Toronto's Luxury Land Transfer Tax: What Changed in 2026
If you're buying a property over $3 million in Toronto, the math changed as of April 1, 2026. A new set of escalating brackets applies specifically to higher-value residential purchases, on top of the standard municipal land transfer tax. Here's what's different.
The New Brackets
For eligible residential properties over $3 million, Toronto's MLTT rises from the 2.5% rate that applies to the $2M–$3M portion:
| Portion of price | Marginal rate |
|---|---|
| $3M – $4M | 4.40% |
| $4M – $5M | 5.45% |
| $5M – $10M | 6.50% |
| $10M – $20M | 7.55% |
| Over $20M | 8.60% |
These rates apply only to the portion of the price within each bracket — the same marginal structure as the standard brackets below $3 million, just extended much higher.
A Worked Example
For a $5 million residential purchase in Toronto, here's how the municipal tax alone breaks down:
- Standard brackets up to $3M (mirroring the provincial structure): roughly $61,475
- 4.40% on the $3M–$4M portion: $44,000
- 5.45% on the $4M–$5M portion: $54,500
Combined with the equivalent provincial tax (which does not have a luxury tier — it caps at 2.5% above $2M), a $5 million Toronto purchase works out to a total land transfer tax bill of roughly $271,450 — a substantial closing cost that's easy to underestimate using a calculator that hasn't been updated for these brackets.
Why This Matters Even If You're Not Buying at $5M+
Two reasons this is worth knowing about even for buyers well under the threshold:
It affects how comparison tools should be trusted. Any land transfer tax calculator that hasn't been updated since April 2026 will significantly understate costs for higher-value Toronto purchases — worth double-checking that any tool you use reflects the current brackets.
It signals where Toronto's tax policy is heading. These brackets were introduced specifically to target higher-value residential transactions, following a broader pattern of municipalities looking to luxury real estate as a revenue source. Buyers and sellers active in Toronto's upper price tiers should expect this kind of bracket adjustment to be reviewed again over time.
Who This Applies To
The luxury brackets apply specifically to residential properties with one or two single-family residences — the exact property type matters for whether these rates apply, so it's worth confirming with your real estate lawyer if your purchase is close to the $3 million threshold or involves a property type that might be classified differently.
This is general information, not tax or legal advice. Rates are current as of the date shown and subject to change. Use our Land Transfer Tax Calculator, which reflects the current 2026 luxury brackets, for a personalized estimate — then confirm the exact figure with your real estate lawyer before closing.