How Much Land Transfer Tax You Pay on a Markham Home

The short answer

Land transfer tax in Markham means Ontario’s provincial land transfer tax. The City of Toronto charges its own municipal land transfer tax on top of the provincial one, but that tax applies to properties purchased in Toronto. Ontario’s land transfer tax guide mentions no municipal land transfer tax other than Toronto’s, so a Markham purchase is taxed at the provincial rates.

It is still one of the largest costs of buying and it is due on closing day. At the Markham median price for August 2026, the tax is $18,375 before any first-time buyer refund.

This post explains the rates, works through the tax at recent Markham prices, covers the first-time homebuyer refund and shows what the same purchases would cost in Toronto. The figures are general information. Your real estate lawyer confirms the exact amount for your transaction.

Ontario land transfer tax rates in 2026

Ontario charges land transfer tax in tiers, like income tax. Each rate applies only to the part of the price that falls inside its band. These rates apply where the agreement of purchase and sale was signed after November 14, 2016 and the transfer is registered on or after January 1, 2017. They are the rates the province lists today.

Portion of the price	Rate
Up to and including $55,000	0.5%
Over $55,000 up to and including $250,000	1.0%
Over $250,000 up to and including $400,000	1.5%
Over $400,000	2.0%
Over $2,000,000, where the land contains one or two single family residences	2.5%

Because the first three bands are fixed, the tax on the first $400,000 of any purchase is always the same: $275 plus $1,950 plus $2,250, which is $4,475. Ontario uses that same $400,000 example on its calculating land transfer tax page.

For a home between $400,000 and $2,000,000 the shortcut is simple: take $4,475 and add 2% of everything above $400,000.

What the tax is charged on

The tax is calculated on the “value of the consideration”. Ontario says the tax is normally based on the amount paid for the land plus the amount remaining on any mortgage or debt the buyer assumes, so for a typical resale purchase it is essentially the price you pay. For a new home, Ontario counts soft costs and the cost of upgrades in that value. Where HST applies to a purchase, the HST paid on the purchase price is not included in the value.

Land transfer tax at typical Markham prices

The table below uses median prices TRREB recorded for the City of Markham in August 2026. A median is the middle sale, so half of the homes of that type sold for more and half for less. The last row is a round illustrative price to show how the 2.5% band works.

Home (TRREB, Markham, August 2026)	Median price	Ontario land transfer tax
Condo apartment	$563,800	$7,751
Semi-detached	$945,000	$15,375
Freehold townhouse	$995,000	$16,375
All property types	$1,095,000	$18,375
Detached	$1,488,000	$26,235
Example only, detached house	$2,500,000	$48,975

A worked example

Here is the calculation for the all property types median of $1,095,000:

1. First $55,000 at 0.5%: $275
2. Next $195,000, up to $250,000, at 1.0%: $1,950
3. Next $150,000, up to $400,000, at 1.5%: $2,250
4. Remaining $695,000 at 2.0%: $13,900
5. Total: $18,375

At $2,500,000 the first $2,000,000 produces $36,475 and the last $500,000 is taxed at 2.5%, adding $12,500 for a total of $48,975.

For the full breakdown of Markham prices by property type and neighbourhood, see our August 2026 Markham market report.

The first-time homebuyer refund

Ontario refunds some or all of the land transfer tax for first-time buyers. Since January 1, 2017 the maximum refund is $4,000. In the province’s words, a qualifying buyer pays no land transfer tax on the first $368,000 of the price. Above that, you pay the difference.

Median price (Markham, August 2026)	Ontario tax	Less maximum refund	First-time buyer pays
$563,800	$7,751	$4,000	$3,751
$945,000	$15,375	$4,000	$11,375
$995,000	$16,375	$4,000	$12,375
$1,095,000	$18,375	$4,000	$14,375
$1,488,000	$26,235	$4,000	$22,235

Who qualifies

Every purchaser claiming the refund must meet all of these conditions:

• be at least 18 years old
• occupy the home as their principal residence within nine months of the date of transfer
• never have owned a home or an interest in a home anywhere in the world at any time, however it was acquired (including by gift or inheritance)
• have a spouse who did not own a home while they were the purchaser’s spouse
• be a Canadian citizen or permanent resident of Canada

A buyer who otherwise qualifies but is not a citizen or permanent resident when the deal closes has 18 months following registration to become eligible. The refund covers newly built and resale homes, including detached and semi-detached houses, townhouses and condominium units.

Buying with someone who does not qualify

If one purchaser is not a first-time buyer, the refund is reduced in proportion to the interest held by the people who do qualify. Ontario’s own example is a parent and child buying with equal interests: the child can claim 50% of the refund, which caps it at $2,000.

The same rule matters for couples. If your spouse owned a home before you were together but not during your relationship, you may still qualify, but confirm the details with your lawyer before you sign.

If you are also using an FHSA or the RRSP Home Buyers’ Plan for your down payment, our guide to the FHSA and the Home Buyers’ Plan explains how those federal programmes work. Our first time home buyer guide for Markham covers the rest of the process.

Markham compared with Toronto

The City of Toronto has charged a Municipal Land Transfer Tax since February 1, 2008, on purchases of property in the City of Toronto and in addition to the provincial tax, as a taxation measure granted under the City of Toronto Act, 2006. Ontario’s land transfer tax guide mentions no similar tax for any other municipality, which is why the border between the two cities makes such a difference to closing costs.

For homes with one or two single family residences, Toronto’s rates from April 1, 2026 match the provincial bands up to $3,000,000: 0.5%, 1.0%, 1.5%, then 2.0% up to $2,000,000 and 2.5% from $2,000,000 to $3,000,000. Higher graduated rates apply above $3,000,000. Up to that point a Toronto buyer pays the provincial tax twice over.

Purchase price	Markham total	Toronto total (provincial plus municipal)	Extra in Toronto
$563,800	$7,751	$15,502	$7,751
$945,000	$15,375	$30,750	$15,375
$1,095,000	$18,375	$36,750	$18,375
$1,488,000	$26,235	$52,470	$26,235
$2,500,000	$48,975	$97,950	$48,975

These totals are for a buyer who is not a first-time buyer. Toronto has its own first-time purchaser rebate on the municipal tax, which the City of Toronto lists at up to $4,475, with its own eligibility rules. An eligible first-time buyer comparing the two cities should check the City of Toronto’s rebate page and ask a lawyer to confirm the gap for their own purchase.

When and how land transfer tax is paid

Ontario’s land transfer tax is payable when the transfer is registered, which is part of closing. Registration is done electronically through Teraview, Ontario’s electronic land registration system, which includes the provincial land transfer tax statements. Your real estate lawyer prepares and registers the transfer, so in practice the tax is part of the closing funds you arrange with your lawyer.

A few practical points follow from that:

• Plan for the tax alongside your down payment, legal fees and closing adjustments.
• The first-time refund can be claimed at registration through the electronic statements, which means you never pay that part. Give your lawyer the information they need to make the claim.
• If the refund is not claimed at registration, you can apply to the Ministry of Finance, but the request must be made within 18 months after the date of the transfer.
• If the transfer is not registered within 30 days of closing, a separate return and payment to the Ministry of Finance are due within 30 days after closing. This is unusual for an ordinary purchase.

For a full list of what else you pay on closing day, read our guide to closing costs when buying a home in Markham. Once you own, the recurring cost is property tax, which we cover in Markham property tax explained.

Land transfer tax applies to the new purchase even when the buyer is downsizing out of a larger, longtime home rather than buying up, so build the tax into the budget alongside the proceeds from your sale. Our downsizing in Markham guide covers the rest of that move.

Other rules worth knowing

Buyers who are not Canadian citizens or permanent residents may also owe Ontario’s Non-Resident Speculation Tax, which the province raised to 25 per cent effective October 25, 2022. Ask a lawyer whether it applies to you before you make an offer.

HST applies to newly constructed or substantially renovated homes but not to resale homes. If you are buying new, the HST paid on the price is left out of the value for land transfer tax, while upgrades are included. Our new construction guide explains what a builder contract commits you to.

Ontario and the City of Toronto can change their rates and rules. Everything in this post reflects the Ontario and City of Toronto pages as we read them on September 17, 2026.

What to do before you make an offer

1. Work out the tax at your target price using the $4,475 plus 2% shortcut and add it to your cash budget.
2. If you think you are a first-time buyer, check every condition above for yourself and anyone buying with you, including a spouse.
3. Ask your lawyer to confirm the tax, the refund and the closing funds figure well before closing.
4. If you are deciding between Markham and a Toronto address, include the municipal land transfer tax in the comparison. Our buyer page explains how we work with buyers in Markham.

Nothing here is legal or tax advice for your situation, so confirm the numbers for your own purchase with a real estate lawyer. If you would like to talk through what a Markham purchase would cost you in total, contact us.