Land Transfer Tax in Richmond Hill vs Toronto: What Move-Up Buyers Pay in 2026

One of the most common questions from families who are selling a Toronto home and buying north of Steeles is simple: do I pay double land transfer tax in Richmond Hill? The answer is no. Richmond Hill, Markham, Vaughan, Aurora, Newmarket, King and the other York Region municipalities do not have a municipal land transfer tax. Only the City of Toronto has the legal power to charge one, under the City of Toronto Act, 2006. So when you buy in Richmond Hill you pay Ontario's land transfer tax and nothing more.

That difference has always mattered, but in 2026 it became much larger at the top of the market, because Toronto introduced new graduated rates for high-value homes effective April 1, 2026. This post puts the two side by side. If you are a first-time buyer, our separate guide to the Ontario first-time buyer land transfer tax refund covers the $4,000 refund in detail.

The two taxes in plain terms

Ontario land transfer tax (everywhere in Ontario)

For agreements signed after November 14, 2016, Ontario charges 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% above $400,000, and 2.5% on the portion above $2,000,000 when the property has one or two single-family residences (ontario.ca, Calculating Land Transfer Tax (updated Apr 22, 2026; accessed Oct 2026)). Quick formulas from the Ministry: price × 2% − $3,525 between $400,000 and $2 million, and price × 2.5% − $13,525 above $2 million for a house.

Toronto Municipal Land Transfer Tax (Toronto only)

Toronto's MLTT mirrors the provincial brackets up to $3 million, then, for transfers registered on or after April 1, 2026, it steps up sharply for homes with one or two single-family residences (City of Toronto, MLTT rates and fees (accessed Oct 2026); City of Toronto By-law 132-2026 (enacted Feb 10, 2026)):

• 2.5% from $2 million to $3 million
• 4.4% from $3 million to $4 million
• 5.45% from $4 million to $5 million
• 6.5% from $5 million to $10 million
• 7.55% from $10 million to $20 million
• 8.6% above $20 million

Toronto also charges an MLTT administration fee ($102.56 plus HST per the City's fee table, accessed October 2026).

Side-by-side examples

These are illustrations for a resident buyer who is not a first-time buyer, buying a house (one single-family residence), with the deal registered after April 1, 2026. They use the published rates; your lawyer's statement of adjustments is the final word.

How the $3.5 million Toronto figure is built: Ontario LTT is $3.5M × 2.5% − $13,525 = $73,975. Toronto MLTT is $36,475 on the first $2 million, plus $25,000 (2.5% of the next $1 million), plus $22,000 (4.4% of the last $500,000), or $83,475. Combined, about $157,450 before the admin fee.

What this means if you are moving from Toronto to Richmond Hill

For a family selling a Toronto semi and buying a $2 million detached home in Richmond Hill, the tax saved compared with buying the same-priced home in Toronto is about $36,475. That is cash at closing, not a monthly figure, and it is money that would otherwise not be financeable with an insured mortgage. It is one reason many move-up buyers look at Oak Ridges, Bayview Hill or Jefferson rather than an equivalent Toronto neighbourhood. Land transfer tax is only one input, of course. Property taxes, commute and schools all matter, and our York Region neighbourhood comparison is a good next read. For one city's property tax picture, see Vaughan property taxes and closing costs.

Keep in mind that the tax applies to where the property is, not where you live now. Selling in Toronto does not trigger MLTT for the seller; land transfer tax is paid by the buyer.

Foreign buyers: two separate speculation taxes

Buyers who are not Canadian citizens or permanent residents face Ontario's Non-Resident Speculation Tax (NRST), 25% province-wide since October 25, 2022 (ontario.ca, Calculating Land Transfer Tax (updated Apr 22, 2026; accessed Oct 2026)), on top of regular LTT. Toronto added its own Municipal Non-Resident Speculation Tax of 10% from January 1, 2025. There are also federal restrictions on non-Canadians buying residential property, with exemptions. These rules are complex and change often; get legal advice before making any offer if you are not a citizen or PR.

Things that do not change between the two cities

• The tax base. Both taxes are calculated on the value of the consideration, which includes upgrades and assumed liabilities but excludes HST on a new home.
• When it is paid. On closing, through your lawyer, as part of electronic registration.
• Who pays. The buyer, unless the contract says otherwise (rare in resale).
• First-time refunds. Ontario's refund of up to $4,000 applies in both places; Toronto adds its own first-time rebate of up to $4,475 against MLTT.

Budgeting tips for move-up buyers

1. Run the tax for the top of your price range, not the middle. Above $2 million the provincial marginal rate is 2.5%, so every extra $100,000 adds $2,500.
2. Remember upgrades on a new build are part of the price for LTT purposes.
3. If you are buying before you sell, the tax is due on the purchase closing, which may be before your sale proceeds arrive. Plan bridge financing with your lender.
4. Ask your lawyer for a draft statement of adjustments a week before closing so there are no surprises.

Frequently asked questions

Does Richmond Hill have a municipal land transfer tax?

No. Richmond Hill and the other York Region municipalities do not charge a municipal land transfer tax. Buyers pay only Ontario's provincial land transfer tax.

Which Ontario city charges a municipal land transfer tax?

The City of Toronto is the only Ontario municipality that charges a municipal land transfer tax, under authority from the City of Toronto Act, 2006.

What changed in Toronto's land transfer tax on April 1, 2026?

Toronto introduced graduated municipal rates for homes with one or two single-family residences: 4.4% from $3 million to $4 million, rising in steps to 8.6% above $20 million.

How much land transfer tax is due on a $2 million house in Richmond Hill?

Using Ontario's formula (price × 2% − $3,525), about $36,475 for a buyer who is not claiming the first-time refund. The same price in Toronto would add roughly another $36,475 in municipal tax.

If you would like to go through closing costs in Farsi, a Persian-speaking realtor in Richmond Hill can walk you through each line before you sign.

General information only, not legal, tax or financial advice. Figures were checked against the sources linked above in October 2026 and can change; confirm your own numbers with your real estate lawyer, accountant or lender before you sign anything.

Farshad Fazaeli, Salesperson, International Realty Firm, Inc., Brokerage, 647-667-5555 · Richmond Hill, ON