By Mohsin Lakhani · Benson Crew Real Estate, REAL Broker Ontario Ltd., Brokerage
Buying in Toronto costs meaningfully more at closing than buying a comparable home in York Region, for one specific reason: Toronto charges a municipal land transfer tax on top of the provincial one, while York Region — including Markham, Vaughan, and Richmond Hill — charges only the provincial tax.
Every home purchase in Ontario is subject to a provincial land transfer tax. First-time buyers can claim a rebate of up to $4,000 against it. That part is the same everywhere in the province, including York Region.
Toronto is the only municipality in Ontario that layers on a second, municipal land transfer tax — with its own separate first-time buyer rebate of up to $4,475. Combined, a first-time buyer in Toronto can recover up to $8,475 — more than double the rebate available in York Region, but that's because they're also paying a tax York Region buyers simply don't have. See our full breakdown of the Toronto land transfer tax rebate →
For a first-time buyer, the practical effect is that closing costs on a comparably priced home run meaningfully higher in Toronto than in York Region, purely due to this second tax layer — separate from any difference in the purchase price itself.
For a seller relocating from Toronto to York Region (or the reverse), this is worth factoring into your overall math alongside the sale price and purchase price, since it affects your true net cost of moving, not just the price difference between the two homes.
If you're genuinely choosing between a home in Toronto and a comparable one in York Region — say, weighing South Etobicoke against Markham — the land transfer tax difference should be part of that comparison, not an afterthought discovered at your lawyer's office. It's a real, calculable number you can factor in before you're already committed to a specific offer.
Land transfer tax and its rebates apply to both new-construction and resale purchases — unlike GST/HST rebates, which are new-build only.
No — Toronto is currently the only municipality in Ontario that charges an additional municipal land transfer tax on top of the provincial one.
Your lawyer typically applies eligible rebates as part of your closing process — confirm this is being claimed on your behalf before closing.
This is specifically about land transfer tax — purchase prices, property taxes, and other costs vary independently and should be compared separately for any specific properties you're considering.
This post is provided for general informational purposes only and does not constitute legal or tax advice. Rebate figures are current as of July 2026 — confirm current amounts with your real estate lawyer.