Do I pay capital gains tax when I sell my home in Markham?

For most homeowners, no. If the property you're selling is your principal residence, the gain is generally exempt from capital gains tax in Canada. Capital gains typically apply to investment or secondary properties, not your primary home. Confirm your specific situation with an accountant.

What is a mortgage penalty when selling a house?

If you break a fixed-rate mortgage before its term ends, your lender may charge a discharge penalty — often the greater of three months' interest or an interest rate differential calculation, which on a large mortgage can range from a few thousand to twenty thousand dollars or more. Always call your lender for your exact penalty before listing, as it can significantly affect your net proceeds.

How Much Does It Cost to Sell a House in Markham? [2026 Net Proceeds Calculator] | Michael John Lau, REALTOR®

Michael John Lau · REALTOR® · Free Seller Tool · Markham

How Much Does It Cost to Sell a House in Markham?

Q: How much does it cost to sell a house in Markham?

The main costs of selling a house in Markham are real estate commission (negotiable, often illustrated around 3.5% to 5% plus HST), legal fees (roughly $1,500 to $2,500), any mortgage discharge penalty if you break a fixed mortgage early, and optional preparation costs like staging and cleaning. On a $1.2M sale at an illustrative 5% plus HST commission, total costs before any mortgage payout often land in the range of $70,000 to $80,000, leaving net proceeds around $1.12M before the mortgage is paid off. Ontario sellers pay no land transfer tax and typically no capital gains on a principal residence.

Q: Do sellers pay land transfer tax in Ontario?

No. Land transfer tax in Ontario is paid by the buyer, not the seller. This is a common point of confusion — as a Markham seller, you do not pay provincial or municipal land transfer tax on the sale of your home.

The direct answer: The main costs of selling a Markham home are commission (negotiable, often illustrated at 3.5%–5% + HST), legal fees (~$1,500–$2,500), any mortgage discharge penalty, and optional prep like staging. On a $1.2M sale at an illustrative 5% + HST, total costs before mortgage payout often land around $70,000–$80,000 — leaving roughly $1.12M in net proceeds before the mortgage is paid. Ontario sellers pay no land transfer tax and typically no capital gains on a principal residence. Use the calculator below for your own numbers.

Your Numbers

Markham Net Proceeds Calculator

Enter your details for a real-time estimate of what you'll walk away with. Every field is adjustable — commission is negotiable, so try different rates. This is an estimate for planning; your exact figures come from a personalized seller net sheet.

Expected sale price What you expect the home to sell for

Commission rate (%) Negotiable — total for both sides. HST added automatically

Remaining mortgage balance What you still owe (paid from proceeds)

Mortgage penalty estimate Call your lender for the exact figure

Legal fees Typically $1,500–$2,500

Staging & preparation Optional — often pays for itself

Estimated Net Proceeds

Before income tax. Assumes principal residence (no capital gains) and no Ontario land transfer tax for sellers.

This calculator provides estimates for planning purposes only and is not financial, tax, or legal advice. HST is calculated at 13% on commission. Actual costs vary. For your precise numbers, request a personalized seller net sheet.

The Breakdown

Every Cost, Explained

Cost	Typical range	What to know
Real estate commission	Negotiable (illustrative 3.5%–5% + HST)	The largest line item. Always negotiable in Ontario — never fixed by law.
Legal fees	~$1,500–$2,500	Your real estate lawyer handles closing and title transfer.
Mortgage discharge penalty	$0–$20,000+	The ambush cost. Breaking a fixed mortgage early triggers a penalty — call your lender before you list.
Staging & preparation	~$2,000–$8,000	Optional, but reliably returns more than it costs at offer time.
Land transfer tax	$0 for sellers	Paid by the buyer in Ontario — not you.
Capital gains tax	$0 on principal residence	Generally exempt on your primary home; applies to investment properties.

Save Money the Smart Way

Don't Cut Costs — Cut the Right Costs

The temptation when you see these numbers is to shop for the lowest commission and skip the staging. That's usually the most expensive way to save money. The commission line is real, but the agent who prices accurately and markets fully often nets you more — even after their fee — than a discount agent who underprices or under-markets your home into a slow, reduced sale.

The costs genuinely worth managing are the avoidable surprises: the mortgage penalty you didn't call your lender about, the overpricing that leads to weeks on market and a price cut, the skipped preparation that costs you buyer competition. Those are where Markham sellers actually lose money. The full cost-of-selling guide and the complete selling guide go deeper on protecting your bottom line.

★★★★★

"From the very first phone call, they showed true professionalism and confidence. They gave a clear and accurate analysis of my home, provided great advice on preparation, and marketed it to the right buyers. They didn't just focus on closing — they focused on the best result."

Ernie Lau · Seller · Markham