What is land transfer tax in Canada?

Land transfer tax is a tax paid when you purchase real estate. It is calculated as a percentage of the purchase price and paid at closing through your lawyer. The rates vary by province and territory. In Ontario, there is a provincial land transfer tax plus an additional municipal land transfer tax in Toronto.

How much is land transfer tax in Ontario?

Ontario land transfer tax is calculated on a marginal scale: 0.5% on the first $55,000, 1.0% on $55,001–$250,000, 1.5% on $250,001–$400,000, 2.0% on $400,001–$2,000,000, and 2.5% above $2,000,000. On a $600,000 home, the Ontario land transfer tax is $8,475. First-time buyers get a rebate of up to $4,000.

Do first-time home buyers pay land transfer tax?

It depends on the province. Ontario, BC, and PEI offer first-time buyer land transfer tax rebates. Alberta and Saskatchewan have flat transfer fees instead of percentage-based taxes. In Toronto, first-time buyers can receive rebates on both the provincial and municipal land transfer tax, saving up to $8,475 combined.

Does Alberta have land transfer tax?

Alberta does not have a land transfer tax. Instead, Alberta charges a flat land title transfer fee of $50 plus $2 per $5,000 of property value, and a mortgage registration fee of $50 plus $1.50 per $5,000 of mortgage amount. These fees are significantly lower than the land transfer taxes in Ontario or BC.

Is land transfer tax included in the mortgage?

No. Land transfer tax is a closing cost paid separately — it cannot be included in the mortgage. It must be paid in full at closing. Budget for it as part of your cash requirements alongside your down payment and other closing costs.

How is Toronto land transfer tax calculated?

Toronto home buyers pay both the Ontario provincial land transfer tax AND the Toronto municipal land transfer tax. The municipal tax mirrors the provincial rates. On a $700,000 home in Toronto, you would pay approximately $11,525 in provincial tax plus $11,525 in municipal tax = $23,050 total (before any first-time buyer rebates).

Land Transfer Tax Rates by Province in Canada 2026: Calculator & FTHB Rebates

Land transfer tax is one of the largest closing costs when buying a home in Canada — and it varies dramatically by province. On a $600,000 home, you could pay $0 in Alberta or $16,950 in Toronto. This guide breaks down the rates for every province and territory.

Land transfer tax by province and territory (2026)

Province/Territory	Tax Type	Rate Structure	Tax on $500,000 Home	Tax on $800,000 Home
Ontario	Marginal scale	0.5%–2.5%	$6,475	$11,475
Toronto (ON)	Provincial + Municipal	Double tax	$12,950	$22,950
British Columbia	Marginal scale	1%–5%	$8,000	$14,000
Quebec	Marginal scale (“Welcome Tax”)	0.5%–2.5%	$7,500	$13,250
Manitoba	Marginal scale	0%–2%	$7,500	$14,000
New Brunswick	Flat rate	1% of property value	$5,000	$8,000
Nova Scotia	Flat rate	1.5% of property value	$7,500	$12,000
Newfoundland & Labrador	Registration fee	$100 + $0.40/$100 value	$2,100	$3,300
PEI	Marginal scale	0%–1.5%	$5,000	$9,500
Alberta	Flat fee	$50 + $2/$5,000	~$250	~$370
Saskatchewan	Flat fee	0.3% of property value	$1,500	$2,400
Northwest Territories	Flat fee	$1.50/$1,000 of value	$750	$1,200
Yukon	No transfer tax	—	$0	$0
Nunavut	Flat fee	$1.50/$1,000 of value	$750	$1,200

Ontario land transfer tax rates

Property Value Bracket	Marginal Rate
First $55,000	0.5%
$55,001–$250,000	1.0%
$250,001–$400,000	1.5%
$400,001–$2,000,000	2.0%
Over $2,000,000	2.5%

Ontario land transfer tax examples

Purchase Price	Land Transfer Tax
$400,000	$4,475
$500,000	$6,475
$600,000	$8,475
$700,000	$10,475
$800,000	$12,475
$1,000,000	$16,475

Ontario first-time buyer rebate

First-time home buyers in Ontario receive a rebate of up to $4,000 on the provincial land transfer tax — equivalent to the tax on the first $368,333 of a home’s value.

Eligibility Criteria
Must be 18+ years old
Must be a Canadian citizen or permanent resident
Must not have owned a home anywhere in the world
Spouse must also not have owned a home while they were your spouse
Must occupy the home within 9 months of purchase

Toronto municipal land transfer tax

Toronto buyers pay an additional municipal land transfer tax on top of the provincial tax.

Property Value Bracket	Municipal Rate
First $55,000	0.5%
$55,001–$250,000	1.0%
$250,001–$400,000	1.5%
$400,001–$2,000,000	2.0%
Over $2,000,000	2.5%

Toronto combined land transfer tax

Purchase Price	Provincial Tax	Municipal Tax	Total
$500,000	$6,475	$6,475	$12,950
$600,000	$8,475	$8,475	$16,950
$700,000	$10,475	$10,475	$20,950
$800,000	$12,475	$12,475	$24,950
$1,000,000	$16,475	$16,475	$32,950

Toronto first-time buyer rebate

First-time buyers in Toronto receive up to $4,475 in municipal land transfer tax rebate (in addition to the $4,000 provincial rebate).

Combined first-time buyer savings in Toronto
Provincial rebate: up to $4,000
Municipal rebate: up to $4,475
Total maximum rebate: $8,475

British Columbia property transfer tax

Property Value Bracket	Rate
First $200,000	1%
$200,001–$2,000,000	2%
$2,000,001–$3,000,000	3%
Over $3,000,000	5%

BC additional taxes

Tax	Rate	Applies To
Foreign buyers tax	20%	Non-citizens/non-PR in designated areas
Speculation and vacancy tax	0.5%–2%	Owners who don’t declare income in BC

BC first-time buyer exemption

Criteria	Details
Full exemption	Properties up to $500,000 — no tax at all
Partial exemption	Properties $500,001–$525,000 — reduced tax
No exemption	Properties over $525,000
Newly built homes	Full exemption up to $750,000; partial up to $800,000

Quebec land transfer tax (Welcome Tax)

Property Value Bracket	Rate
First $58,900	0.5%
$58,901–$294,600	1.0%
$294,601–$500,000	1.5%
Over $500,000	2.0%–2.5% (varies by municipality)

Montreal adds a supplementary tax on properties over $500,000.

Quebec does not offer a first-time buyer land transfer tax exemption at the provincial level, though some municipalities offer partial rebates.

Manitoba land transfer tax

Property Value Bracket	Rate
First $30,000	0%
$30,001–$90,000	0.5%
$90,001–$150,000	1.0%
$150,001–$200,000	1.5%
Over $200,000	2.0%

How to reduce your land transfer tax

Strategy	Details
First-time buyer rebates	Available in ON, BC, PEI, and Toronto
Buy outside Toronto	Avoid the municipal land transfer tax entirely
Buy in Alberta or Saskatchewan	Minimal transfer fees instead of percentage-based taxes
Buy new construction	BC offers higher exemption thresholds for new builds
Negotiate with the seller	In rare cases, sellers may agree to a price adjustment to offset the tax
Transfer between family	Some provinces have exemptions for transfers between spouses

Land transfer tax as part of total closing costs

Closing Cost	Range	Notes
Land transfer tax	$0–$33,000+	Largest variable cost
Legal fees	$1,000–$2,500	Plus disbursements
Title insurance	$250–$400	One-time
Home inspection	$350–$600	Pre-closing
Appraisal	$300–$500	Sometimes lender-covered
Property insurance (first year)	$1,000–$3,000	Required by lender
CMHC insurance premium	2.8%–4.0% of mortgage	If under 20% down (added to mortgage)
Moving costs	$500–$5,000	Variable

→ See: Closing Costs Guide by Province