Buying in Forest Hill and planning your next move? Toronto’s land transfer taxes can add up fast, especially on multi‑million‑dollar homes. You want a clear picture before you write an offer, so there are no surprises on closing day. In this guide, you’ll learn how Ontario’s provincial tax and Toronto’s municipal tax work, what rates apply in Forest Hill, and what to budget with real examples. Let’s dive in.
Land transfer tax basics
Land transfer tax is a one‑time tax you pay when you buy property in Ontario. In Toronto, you pay two versions of the same tax: the provincial Land Transfer Tax (LTT) and the City of Toronto’s Municipal Land Transfer Tax (MLTT). If you buy in Forest Hill, both apply.
The taxes are calculated using marginal brackets. Each portion of the price is taxed at a different rate, and the results are added up. Your lawyer typically calculates and pays the taxes from your closing funds.
For program details and definitions, review the official Ontario Land Transfer Tax page and the City of Toronto land transfer tax page.
Toronto and Ontario rates
Both Ontario LTT and Toronto MLTT use the same bracket schedule for residential purchases:
- 0.5% on the first $55,000
- 1.0% on the portion from $55,000 to $250,000
- 1.5% on the portion from $250,000 to $400,000
- 2.0% on the portion from $400,000 to $2,000,000
- 2.5% on the portion above $2,000,000
You calculate the provincial LTT, calculate the municipal MLTT separately using the same brackets, then add them together. Because homes in Forest Hill often exceed $2 million, the 2.5% marginal rate frequently applies to the portion above that threshold on both taxes.
Who pays and when
You, the purchaser, are responsible for both taxes. Your lawyer handles the paperwork and payment. The full amount is usually due at closing from your available funds. If you are arranging financing, confirm with your lender whether LTT can be financed or must be paid separately from your down payment. Many lenders require you to cover LTT from your own closing funds.
Rebates and exemptions
First‑time home buyer relief exists at both the provincial and municipal levels. Eligibility and maximums differ, and amounts can change. Review the latest rules on the Ontario Land Transfer Tax page and the City of Toronto land transfer tax page, and ask your lawyer to confirm your eligibility.
Other exemptions can apply in specific cases, such as certain family transfers. Always confirm with your real‑estate lawyer before you rely on any exemption.
NRST and HST basics
- Non‑Resident Speculation Tax (NRST): Purchases by certain non‑residents may be subject to an additional provincial tax, separate from LTT and MLTT. Rules and percentages change, so check the NRST guidance linked from the Ontario Land Transfer Tax page before budgeting.
- HST/GST: These are separate from land transfer taxes. HST generally applies to new or substantially renovated homes sold by a builder, while resale homes are typically exempt. For details on HST, review the Canada Revenue Agency GST/HST information and speak with your lawyer and tax adviser.
Forest Hill price examples
Below are illustrative calculations for common Forest Hill price points. They assume no rebates or exemptions. Calculations are rounded to the nearest dollar.
Example at $2,000,000
- Ontario LTT:
- 0.5% × $55,000 = $275
- 1.0% × $195,000 = $1,950
- 1.5% × $150,000 = $2,250
- 2.0% × $1,600,000 = $32,000
- Ontario LTT total = $36,475
- Toronto MLTT = $36,475
- Combined LTT = $72,950
- Share of purchase price ≈ 3.65%
Example at $3,000,000
- Ontario LTT:
- Base up to $2,000,000 = $36,475
- 2.5% × $1,000,000 = $25,000
- Ontario LTT total = $61,475
- Toronto MLTT = $61,475
- Combined LTT = $122,950
- Share of purchase price ≈ 4.10%
Example at $5,000,000
- Ontario LTT:
- Base up to $2,000,000 = $36,475
- 2.5% × $3,000,000 = $75,000
- Ontario LTT total = $111,475
- Toronto MLTT = $111,475
- Combined LTT = $222,950
- Share of purchase price ≈ 4.46%
Example at $1,500,000
- Ontario LTT:
- Base up to $400,000 = $4,475
- 2.0% × $1,100,000 = $22,000
- Ontario LTT total = $26,475
- Toronto MLTT = $26,475
- Combined LTT = $52,950
- Share of purchase price ≈ 3.53%
Budget and closing checklist
Use this quick list to avoid surprises when you buy in Forest Hill:
- Confirm purchase type: resale or new construction. For new homes, discuss HST with your lawyer and tax adviser. LTT and HST are separate.
- Plan for LTT at closing. Clarify with your lender whether LTT must be paid from your own funds.
- Coordinate with your lawyer early. Share the purchase price and identification so your lawyer can prepare LTT returns and any rebate affidavits.
- Gather documents for rebates if you qualify as a first‑time buyer.
- Include other closing costs in your budget:
- Legal fees and disbursements
- Title insurance
- Adjustments for property taxes and utilities
- Survey, if required
- Home inspection and appraisals, if ordered
Forest Hill is a premier Toronto neighbourhood with many transactions above $2 million, so the combined LTT can reach five or even six figures. Planning ahead ensures your closing funds are ready and your timeline stays on track.
Work with a local team
When you are buying in Forest Hill, you want a partner who understands both the neighbourhood and the fine print. Our team helps you price closing costs accurately, prepare timelines with your lawyer and lender, and position your offer with confidence. If you are exploring a move in Midtown or Uptown, connect with Adam Weiner + Associates for a concierge consultation tailored to your goals.
FAQs
What is land transfer tax in Toronto?
- It is a one‑time tax paid by buyers, consisting of Ontario’s provincial LTT plus Toronto’s municipal LTT, both calculated with the same marginal rate brackets.
How much LTT on a $3M Forest Hill home?
- Using the standard brackets and no rebates, the combined LTT is about $122,950, or roughly 4.10% of a $3,000,000 purchase.
When do I pay the LTT and MLTT?
- Your lawyer pays both at closing from your funds, so you need the money available when the transaction completes.
Are first‑time buyer rebates available in Toronto?
- Yes, both the province and the City of Toronto offer relief with different rules and maximums; review the official pages and confirm eligibility with your lawyer.
Does the NRST apply to foreign buyers in Forest Hill?
- It may apply based on residency status and current policy; check the NRST guidance linked from the Ontario LTT page and confirm with your lawyer before budgeting.
Does HST apply to my Forest Hill purchase?
- HST generally applies to new or substantially renovated homes from a builder, while resale homes are typically exempt; review CRA guidance and confirm with your lawyer and tax adviser.
