Toronto Luxury Closing Costs: A $1M to $20M Buyer's Guide

Land transfer tax, HST, and the full closing-day picture for Toronto luxury real estate - with worked calculations and a quick-reference table for purchases up to $20M.

Quick Answer: Buying a luxury home in Toronto involves two land transfer taxes - Ontario's Provincial Land Transfer Tax (PLTT) and the City of Toronto's Municipal Land Transfer Tax (MLTT). Both are calculated on the purchase price, and both are due in cash on closing day. As of April 1, 2026, the City updated its MLTT rates for homes above $3M. [1] None of this is complicated once it is mapped out and for a prepared buyer working with the right team, the closing-day number holds no surprises. At the luxury level, closing costs become a planning exercise of their own, which is why sophisticated buyers model them early, alongside the offer itself. This guide lays out the rates, shows the math at every price point, and gives you a single reference table to plan from - a working substitute for any Toronto land transfer tax calculator.

The Three Taxes

Three taxes can apply to a Toronto residential purchase. Two are almost always in play. The third applies only when the home is newly built.

Ontario Provincial Land Transfer Tax (PLTT)

Applies to every property bought anywhere in Ontario. It uses a tiered bracket system based on purchase price, and these rates have been stable since 2017. [2]

Toronto Municipal Land Transfer Tax (MLTT)

Applies to properties inside the City of Toronto, on top of the provincial tax. The MLTT is calculated slice by slice, like income tax. A buyer pays the standard bracket rates on every dollar up to $3M, and the higher luxury rates apply only to the portion above $3M. As of April 1, 2026, those luxury rates apply to residential properties containing one or two single-family residences. [1]

MLTT Surcharge Brackets

The standard MLTT on the first $3M works out to $56,475. Above that, each slice is taxed at its luxury rate.

Harmonized Sales Tax (HST) 

Applies only to new construction. Resale homes - those previously lived in - carry 0% HST. A newly built or pre-construction home is treated as a new product, and 13% HST applies. A rebate is available to offset part of it, and in 2026 a much larger temporary rebate was introduced. Both are covered in Scenario D below.

Estimated Combined Taxes at a Glance

The table below shows the total combined land transfer tax (PLTT + MLTT) on a resale purchase at each price point, using the rates in effect as of April 1, 2026. [1] [2] This is a planning estimate; your real estate lawyer confirms the exact figure at closing.

The scenarios below show how these figures are built, step by step.

Scenario A: $1,000,000 Resale

At $1M, the purchase sits below the luxury thresholds, so PLTT and MLTT mirror each other exactly.

• 0.5% on first $55,000 = $275

• 1.0% on next $195,000 = $1,950

• 1.5% on next $150,000 = $2,250

• 2.0% on remaining $600,000 = $12,000

• PLTT subtotal: $16,475

• MLTT subtotal: $16,475

• Total land transfer tax: $32,950

A buyer at $1M plans for roughly 3.30% of the purchase price in land transfer tax, ahead of legal fees, adjustments, and title insurance.

Scenario B: $5,000,000 Resale

Above $3M, the MLTT moves through two luxury tiers.

• PLTT on first $2M = $36,475

• PLTT on next $3M at 2.5% = $75,000

• PLTT total: $111,475

• MLTT on first $3M = $56,475

• MLTT on $3M-$4M at 4.40% = $44,000

• MLTT on $4M-$5M at 5.45% = $54,500

• MLTT total: $154,975

• Total land transfer tax: $266,450

A buyer at $5M plans for close to 5.33% of the purchase price in transfer tax.

Scenario C: $10,000,000 Resale

At $10M, the 6.50% tier covers the full $5M to $10M band.

• PLTT on first $2M = $36,475

• PLTT on next $8M at 2.5% = $200,000

• PLTT total: $236,475

• MLTT on first $3M = $56,475

• MLTT on $3M-$4M at 4.40% = $44,000

• MLTT on $4M-$5M at 5.45% = $54,500

• MLTT on $5M-$10M at 6.50% = $325,000

• MLTT total: $479,975

• Total land transfer tax: $716,450

At $10M, land transfer taxes come to about 7.16% of the purchase price.

Scenario D: New Build and the 2026 Enhanced HST Rebate

A new build adds HST - and here is the good news for new-build buyers. In March 2026, the federal and Ontario governments introduced a much larger temporary HST rebate. For eligible new homes valued up to $1M, the full 13% HST can be rebated - up to $130,000 combined. [7] The maximum holds for homes up to $1.5M, then phases down on a sliding scale between $1.5M and $1.85M. Homes above $1.85M continue to receive the standard $24,000 maximum. [8]

In practice: a buyer of an eligible $1M new-build pays close to $0 HST after the rebate, compared with roughly $106,000 net under the old rules - a meaningful saving on a primary-residence purchase. The rebate applies to agreements signed between April 1, 2026 and March 31, 2027. [9] As of mid-2026, the rebate remains subject to proposed amendments to the federal Excise Tax Act, so buyers should confirm eligibility with their real estate lawyer. [8]

At the upper-luxury level, the standard $24,000 rebate continues to apply. Take a $5M new build, where two contract structures dominate the custom-build market and create very different closing days. If the contract reads "$5,000,000 plus HST" - standard for ultra-luxury custom builds - the buyer carries the HST separately on top of the purchase price:

• PLTT: $111,475

• MLTT: $154,975

• Land transfer tax total: $266,450

• Gross HST at 13% on $5M: $650,000

• Less new housing rebate (max provincial): -$24,000

• Net HST due: $626,000

• Total tax bill: $892,450

If the contract reads "HST included in purchase price" - common with production builders such as Mattamy or Tridel - the builder absorbs the HST within the agreed price, and the buyer's closing tax returns to the land transfer figure alone. In custom-build territory, "HST included" is the exception, not the default. A real estate lawyer should confirm which structure applies before signing - one of many details we help our buyers verify early.

Additional Closing Costs Buyers Should Anticipate

Alongside land transfer tax and HST, a few smaller costs are due around closing day, paid in cash:

• Legal fees and disbursements

• Title insurance

• MLTT administration fee [3]

• Closing adjustments (prepaid property taxes, utilities, condo fees)

• Status certificate review (condos)

• Survey or professional reviews (freehold and custom builds)

• Foreign-buyer taxes, where applicable (see below)

For non-resident buyers, two additional taxes apply: Ontario's Non-Resident Speculation Tax at 25% [4] and the City of Toronto's Municipal Non-Resident Speculation Tax at 10%, in effect since January 1, 2025. [5] Most non-citizen, non-permanent-resident purchases are also restricted under the federal foreign-buyer ban, in effect through January 1, 2027. [6] These rules carry narrow exceptions and warrant legal review early in the process.

Frequently Asked Questions

Which MLTT rates apply to my closing? 

The luxury rates apply to transactions registered on or after April 1, 2026. [1] Your real estate lawyer calculates the exact amount and remits it at registration.

Can closing taxes be rolled into the mortgage? 

No. PLTT, MLTT, and HST on a new build are due in cash on closing day. Mortgage proceeds cover the purchase price only.

Does the first-time buyer rebate apply at luxury price points? 

It covers up to $4,000 of PLTT and $4,475 of MLTT, but only on the tax actually owing. At $1M the full $8,475 applies; above that, the remainder is paid in cash.

What is the difference between buying in Toronto and the surrounding GTA? 

Properties in neighbouring municipalities pay PLTT only, while Toronto buyers pay PLTT plus MLTT. [2] We help buyers weigh location, value, and total cost together so the decision reflects the full picture.

Are non-resident buyers subject to additional closing taxes? 

Yes - Ontario's 25% NRST and Toronto's 10% MNRST, alongside the federal foreign-buyer ban in effect through January 1, 2027. [4] [5] [6]

Is there a "mansion tax" in Toronto? 

There is no tax officially named that way. The term is sometimes used informally for the higher MLTT rates that kick in above $3M. The actual rates and brackets are set out in the MLTT Surcharge Brackets table above.

How do closing costs work on Toronto luxury condos? 

The same way they work on freehold - PLTT and MLTT apply on the purchase price, HST applies only on new builds, and condos add a status certificate review fee plus condo-fee adjustments at closing. For most luxury condo buyers under $3M, the math follows Scenario A or sits between Scenarios A and B.

The Bottom Line

For luxury resale buyers in Toronto, closing-day taxes run roughly 3.3% of purchase price at $1M, climb past 5.3% at $5M, and reach about 7.2% at $10M. The key in every case is the same: model the full closing-day cash position early, not just the down payment. That single step is what turns a complex luxury purchase into a smooth one.

That is exactly where we add value. Nissan Michael and Grace Chan of the Mr. Yorkville Real Estate Group specialize in Toronto's luxury real estate market - condominium and freehold - with advance access to off-market opportunities that gives buyers the time to plan, model, and time their closings with precision. We routinely prepare confidential closing-cost projections for clients privately and in advance of offer negotiations. Contact us to discuss your purchase.

YOU BELONG TO THE CITY™

Sources

_{[1] City of Toronto, Municipal Land Transfer Tax & Municipal Non-Resident Speculation Tax Rates & Fees (revised graduated MLTT rates effective April 1, 2026).}

_{[2] Ontario Ministry of Finance, Land Transfer Tax (provincial bracket rates, stable since 2017).}

_{[3] City of Toronto, MLTT Administration Fee ($102.56 + HST per transaction).}

_{[4] Government of Ontario, Non-Resident Speculation Tax (25% rate, effective October 25, 2022).}

_{[5] City of Toronto, Municipal Non-Resident Speculation Tax (10% rate, effective January 1, 2025).}

_{[6] Government of Canada / CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act (extended to January 1, 2027).}

_{[7] Government of Ontario, 2026 Budget - HST relief on new homes (up to $130,000 combined federal-provincial rebate on eligible homes up to $1M).}

_{[8] PwC Canada / Ontario Ministry of Finance, enhanced HST relief on new homes (sliding scale $1.5M-$1.85M; $24,000 above $1.85M; pending amendments to the federal Excise Tax Act, not yet enacted).}

_{[9] Government of Ontario, enhanced New Housing Rebate (applies to agreements signed April 1, 2026 - March 31, 2027).}