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Land transfer tax is one of the biggest closing costs buyers forget to budget for. The good news in Mississauga: you pay only the Ontario tax. The extra municipal land transfer tax applies in the City of Toronto, not in Mississauga.
The Ontario rates
For a home with one or two single-family residences, Ontario charges:
| Part of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Each rate applies only to the part of the price inside that band, like income tax.
Worked example: a $1,000,000 home
- First $55,000 at 0.5% = $275
- Next $195,000 at 1.0% = $1,950
- Next $150,000 at 1.5% = $2,250
- Next $600,000 at 2.0% = $12,000
- Total: $16,475
A first-time buyer can get up to $4,000 of that refunded, bringing it to $12,475.
When do you pay it?
On closing day. Your real estate lawyer collects it with your other closing funds and pays it when the deed is registered. Plan for it on top of your down payment, because it can’t be added to your mortgage.
Other closing costs to budget for
- Legal fees and title insurance
- Home inspection
- Property tax and utility adjustments
- Moving costs
This is general information. Your lawyer will confirm the exact amount for your purchase.
Want a full picture of what your purchase will cost? Book a buyer consultation and I’ll walk you through every closing cost before you make an offer.
