Purchasing a high-value home in Toronto became more expensive in 2026. Effective April 1, 2026, the City of Toronto increased its graduated Municipal Land Transfer Tax (MLTT) rates for residential properties valued at more than $3 million. The higher rates apply to properties containing at least one and not more than two single-family residences.
The new Toronto MLTT rates are:
| Portion of Purchase Price | Toronto MLTT Rate |
| Over $3 million to $4 million | 4.40% |
| Over $4 million to $5 million | 5.45% |
| Over $5 million to $10 million | 6.50% |
| Over $10 million to $20 million | 7.55% |
| Over $20 million | 8.60% |
These are marginal rates, meaning the higher percentage applies only to the portion of the purchase price falling within each bracket—not to the entire purchase price.
How Much Did the Tax Increase?
Before April 1, 2026, Toronto already imposed higher MLTT rates on residential properties over $3 million. Those rates ranged from 3.5% on the $3 million to $4 million portion to 7.5% on the portion above $20 million. The 2026 changes increased each of those luxury-property brackets.
For example, the additional Toronto MLTT resulting from the 2026 increase is approximately:
- $4,500 more on a $3.5 million purchase;
- $9,000 more on a $4 million purchase;
- $18,500 more on a $5 million purchase; and
- $68,500 more on a $10 million purchase.
These increases apply to transactions registered, or where Toronto MLTT otherwise becomes payable, on or after April 1, 2026.
Remember: Toronto Buyers Pay Two Land Transfer Taxes
Toronto purchasers must also pay Ontario Land Transfer Tax in addition to Toronto’s MLTT. As a result, purchasers of higher-value Toronto properties should obtain an accurate calculation of their total land transfer taxes well before closing. The additional amount can be substantial and needs to be factored into the funds required to complete the transaction.
The Legal Takeaway
If you are planning to purchase a high-value property in Toronto, it is important to understand your total closing costs well before the transaction reaches its final stages. The increased 2026 Toronto MLTT rates can add a significant amount to the funds required on closing, especially when combined with Ontario Land Transfer Tax and other transaction costs. MBLAW Professional Corporation can help you calculate the applicable taxes, review the legal aspects of your purchase, and guide you through the closing process so that you know what to expect financially and legally. To get an initial estimate, use our Land Transfer Tax Calculator and see how much LTT may apply to your purchase price. For a complete review of your transaction and closing requirements, contact our real estate team.
