Toronto’s Municipal Land Transfer Tax (MLTT) is rising...again.
Prior to January 1, 2024, MLTT was a flat 2.5% on all properties. Now effective April 1, 2026, the City of Toronto is adding graduated rates on residential properties exceeding $3,000,000.
While mid-market rates remain unchanged, the marginal tax rates for higher-value properties will increase significantly:
• $3M – $4M → from 3.5% to 4.40%
• $4M – $5M → from 4.5% to 5.45%
• $5M – $10M → from 5.5% to 6.50%
• $10M – $20M →from 6.5% to 7.55%
• Over $20M → from 7.5% to 8.60%
Because MLTT is applied marginally (and in addition to the Provincial Land Transfer Tax ), the impact on cash-to-close continues to grow.
Example MLTT on a $ 5,000,000 purchase:
- Pre-2024 was $111,475
- 2024–2025 was $141,475
- Post-April 2026 now will be $159,975
Total combined LTT (municipal + provincial): $271,450
Important reminder:
The closing date — not the signing date — determines the tax rate.
This new MLTT tax was pushed through very quickly. Many luxury buyers and sellers are working together to close prior to April 1st. However, this additional tax is a further deterrent to buy or sell in the Toronto market. Although it is one way to collect tax by taxing the wealthy, if the wealthy decide not to move, then there will be less tax.
If you are looking to buy or sell, we can help you run the numbers.
