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Toronto has no city income tax, but three local taxes shape what owners pay in 2026: property tax at a total residential rate of 0.767311%, the 3% Vacant Home Tax unless you declare occupancy by April 30, 2027, and a municipal land transfer tax on top of Ontario's, with steeper bands above $3 million since April 1, 2026.
What taxes do people in Toronto pay?
Income tax in Toronto is the same as elsewhere in Ontario. You pay federal and Ontario tax, collected by the CRA, and nothing extra to the city. Our Toronto income tax guide and the Ontario tax page cover the brackets. Sales tax is 13% HST, which is 5% federal GST plus 8% Ontario. See sales tax in Toronto.
The taxes that belong to the city are property tax, the Vacant Home Tax, the municipal land transfer tax when you buy, and the municipal accommodation tax on short stays. The rest of this page takes them one at a time, with the City of Toronto's own figures and the month we checked them.
How much is Toronto property tax in 2026?
The City's rates page lists the 2026 residential rate as the sum of three parts. Your bill is the Current Value Assessment (CVA) from MPAC multiplied by the total.
| Part of the 2026 residential rate | Rate |
|---|---|
| City tax rate | 0.605295% |
| Education tax rate | 0.153000% |
| City Building Fund | 0.009016% |
| Total | 0.767311% |
The City's own example is a home assessed at $692,140, which gives about $5,311 a year. At $500,000 of assessment the bill is $3,837, and at $1,000,000 it is $7,673 (our arithmetic on the City's total rate). Council approved the 2026 budget on February 10, 2026, with a residential increase of 2.2%, made up of 0.7% for the operating levy and 1.5% for the City Building Fund. The City puts that at $91.53 a year for the average assessed home.
MPAC assessments run behind market values, so your CVA is not what the house would sell for. For a rough check on your own number, use the property tax calculator or read our guide to how a Toronto bill adds up.
When is Toronto property tax due in 2026?
The City sends two bills a year, an interim bill in January and a final bill in May. The regular instalment dates for 2026 are below.
| Bill | Due dates in 2026 |
|---|---|
| Interim | March 2, April 1, May 1 |
| Final | July 2, August 4, September 1 |
The City also runs a pre-authorized tax payment plan with 2, 6 or 11 instalments. The 11 instalment plan collects on February 17, March 16, April 15, May 15 and June 15 for the interim part, then July 15, August 17, September 15, October 15, November 16 and December 15 for the final part. The Property Tax Lookup on toronto.ca shows your balance and payments. For late costs and other ways to pay, see how to pay property tax.
What is the Toronto Vacant Home Tax?
It is a yearly tax of 3% of a property's CVA on homes the City treats as vacant. On a home assessed at $500,000 that is $15,000. Every owner of a residential property must declare occupancy, including people who live in the house. If you do not declare by the deadline, the City assumes the property was vacant and bills you.
For the 2026 occupancy year the City says to declare by April 30, 2027. A false declaration can bring a fine of up to $10,000 plus the tax owing. Late payment carries a 1.25% penalty on the first day, then 1.25% interest on the first day of each later month.
The City lists these exemptions, and you still have to declare to claim them: death of a registered owner, a principal resident in a care facility, major repairs or renovations, a transfer of ownership in the tax year, full-time work in Toronto with a principal residence outside the GTA, a court order that blocks occupancy, rental or sale, vacant new inventory, and a secondary residence for medical reasons from 2024. Our Vacant Home Tax guide goes deeper.
How much is land transfer tax in Toronto?
A buyer in Toronto pays two taxes at closing: Ontario's land transfer tax and the City's municipal land transfer tax (MLTT). The seller does not pay either. Both use marginal bands like income tax brackets. Ontario's bands are 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million and 2.5% above that.
City Council amended the MLTT on December 17, 2025, and the new high-value bands took effect on April 1, 2026. The City's rates page for homes with one or two single-family residences lists these bands.
| Value of the home | MLTT rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
Take a $1,000,000 home. The MLTT is $16,475 and Ontario's tax is also $16,475, so the two come to $32,950. On a $3,500,000 purchase the MLTT is $83,475 under the new bands and Ontario's tax is $73,975 (our arithmetic on the published bands). Use the land transfer tax calculator for your own price, and see land transfer tax by province for comparison. Foreign buyers also face Ontario's non-resident speculation tax.
What is the first-time buyer rebate in Toronto?
Ontario refunds up to $4,000 of its tax to eligible first-time buyers, and Toronto rebates up to $4,475 of the MLTT. Ontario's page says no tax is payable on the first $368,000 of an eligible home. The City's rebate covers all of the MLTT on a home up to $400,000.
Both programs need you to be at least 18, to be a Canadian citizen or permanent resident, to have never owned a home anywhere in the world, with the same rule for your spouse, and to live in the home as your principal residence within nine months. If the rebate was not claimed at registration, you have 18 months from the transfer date to apply. Our Ontario first-time buyer guide has the federal side.
What does Toronto charge for short stays?
The City's page says the municipal accommodation tax on transient stays is 6%. A temporary 8.5% rate ran from June 1, 2025 and ended on August 1, 2026. Some City pages for short-term rentals may still show the old rate, so confirm with the City before you file. If you host, our Airbnb taxes guide covers income tax and GST/HST.
How is a Toronto property tax bill worked out?
The Toronto property tax bill starts with the property assessment, the Current Value Assessment (CVA) set by MPAC. The City multiplies it by the total residential tax rate of 0.767311%, which joins the city tax rate, the education tax rate and the City Building Fund. The result is the annual property tax, and the City splits it across the interim and final bills.
If your assessment is $800,000, the 2026 property tax is about $6,138 (our arithmetic on the City's total rate). Compare the CVA on your own notice with the figures above before you work out the tax bill, and take any question about the assessment to MPAC and any question about the bill to the City of Toronto.
Where can you check your Toronto bill or get help?
Use the City's Property Tax Lookup with your roll number and client details from a bill, or call 311. The CRA runs its own services separately from the City, and Revenue Services at the City handles property tax and the Vacant Home Tax, as our page on Toronto Revenue Services explains. Our note on the CRA office in Toronto explains how to reach the CRA. If you want a preparer for your income tax return, our Toronto tax preparer guide explains what to ask. We do not rank or recommend firms.
Where we checked
We checked the City of Toronto pages on property tax rates, due dates, the Vacant Home Tax, MLTT rates, MLTT rebates, the municipal accommodation tax and the 2026 budget release, plus Ontario's pages on calculating land transfer tax and first-time buyer refunds, in November 2026. The examples are our own arithmetic. Rates and dates change, so confirm them on the City site before you pay or sign.
Frequently asked questions
How is Toronto property tax calculated for 2026?
Your bill is your Current Value Assessment from MPAC multiplied by the 2026 total residential rate of 0.767311%, which is the city rate of 0.605295%, the education rate of 0.153000% and the City Building Fund of 0.009016%. The City's example of a $692,140 home gives about $5,311 a year.
What are the 2026 property tax due dates in Toronto?
For regular instalments the interim bill is due March 2, April 1 and May 1, and the final bill is due July 2, August 4 and September 1. The City also offers pre-authorized plans with 2, 6 or 11 instalments. Late payments add penalties, so check the City's due dates page.
What is the deadline for the Vacant Home Tax declaration?
The City says to declare your property's 2026 occupancy status by April 30, 2027. Every residential owner must declare, including owners who live in the home. Without a declaration the City assumes the property was vacant and sends a bill for 3% of its assessed value.
What is the penalty for a false Vacant Home Tax declaration?
The City says a false declaration, or failing to provide requested information, may bring a fine of up to $10,000 plus any tax owing. The tax is 3% of the Current Value Assessment, and late payment adds a 1.25% penalty on day one and 1.25% interest each later month.
Did land transfer tax change in Toronto in 2026?
Yes for high-value homes. Council approved new municipal bands on December 17, 2025, effective April 1, 2026. The rate is 4.40% from $3 million to $4 million, 5.45% to $5 million, 6.50% to $10 million, 7.55% to $20 million and 8.60% above that. The lower bands are in the table above.
How much can a first-time buyer get back on land transfer tax?
Ontario refunds up to $4,000 and Toronto rebates up to $4,475 of its municipal tax. You must never have owned a home anywhere in the world, and the same goes for your spouse. You must live in the home within nine months and apply within 18 months if it was not claimed at registration.