Land Transfer Tax in Toronto: What Etobicoke Buyers Actually Pay in 2026

Buyer Advice Dave Dubbin July 27, 2026

Buy a home anywhere in the City of Toronto, and that includes every part of Etobicoke, and you pay land transfer tax twice. Once to the province of Ontario and once to the city. On a $1,000,000 purchase that works out to about $32,950 combined. First time buyers can get up to $8,475 of it back. It is usually the single biggest closing cost, it cannot be rolled into your mortgage, and it surprises more buyers than any other number in the deal. Here is how the math actually works.

Working out what you can really afford? Search homes with your true budget in mind or ask us to run the numbers with you.

Why Toronto buyers pay twice

Ontario charges land transfer tax on every home purchase in the province. Toronto is the only municipality in Ontario that charges its own land transfer tax on top, and for most homes the city simply mirrors the provincial brackets. Buy in Mississauga and you pay the provincial tax only. Buy on the Etobicoke side of the border and you pay both. That is just the reality of a Toronto address, and it belongs in your budget from day one.

How the tax is calculated in 2026

Both the provincial and the Toronto tax use marginal brackets, like income tax. For a home with one or two single family residences, each of the two taxes charges:

0.5 percent on the first $55,000
1 percent from $55,000 to $250,000
1.5 percent from $250,000 to $400,000
2 percent from $400,000 to $2,000,000
2.5 percent on anything above $2,000,000

Remember: that list applies twice, once for Ontario and once for Toronto.

Two real world examples

On an $800,000 purchase, a typical semi or a larger condo in south Etobicoke, each tax comes to $12,475. Combined: $24,950.

On a $1,000,000 purchase, which is detached bungalow territory in much of Etobicoke, each tax comes to $16,475. Combined: $32,950.

The key point is that this money is due in cash on closing day, on top of your down payment. Your lawyer collects it and remits it. No lender will add it to your mortgage.

Budgeting for a purchase? These three go into the rest of the numbers:

First time buyer rebates: up to $8,475 back

This is the good news section. Ontario rebates up to $4,000 of the provincial tax for eligible first time buyers, and Toronto rebates up to $4,475 of the municipal side. Together that is up to $8,475, which fully covers the tax on roughly the first $400,000 of the price on the Toronto side.

To qualify, you generally need to be at least 18, never have owned a home or an interest in one anywhere in the world, and move into the property within nine months of closing. One wrinkle worth knowing: if you are married and your spouse has owned a home while you were married to each other, it can reduce or eliminate your rebate. If that is your situation, get advice before you count on the money.

Back to our $800,000 example: a qualifying first time buyer pays $16,475 instead of $24,950.

Buying above $3 million? The rules changed in April

As of April 1, 2026 the city raised its rates on luxury purchases. The Toronto side now runs from 4.4 percent up to 8.6 percent on the portion of the price above $3 million, layered in brackets as the price climbs. In practice this matters for the rebuild and estate markets in pockets like The Kingsway, Sunnylea, and Princess-Rosethorn, where finished homes can cross that line. If you are shopping in that range, have your lawyer quote the exact figure before you offer.

The one line to remember

For a typical Etobicoke purchase under $2 million, set aside roughly 3 to 3.5 percent of the purchase price for land transfer tax. Build it into your budget at the start and it is a line item. Discover it two weeks before closing and it is a crisis. We have seen both, and we strongly recommend the first one.