If you are weighing a move within the GTA, the big fork in the road is simple: buy inside the City of Toronto and pay both the provincial land transfer tax and the city’s Municipal Land Transfer Tax, or buy in the 905 and pay only the provincial tax. That extra municipal layer can change your cash to close, your monthly plan, and even the neighbourhoods you target. Use this guide to compare totals, see where the dollars go, and plan your next move with confidence.
Note: This guide is educational. Always verify numbers for your situation with your real estate lawyer, lender, and accountant, and use the City and Province calculators for exact figures.
Toronto MLTT vs 905: Why It Matters
Toronto buyers pay two transfer taxes at registration: Ontario’s provincial Land Transfer Tax and Toronto’s Municipal Land Transfer Tax. Buyers in the 905 pay only the provincial LTT. For many common price points, Toronto’s municipal tax mirrors the provincial bands, which means your land transfer total inside the city is often about double what you would pay in the 905 before rebates based on the Province’s formulas and the City’s published MLTT tables from the City of Toronto.
First-time buyers can reduce this bite with two separate rebates: up to $4,000 from Ontario and up to $4,475 from Toronto if you buy in the city, for a combined potential relief of up to $8,475 if you qualify for both see Ontario’s refund and Toronto’s MLTT rebate.
Beyond closing, location influences property taxes, commute costs, and the type of home you can buy. Comparing the city and the 905 side by side gives you a clearer budget and a smoother timeline.
Buying In Toronto: Cost Components
One-Time Closing Costs To Expect
- Land transfer taxes at registration. In Toronto you pay both Ontario LTT and the City’s MLTT. The City’s brackets for many single-family purchases mirror the Province up to 2 million dollars, with additional higher bands above that. Use the Province’s LTT formula and the City’s MLTT tables or calculator for exact math Ontario LTT rules and Toronto MLTT rates. You can also run totals with the City’s MLTT calculator here.
- Legal, title, and registration fees. Your lawyer will give you an itemized closing estimate and register the transfer and the mortgage.
- Appraisal, inspection, and survey where applicable.
- Title insurance and disbursements.
- Condo-specific items if applicable, like status certificate fees.
If you are a first-time buyer in Toronto, ask your lawyer to apply both the provincial and municipal rebates at registration so you realize the savings upfront Ontario refund and Toronto rebate.
Special note for non-residents and certain corporations: Ontario’s Non-Resident Speculation Tax is 25 percent, and Toronto has introduced a Municipal Non-Resident Speculation Tax of 10 percent. These are separate from LTT and MLTT and can dramatically change your total. Confirm applicability with your lawyer early Ontario tax overview and Toronto MLTT rates page.
Ongoing Carrying Costs After Closing
- Property taxes. The City publishes residential tax rates each year. Your actual bill equals your assessed value times the blended rate. Track recent increases and budget updates when you compare neighbourhoods City property tax rates.
- Mortgage payment, insurance, and utilities.
- Condo fees if applicable, or maintenance and reserves for freehold homes.
- Transit, parking, and commuting costs. Downtown access can reduce vehicle expenses if you rely on transit.
Seller-Side Expenses If You Are Listing
- Pre-list investments like staging, cleaning, minor repairs, and pre-sale inspection.
- Commission and marketing, plus legal fees to discharge the mortgage and handle closing.
- Moving costs and potential bridge financing interest if you buy before you sell.
Buying In The 905: Cost Components
One-Time Closing Costs To Expect
- Land transfer tax. Outside Toronto you pay the provincial LTT only. Calculate with the Province’s formula or ask your lawyer for a closing estimate Ontario LTT formulas.
- Legal, title, and registration fees, inspection, appraisal, and title insurance.
- For new builds, account for builder adjustments and utility hook-ups in your budget.
First-time buyers in the 905 may receive the Ontario refund up to $4,000 if eligible Ontario first-time refund.
Ongoing Carrying Costs After Closing
- Property taxes set by your municipality and region, plus the education component. A lower rate can be offset by higher assessed values, so compare both assessed value and rate.
- Transportation costs. Commuting from many 905 areas can add fuel, parking, or GO transit expenses. Balance this against purchase price savings.
- Insurance, utilities, and maintenance that reflect larger lots or detached housing.
Seller-Side Expenses If You Are Listing
- Pre-list prep that highlights yard, parking, and family-friendly features.
- Commission and professional marketing that targets move-up families and commuters.
- Legal fees, moving costs, and potential bridge financing if you buy first.
Budget Scenarios For Typical Moves
Use a simple framework for each scenario: cash to close, monthly carrying, and net proceeds from your sale. Pair that with realistic timing so you do not rush deposits or overlap two homes longer than needed.
To understand the MLTT effect in Toronto, consider the Province’s and City’s examples: at 500,000 dollars, provincial LTT is about 6,475 dollars and Toronto’s MLTT is also about 6,475 dollars, for a combined 12,950 dollars before rebates. At 1,000,000 dollars, the combined total in Toronto is about 32,950 dollars, which is roughly double the provincial amount you would pay in the 905 at the same price point. Run your exact numbers with the Province’s LTT formula and the City’s MLTT tables or calculator for precision Ontario LTT and Toronto MLTT.
Moving Toronto To Durham Region
- Cash to close. Estimate provincial LTT using the Ontario formula. In Durham you avoid Toronto’s MLTT. Add legal, title, inspection, and moving costs.
- Net proceeds. Model your sale price, subtract estimated discharge and closing costs, and plan your deposit and bridge needs.
- Monthly carrying. Compare property taxes and commuting costs to your new workplace or GO line.
- Timing. If you need to buy first, line up bridge financing and a longer closing on the purchase so your sale can catch up.
Moving 905 To Downtown Toronto
- Cash to close. Add the City’s MLTT to the provincial LTT for your price point. Check eligibility for both first-time rebates if applicable provincial refund and Toronto rebate.
- Deposit strategy. Consider a larger deposit to strengthen your offer in competitive cores.
- Monthly carrying. Factor potential savings on transit and parking if you shift to TTC and walkability.
Upsizing Within Durham Or York
- Cash needed vs equity. Price the target home, subtract your estimated sale proceeds, and plug the gap with savings or a short-term bridge.
- Ownership cost step-up. Add property tax and utility increases for larger square footage.
- Contingencies. Use sale-of-buyer’s-property clauses only when market conditions support them, or sequence a sell-then-buy plan for certainty.
Selling Toronto, Buying In The 905
- Net proceeds. Model your Toronto sale with realistic pricing and a strong marketing plan so you can deploy equity efficiently.
- Suburban purchase. Use the Ontario LTT formula for closing funds and redirect MLTT savings to upgrades or a higher down payment.
- Sequencing. Consider selling first for clarity on proceeds, then negotiating a flexible closing date on your purchase to avoid storage and double moves.
Ways To Reduce Transaction Costs
Timing And Offer Strategy
- Align your sale and purchase closings to minimize overlap. Short overlap windows reduce duplicate carrying costs.
- Negotiate inclusions like appliances or minor repairs that would otherwise become out-of-pocket after closing.
- Be flexible on closing date. Sellers value certainty, and you may win on terms rather than price.
Financing, Porting, And Bridge Options
- Discuss mortgage portability and penalties early with your lender. Porting can save fees and rate risk if timelines line up.
- Price and plan for bridge financing if you buy first. A short bridge can remove pressure and prevent a rushed sale.
- Confirm appraisal timing and funds delivery to avoid last-minute delays.
Rebates, Incentives, And New Builds
- Claim both first-time buyer rebates if eligible. Coordinate with your lawyer so the credits apply at registration Ontario refund and Toronto rebate.
- Ask builders about closing credits or upgrades. Verify in writing and include them in your budget timeline.
- If you are a non-resident or a specific type of purchaser, confirm whether the provincial NRST and Toronto’s municipal surcharge apply so there are no surprises Ontario overview and City MLTT page.
Marketing Your Sale To Net More
- Staging, professional photography and video, and targeted digital promotion help maximize exposure and showing quality.
- Launch with a clear pricing strategy and a defined offer window where market conditions support it.
- Pre-list inspections and disclosure can improve buyer confidence and reduce conditional fallout.
Work With A Durham-Based Team
How We Price, Market, And Negotiate
We operate with a campaign mindset. That means data-backed pricing, staging guidance, professional photography and video, and targeted social distribution to reach the right buyers fast. On the buy side, we structure offers to balance certainty and value, and we keep timelines tight so you do not carry two homes longer than needed.
Relocation Support And Tight Timelines
We coordinate your sale and purchase so deposits, bridge financing, and closings flow cleanly. You get curated property previews, virtual tours, and fast access to new listings that fit your budget with or without Toronto’s MLTT.
What To Bring To A Consultation
- Your target price range and preferred neighbourhoods
- An estimate of your current mortgage, payout details, and any portability notes
- Your ideal move date and flexibility window
- Questions about taxes, rebates, or closing logistics so we can align professionals and calculators early
Choose The Move That Fits Your Budget
When you compare apples to apples, Toronto’s MLTT is a meaningful add to your cash to close, while 905 options often trade lower closing costs for different carrying and commute profiles. Use the Province’s formulas and the City’s MLTT tables or calculator to model your exact numbers, then map those figures against your lifestyle and timing. Ready to run the numbers on your home and shortlist? Get your free home valuation and book a planning session with the McDougall Team.
FAQs
How do Toronto and 905 land transfer taxes differ?
- In Toronto you pay both Ontario’s provincial LTT and the City’s MLTT at registration. In the 905 you pay only the provincial LTT. See the Province’s calculation rules and the City’s MLTT rates for details Ontario LTT and Toronto MLTT.
Do first-time buyers get help with these taxes?
- Yes. Ontario offers up to $4,000 back and Toronto offers up to $4,475 if you buy in the city and meet eligibility. You may receive up to $8,475 combined if you qualify for both Ontario refund and Toronto rebate.
Where can I calculate exact land transfer taxes?
- Use the Province’s formulas and the City’s calculator for Toronto purchases. Your lawyer will produce the final closing statement Ontario LTT formula and City MLTT calculator.
Are there extra taxes for non-residents or certain corporations?
- Ontario’s Non-Resident Speculation Tax is 25 percent province-wide, and Toronto has a 10 percent municipal surcharge. These are separate from LTT and MLTT. Confirm with your lawyer early Ontario overview and City MLTT info.
How do property taxes compare across municipalities?
- Each municipality sets its own rate and budget. In Toronto, check the current residential rate and recent increases, then compare against assessed values in your target area City tax rates.
Does the MLTT apply to condos the same way as houses?
- The City publishes different rate structures by property class. Review the MLTT tables that apply to your purchase type and confirm with your lawyer Toronto MLTT rates.
