What Is the Wealth Transfer Tax on Luxury Homes in Toronto?

Toronto charges an expanded Municipal Land Transfer Tax (MLTT) on homes valued over $3 million, with progressive rates from 3.5% up to 7.5%.

For residential properties valued at $3 million or more, Toronto applies additional MLTT tiers. These are one-time transaction taxes paid at closing, not ongoing wealth taxes.

How Are the Luxury MLTT Rates Structured?

The tax increases progressively with price, similar to income tax brackets.

Property ValueMLTT Rate Applied
$3M – $4M: 3.5%
$4M – $5M: 4.5%
$5M – $10M: 5.5%
$10M – $20M: 6.5%
$20M+: 7.5%

These rates apply in addition to the standard Ontario and Toronto land transfer taxes, significantly increasing closing costs for high-end purchases.

Why Does This Matter for Buyers?

Luxury buyers in Toronto face much higher closing costs, making it essential to plan carefully.

• On a $5M home, the combined land transfer taxes can run well into the six figures.
• These costs must be paid in cash at closing and cannot be rolled into your mortgage.
• For some buyers, the tax burden may influence neighbourhood choice, property type, or purchase timing.

The Fox Marin Team ensures that clients understand the full cost of ownership including luxury land transfer taxes so they can plan with clarity and confidence.

Did you find this useful?