Luxury Homes in Toronto: The Numbers That Change Above $3 Million

Three thresholds that decide the budget

The figures that move a top end Toronto budget by six digits come from three rules.

$1.5 million. From this purchase price the minimum down payment is 20 percent and insured mortgages are off the table.

$3 million. Above this price the City of Toronto’s municipal land transfer tax rises in steps that, since April 1, 2026, reach 8.60 percent at the very top.

Any price, for a foreign buyer. Ontario’s 25 percent non-resident speculation tax and Toronto’s 10 percent municipal version both apply regardless of value.

Two land transfer taxes on one purchase

Ontario charges land transfer tax on property anywhere in the province. The City of Toronto has also charged its own municipal land transfer tax on purchases in the city since February 1, 2008, in addition to the provincial tax.

Up to $3,000,000 the brackets are the same for both, on a home with one or two single family residences:

Portion of the price	Ontario	City of Toronto
Up to $55,000	0.5 percent	0.5 percent
$55,000 to $250,000	1.0 percent	1.0 percent
$250,000 to $400,000	1.5 percent	1.5 percent
$400,000 to $2,000,000	2.0 percent	2.0 percent
$2,000,000 to $3,000,000	2.5 percent	2.5 percent
$3,000,000 to $4,000,000	2.5 percent	4.40 percent
$4,000,000 to $5,000,000	2.5 percent	5.45 percent
$5,000,000 to $10,000,000	2.5 percent	6.50 percent
$10,000,000 to $20,000,000	2.5 percent	7.55 percent
Over $20,000,000	2.5 percent	8.60 percent

City Council passed these rates on December 17, 2025, effective April 1, 2026. From January 1, 2024 to March 31, 2026 the City’s tiers above $3,000,000 ran from 3.5 percent to 7.5 percent.

The condition in the heading row matters. Both the provincial 2.5 percent band and the City’s upper tiers apply only where the land contains at least one and not more than two single family residences. For every other property the City’s rate stays at 2.0 percent above $400,000.

Worked examples at Toronto price points

These are illustrative figures calculated from the published brackets, for a home with one or two single family residences and no exemption. Your lawyer produces the final numbers.

Purchase price	Ontario tax	Toronto tax	Total
$2,500,000	$48,975	$48,975	$97,950
$3,000,000	$61,475	$61,475	$122,950
$3,500,000	$73,975	$83,475	$157,450
$5,000,000	$111,475	$159,975	$271,450

At $3,500,000 the City’s tax is $61,475 on the first $3,000,000 plus $22,000 on the next $500,000 at 4.40 percent. At the old 3.5 percent it would have been $78,975, so the April change added $4,500 here and $18,500 at $5,000,000.

Our land transfer tax calculator runs both taxes at any price. Our post on land transfer tax in Toronto covers the rest.

Financing at 20 percent down

Federal rules set the minimum down payment at 20 percent of the purchase price for homes of $1.5 million or more. That is also the insured mortgage price cap, raised from $1 million to $1.5 million on December 15, 2024. Above it, every mortgage is conventional.

On a $3,000,000 purchase the floor is $600,000, plus $122,950 in combined land transfer tax and closing costs. Two points follow:

• Start with the lender before the house. Large approvals need more documents. Self employed, corporate or foreign income takes longer to verify.
• Keep the tax money separate from the down payment. Both land transfer taxes are payable when the transfer is registered on closing, so the funds need to be in place with your lawyer by then.

Our mortgage calculator gives a first read on payments. A mortgage professional confirms the rest.

Buyers who are not Canadian citizens or permanent residents

Ontario’s non-resident speculation tax has been 25 percent since October 25, 2022 and applies to residential property anywhere in the province. It is charged on the full value of the consideration where any buyer is a foreign national, foreign corporation or taxable trustee. Ontario’s own example shows it is not prorated to the foreign buyer’s share.

Toronto adds a 10 percent municipal non-resident speculation tax on certain residential properties from January 1, 2025, on top of its land transfer tax. Exemptions exist in narrow cases, so have a lawyer review the purchase structure before you sign.

What detached homes sold for, April to June 2026

TRREB’s community reports publish prices by property type, rounded to the nearest thousand dollars. Detached medians for the second quarter of 2026:

TRREB community	Detached sales	Detached median
Bridle Path-Sunnybrook-York Mills	22	about $4,453,000
Lawrence Park South	52	about $2,728,000
Leaside	41	about $2,500,000
North Riverdale	8	about $2,400,000
Banbury-Don Mills	27	about $2,398,000
Bayview Village	19	about $2,380,000
The Beaches	32	about $2,368,000
Lawrence Park North	40	about $2,091,000
Annex	8	about $1,950,000

For scale, the whole city recorded 550 detached sales in August 2026 at a median of $1,170,000. Rows with eight sales can swing on a single house.

Our neighbourhood guides to Lawrence Park, Leaside, the Annex and the Beaches describe the housing stock and transit in each. If you are choosing between the first two, see Leaside vs Lawrence Park.

How a sale changes at this level

The buyer pool is what changes. A home priced at three or four times the city’s detached median is waiting for one of a few households able to close, who arrive on their own schedule. That shapes the approach:

Allow for time. A slow first few weeks is a normal feature of a thin market. Reducing the price before the likely buyers have had a full chance to see the house tends to cost more than patience does.

Price from sales that truly compare. Where few similar homes have sold, we show the evidence as it stands and say plainly when it is thin.

Prepare with purpose. We agree before listing which work a buyer at this price will notice.

Choose the exposure on purpose. A quiet approach protects privacy and reaches fewer buyers. A full listing does the reverse. The seller makes that call.

How we work with you

Sellers get the value the comparable sales support, even when it sits below the hoped for figure, with a written plan for exposure and timing. A home valuation is the usual start.

Buyers get the combined land transfer tax, the 20 percent floor and any non-resident tax laid out before an offer rather than after it. That first conversation is free and carries no obligation.