Toronto Closing Day | Taxes, Utilities and What to Expect

by Jonathan Colford

Toronto Buyer and Seller Guide

Closing a Home Purchase or Sale in Toronto: Taxes, Utilities and What to Expect

The steps of closing are the same across Ontario, but Toronto adds a few of its own: a municipal land transfer tax, a lawyer letter to change tax ownership, a four month utility bill cycle and the Vacant Home Tax. Here is what to plan for.

Local insight from Jonathan Colford, York Region Real Estate Agent.

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Closing day in Toronto follows the same Ontario process as everywhere else: your lawyers register the transfer, the money moves and the keys change hands. What changes is the paperwork around it. The City has its own rules for updating tax and utility accounts, and Toronto buyers pay a second land transfer tax. This guide covers what is specific to the city.

What Is Different in Toronto

Item	Toronto	York Region towns
Land transfer tax	Ontario tax plus a municipal tax	Ontario tax. Ontario's guide refers to a municipal tax only for Toronto
Tax ownership change	Lawyer letter to the City, then an ownership change fee	Ask your town's tax office
Utility bill	Water and solid waste, billed three times a year	Check your town's billing schedule
Vacant Home Tax	Annual declaration for Toronto homes	Check with your town

The municipal land transfer tax is covered in the Toronto land transfer tax guide, and the Ontario portion is in our Ontario land transfer tax guide. Build both into your closing budget before you make an offer.

If You Are Buying

Updating Tax and Utility Accounts

The City says you cannot change tax ownership through its online tool. It is done with a lawyer's letter that includes the new and previous owners' names, the property address, the assessment roll number, the new owner's mailing address and the closing date. The City then mails a Property Tax Account Statement that includes an ownership change fee. Your lawyer normally handles this, so ask them to confirm it is part of your file.

Ask About a Tax and Utility Certificate

Your lawyer can order a certificate that shows the current status of the tax and utility accounts and the upcoming due dates. This matters because a new owner who does not know about an upcoming instalment can still be charged penalty and interest if payment is late.

What You Actually Owe

The City points buyers to the statement of adjustments in the purchase documents to see what is owed for the year in property taxes. Read it when your lawyer sends it, and check that the figures match your agreement.

Update Your Banking

The assessment roll number and the utility account number belong to the property, not the person. If you pay online or by pre authorized payment from a previous home, update the account numbers so your payments are not applied to a property you no longer own. Pre authorized enrolment does not transfer to another property.

The Utility Bill

Most homeowners receive a utility bill covering water, wastewater and solid waste on a four month cycle, three times a year. Solid waste charges are based on the bin sizes at the property at the time of sale and stay with the property unless the new owner asks for a change. When your first bill arrives, compare the numbers on your bins with the bill and call 311 if they do not match. For help with the costs around your purchase, see our guide to closing costs and rebates for first time buyers.

If You Are Selling

Request a Final Meter Read

If you will no longer own the property, you need to finalize your utility account. Contact the City with your property address, utility account number, the closing date, a forwarding address for the final bill and a phone number. The final bill includes a special read fee. A final read also cancels your pre authorized utility payment enrolment, so plan to pay the last bill another way.

Cancel Pre Authorized Tax Payments in Writing

The City requires written notice to cancel pre authorized property tax payments when you sell. Enrolment does not move to your next home.

Still Receiving Bills After Closing

If a tax bill arrives for a home you no longer own, return it to the City with the ownership information your lawyer would normally supply. Your seller costs are broken down in our seller closing costs guide, and if you are also buying, see whether to buy first or sell first.

The Vacant Home Tax

Toronto charges an annual Vacant Home Tax on residences left unoccupied, and the City says it has implications for both purchasers and vendors. The City says the tax forms a lien on the property, so a purchaser can be held responsible for it. It also says that if a property is sold after the year being declared, only the vendor can submit that year's declaration, and that if no declaration is received by the April 30 deadline, the property is treated as vacant. Read the City's change of ownership guidance with your lawyer, because the rules depend on your closing date.

The Pre Closing Visit

In an article dated July 31, 2018, the Real Estate Council of Ontario describes the pre closing visit as the buyer's last chance to confirm the home is in the condition you expected, the appliances and systems work, nothing included was removed and agreed repairs were made. If you want a refresher on the inspection stage, see our guide to the home inspection in York Region.

Pre Closing Visit Checklist

Walk every room and compare it with what you saw before.
Run the appliances, taps, heating or cooling and the garage door.
Confirm included fixtures, window coverings and appliances are still there.
Look for new damage, including water stains.
Confirm agreed repairs are done and ask where the keys will be released.

Quick Takeaways

Toronto buyers pay a municipal land transfer tax in addition to Ontario tax.
Tax ownership is updated through your lawyer's letter to the City, not the online tool.
Ask your lawyer about a tax and utility certificate.
Sellers request a final meter read and cancel pre authorized payments in writing.
Check the closing date against the Vacant Home Tax rules with your lawyer.

Frequently Asked Questions

Can I change tax ownership online in Toronto?

No. The City says its online tool cannot change ownership or notify the City of a change. A lawyer's letter is used.

What is a tax and utility certificate?

It is a document your lawyer can order that shows the current status of the property tax and utility accounts and upcoming due dates.

How often is the Toronto utility bill issued?

Most homeowners are billed on a four month cycle, three times a year, for water, wastewater and solid waste.

Do I need to request a final meter read when I sell?

Yes. Contact the City with your account number, closing date and a forwarding address. A final read fee applies.

Does the Vacant Home Tax affect my closing?

It can. The City publishes change of ownership rules that depend on your closing date, so review them with your lawyer.

Details checked against the City of Toronto, RECO and Ontario pages on October 24, 2026. Sources: City of Toronto: Buying, Selling or Moving, City of Toronto: Vacant Home Tax, RECO: Pre closing visits and Ontario: Land Transfer Tax. This article is general information, not legal advice. Your agreement and your lawyer control your transaction. Confirm current fees and forms with the municipality.

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Jonathan Colford

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