Toronto is the only city in Ontario where buyers pay two separate land transfer taxes, and understanding how that stacks up is essential before you set your final budget.
Why Toronto Buyers Pay Twice
In addition to Ontario's provincial land transfer tax, the City of Toronto levies its own municipal land transfer tax on properties within city limits, a cost buyers in Mississauga, Vaughan, or Brampton don't face.
How the Tax Is Calculated
Both the provincial and municipal taxes are calculated on a marginal, tiered basis tied to your purchase price, meaning the effective rate increases as the price climbs into higher brackets.
- Ask your real estate lawyer for an exact land transfer tax calculation once you're under contract
- Confirm your eligibility for first-time buyer rebates on both the provincial and municipal tax
- Factor this cost into your total closing budget, not just your down payment
Next step
Numbers can be intimidating, you don't have to run them alone. Contact Hamodi Realty for a personalized affordability breakdown and a referral to trusted local mortgage professionals who know the GTA market inside and out.