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Alex Goodman

Closing costs in Ontario — what you'll actually pay

Nobody likes a surprise at the closing table. Here's exactly what the costs are in Ontario — and the one that catches Toronto buyers off guard, because they pay land transfer tax twice.

Updated June 2026

Ontario Land Transfer Tax

Every Ontario buyer pays provincial Land Transfer Tax, charged on a marginal scale (Government of Ontario):

  • 0.5% on the value up to $55,000
  • 1.0% on $55,000 to $250,000
  • 1.5% on $250,000 to $400,000
  • 2.0% on the amount over $400,000
  • 2.5% on the amount over $2,000,000 (for one or two single-family residences)

Toronto's second land transfer tax (MLTT)

Buy inside the City of Toronto and you pay a Municipal Land Transfer Tax on top of the provincial one — effectively land transfer tax twice. As of April 1, 2026, Toronto applies graduated MLTT rates on homes with one or two single-family residences (City of Toronto): the same 0.5%–2.0% steps up to $2,000,000, then 2.5% ($2–3M), 4.40% ($3–4M), 5.45% ($4–5M), 6.50% ($5–10M), 7.55% ($10–20M), and 8.60% above $20,000,000.

A Municipal Non-Resident Speculation Tax of 10% also applies to certain foreign buyers, effective January 1, 2025 (City of Toronto).

First-time buyer rebates

First-time buyers can claim a provincial Land Transfer Tax refund of up to $4,000 — meaning no provincial LTT on the first $368,000 of value (Government of Ontario). The City of Toronto also offers a first-time buyer MLTT rebate (City of Toronto). TODO — Alex: confirm the current Toronto MLTT rebate maximum before quoting a figure.

Legal, title, and the rest

Beyond land transfer tax, budget for your real estate lawyer's fees and disbursements, title insurance, and adjustments (the seller's prepaid property taxes or utilities you reimburse at closing). For sellers, the main costs are the negotiated commission (commission is always negotiable — there is no standard rate), legal fees, and any mortgage discharge fee. Exact dollar figures vary by deal — confirm them with your lawyer. TODO — Alex: add typical local lawyer/title ranges only if a citable source is used.

Questions, answered straight

How much is land transfer tax in Ontario?
It's marginal: 0.5% up to $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% above $400,000, and 2.5% above $2,000,000 for one or two single-family residences (Government of Ontario).
Do Toronto buyers pay land transfer tax twice?
Yes — the provincial Land Transfer Tax plus the City of Toronto's Municipal Land Transfer Tax, which moved to graduated rates on higher-value homes effective April 1, 2026 (City of Toronto).
Is there a first-time buyer rebate?
Yes. Ontario offers a refund of up to $4,000 (no provincial LTT on the first $368,000 of value), and the City of Toronto offers its own MLTT rebate (Government of Ontario; City of Toronto).

Sources: Government of Ontario — Land Transfer Tax · City of Toronto — Municipal Land Transfer Tax (rates effective April 1, 2026)

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