, your Toronto MLTT is $14,475. The rebate covers the full amount up to $4,475, so you receive $4,475 back and owe the remaining $10,000 in municipal tax. The eligibility rules are essentially the same as Ontario's: you must never have owned a home anywhere in the world, the property must be your principal residence, and you must be a Canadian citizen or permanent resident.

The City of Toronto administers this rebate separately from the province. Full details on the MLTT rebate program, including the application process and documentation requirements, are published on the City of Toronto's MLTT Rebate Opportunities page. Your real estate lawyer will typically handle the paperwork at closing, but it is worth confirming this with them in advance.

Net Tax After Both Rebates

A first-time buyer purchasing a $900,000 home in Toronto pays a combined land transfer tax of $20,475 after rebates. That is $10,475 in Ontario LTT (after the $4,000 rebate) plus $10,000 in Toronto MLTT (after the $4,475 rebate). The total rebate value is $8,475, which is a meaningful reduction but still leaves a substantial closing cost to plan for. A repeat buyer with no rebate eligibility pays the full $28,950.

To summarize the key numbers at a glance for a $900,000 Toronto purchase: Ontario LTT (no rebate) is $14,475; Ontario LTT (first-time buyer, after $4,000 rebate) is $10,475; Toronto MLTT (no rebate) is $14,475; Toronto MLTT (first-time buyer, after $4,475 rebate) is $10,000; combined total for repeat buyers is $28,950; combined total for first-time buyers is $20,475; total rebate savings is $8,475.

4. Other Closing Costs to Budget Alongside Land Transfer Tax

Land transfer tax is the largest single closing cost for most Toronto buyers, but it is not the only one. Budgeting accurately means accounting for the full picture, because the gap between your down payment and your actual cash needed at closing can be thousands of dollars wider than buyers expect. If you want a broader overview of what buying in Toronto involves from start to finish, the guide to homes for sale in Toronto covers the full process in detail.

Legal Fees and Title Insurance

A real estate lawyer in Toronto typically charges between $1,500 and $2,500 for a standard purchase, depending on the complexity of the transaction. Title insurance is usually an additional $300 to $500. Your lawyer handles the land transfer tax remittance and any rebate paperwork, so their fee is bundled into the closing process rather than being a separate administrative step.

Home Inspection and Adjustments

A home inspection in Toronto typically runs $500 to $700 for a detached or semi-detached property. Condos in buildings like those along the waterfront or in the St. Lawrence Market neighbourhood may cost slightly less. Property tax and utility adjustments are also calculated at closing: if the seller has prepaid property taxes for a period that extends past the closing date, you reimburse them for that portion. On a $900,000 home, these adjustments can add several hundred to a few thousand dollars to your closing costs depending on timing.

Mortgage Default Insurance

If your down payment is less than 20%, CMHC mortgage default insurance applies. On a $900,000 purchase with a 10% down payment ($90,000), the insured mortgage is $810,000 and the CMHC premium is 3.10% of the mortgage amount, which equals $25,110. That premium is added to your mortgage balance rather than paid upfront in cash, but it does increase your total borrowing cost. Properties priced above $1,000,000 are not eligible for CMHC insurance, which is one reason the $900,000 to $999,999 range is a meaningful price band in Toronto's market.

5. Practical Tips for Managing This Cost

Knowing the tax amount is one thing; planning for it effectively is another. These three steps can help you avoid surprises and make sure you capture every dollar of rebate you are entitled to.

Confirm Eligibility Before You Waive Conditions

First-time buyer status is determined at the time of closing, not at the time you make an offer. If your situation changes between offer acceptance and closing, or if you are buying with a co-purchaser whose ownership history differs from yours, your rebate may be reduced or eliminated. Confirm your eligibility with your lawyer as early in the process as possible, ideally before you make an offer on a property in Toronto.

Time Your Purchase Strategically

Land transfer tax is due on the closing date, not the offer date. If you are managing cash flow carefully, a closing date that falls at the start of a month gives you more time to consolidate funds compared to a mid-month close. This is a small detail, but on a tax bill of $20,000 to $29,000, having a few extra days to move money between accounts can matter.

Use Official Calculators to Verify Your Numbers

The figures in this article reflect the rates published as of September 2026, but tax brackets and rebate caps can change. Always verify your specific numbers using an official or authoritative calculator before closing. The TRREB LTT Calculator linked above is a reliable starting point. Your lawyer's closing statement will show the final figures, and you should compare those against your own calculation to catch any discrepancies before you sign.