Land Transfer Tax Deep Dive

Land transfer tax is typically the single largest closing cost for Canadian home buyers. It is a tax charged by the province (and in some cases, the municipality) when real property changes hands and the title is registered in the new owner’s name. The amount you owe depends entirely on where you are buying and how much the property costs.

This page breaks down the land transfer tax rates for every major province, explains the first-time buyer rebates available, and walks through detailed calculation examples so you know exactly what to expect.

How Land Transfer Tax Works

When you purchase a home, your real estate lawyer calculates the land transfer tax as part of the closing process and remits it to the government on your behalf. The tax is due on the closing date and is paid from the closing funds you deliver to your lawyer.

Most provinces use a tiered (marginal) system, meaning different portions of the purchase price are taxed at different rates — similar to how income tax brackets work. You do not pay the highest rate on the entire purchase price; you pay each rate only on the portion that falls within that bracket.

Ontario

Ontario uses a tiered land transfer tax system with the following brackets:

Purchase Price Portion	Tax Rate
Up to $55,000	0.5%
$55,001 to $250,000	1.0%
$250,001 to $400,000	1.5%
$400,001 to $2,000,000	2.0%
Over $2,000,000	2.5%

Ontario Calculation Example — $500,000 Home

Here is how the tax is calculated on a $500,000 home purchased in Ontario (outside Toronto):

• First $55,000 at 0.5% = $275
• $55,001 to $250,000 ($195,000) at 1.0% = $1,950
• $250,001 to $400,000 ($150,000) at 1.5% = $2,250
• $400,001 to $500,000 ($100,000) at 2.0% = $2,000
• Total provincial land transfer tax: $6,475

Ontario First-Time Buyer Rebate

Ontario offers a land transfer tax rebate of up to $4,000 for eligible first-time home buyers. Learn more about the Ontario first-time buyer programs that can reduce your costs. This rebate covers the full land transfer tax on the first $368,333 of a home’s purchase price. To qualify, you must:

• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Never have owned a home anywhere in the world (see who qualifies as a first-time buyer)
• Occupy the home as your principal residence within nine months of purchase

For our $500,000 example, the first-time buyer rebate of $4,000 reduces the net provincial land transfer tax from $6,475 to $2,475.

Toronto Municipal Land Transfer Tax

If you are buying within the City of Toronto, you pay a second land transfer tax — the Toronto Municipal Land Transfer Tax (MLTT) — on top of the provincial one. Toronto is currently the only municipality in Ontario that levies its own land transfer tax, though others have periodically considered it.

Toronto’s MLTT rates mirror the provincial structure:

Purchase Price Portion	Tax Rate
Up to $55,000	0.5%
$55,001 to $250,000	1.0%
$250,001 to $400,000	1.5%
$400,001 to $2,000,000	2.0%
Over $2,000,000	2.5%

Toronto Calculation Example — $500,000 Home

On a $500,000 home in the City of Toronto, the municipal land transfer tax is calculated the same way as the provincial tax:

• First $55,000 at 0.5% = $275
• $55,001 to $250,000 ($195,000) at 1.0% = $1,950
• $250,001 to $400,000 ($150,000) at 1.5% = $2,250
• $400,001 to $500,000 ($100,000) at 2.0% = $2,000
• Total Toronto municipal land transfer tax: $6,475

Toronto First-Time Buyer Rebate

Toronto offers an additional MLTT rebate of up to $4,475 for eligible first-time buyers. Combined with the provincial rebate, a first-time buyer purchasing a $500,000 home in Toronto would see:

Tax Component	Amount
Provincial land transfer tax	$6,475
Provincial first-time buyer rebate	-$4,000
Toronto municipal land transfer tax	$6,475
Toronto first-time buyer rebate	-$4,475
Net total land transfer tax	$4,475

Without the rebates, the total would be $12,950. The rebates save this buyer $8,475 — a substantial benefit of being a first-time buyer in Toronto.

Caution

The double land transfer tax in Toronto is one of the most significant costs that buyers from outside the city do not anticipate. If you are comparing a $500,000 home in Mississauga (just outside Toronto, where only the provincial LTT applies) versus a $500,000 home in downtown Toronto, the Toronto home comes with approximately $6,475 in additional land transfer tax — even after the first-time buyer rebate.

British Columbia

BC uses a tiered property transfer tax system:

Purchase Price Portion	Tax Rate
Up to $200,000	1.0%
$200,001 to $2,000,000	2.0%
Over $2,000,000	3.0%
Over $3,000,000 (residential)	5.0%

BC Calculation Example — $500,000 Home

On a $500,000 home in BC:

• First $200,000 at 1.0% = $2,000
• $200,001 to $500,000 ($300,000) at 2.0% = $6,000
• Total property transfer tax: $8,000

BC First-Time Buyer Exemption

BC offers a full exemption from the property transfer tax for first-time buyers purchasing homes up to a certain threshold. Check the BC government website for current limits, as these thresholds are updated periodically. When the program was introduced, the full exemption applied to homes priced up to $500,000, with partial exemptions for homes between $500,000 and $525,000. Given rising home prices, the threshold may have been adjusted.

To qualify, you must be a Canadian citizen or permanent resident, have lived in BC for at least one year (or filed two income tax returns as a BC resident in the past six years), and never have owned a principal residence anywhere in the world.

If you qualify for the full exemption on a $500,000 home, your property transfer tax drops from $8,000 to $0 — one of the most generous first-time buyer benefits in Canada.

Quebec

Quebec calls its land transfer tax the welcome tax (droits de mutation immobiliere), and it is charged by the municipality where the property is located. For more on buying in Quebec, see our Quebec programs guide. The rates are set by the provincial government, but the tax is collected by and paid to the municipality.

Purchase Price Portion	Tax Rate
Up to $58,900	0.5%
$58,901 to $294,600	1.0%
$294,601 to $500,000	1.5%
Over $500,000	3.0%

Note: Some Quebec municipalities (such as Montreal) add an additional bracket for properties over $1,000,000 or $2,000,000 at higher rates. Check with your local municipality for exact rates.

Quebec Calculation Example — $500,000 Home in Montreal

On a $500,000 home in Montreal:

• First $58,900 at 0.5% = $294.50
• $58,901 to $294,600 ($235,700) at 1.0% = $2,357
• $294,601 to $500,000 ($205,400) at 1.5% = $3,081
• Total welcome tax: approximately $5,733

Caution

Quebec does not offer a first-time buyer rebate or exemption for the welcome tax. This means first-time buyers in Quebec pay the full amount regardless of whether they have purchased a home before. The welcome tax is payable within 30 days of receiving the invoice from your municipality — not at closing. Budget for it, but know that you have a short window after closing to pay it.

Quebec’s Unique Timing

Unlike other provinces where the land transfer tax is paid at closing through your lawyer, in Quebec the welcome tax bill is sent to you by the municipality after the sale is registered. You typically have 30 days to pay. This is an important distinction — the money still needs to be in your budget, but you do not need it on closing day itself.

Other Provinces

Alberta

Alberta does not charge a land transfer tax. Instead, you pay a land titles registration fee based on the property value and the mortgage amount. These fees are typically $300 to $600 combined — a fraction of what buyers in Ontario, BC, or Quebec pay. See our Alberta and Prairies guide for more on this cost advantage.

Saskatchewan

Saskatchewan also does not charge a land transfer tax. Land titles registration fees apply, typically totalling $200 to $500. Saskatchewan’s lack of a land transfer tax is one of the cost advantages of buying in the province.

Manitoba

Manitoba charges a land transfer tax on a tiered basis:

Purchase Price Portion	Tax Rate
Up to $30,000	0%
$30,001 to $90,000	0.5%
$90,001 to $150,000	1.0%
$150,001 to $200,000	1.5%
Over $200,000	2.0%

On a $500,000 home in Manitoba, the land transfer tax is approximately $7,400. Manitoba does not currently offer a first-time buyer rebate for land transfer tax.

Atlantic Provinces

• Nova Scotia — Deed transfer tax of 1.5% of the purchase price. On a $300,000 home, that is $4,500. Halifax applies the same rate. No first-time buyer exemption.
• New Brunswick — Land transfer tax of 1.0% of the purchase price (or assessed value, whichever is greater). On a $300,000 home, that is $3,000.
• Prince Edward Island — Real property transfer tax of 1.0% of the purchase price. On a $300,000 home, that is $3,000.
• Newfoundland and Labrador — Registration fees based on property value. Typically under $500 — one of the lowest costs in the country.

Tip

Alberta and Saskatchewan’s lack of a land transfer tax is a significant advantage for first-time buyers in those provinces. If you are comparing the true cost of homeownership between provinces, do not forget to factor in — or out — the land transfer tax. On a $500,000 home, the difference between buying in Alberta (near $0) and buying in Toronto (up to $12,950 before rebates) is enormous.

How to Calculate Your Land Transfer Tax

Most provincial governments offer free online land transfer tax calculators on their websites. Here is where to find them:

• Ontario — Search for “Ontario land transfer tax calculator” on the Ontario government website
• Toronto — The City of Toronto website has a combined provincial and municipal calculator
• BC — The BC government’s property transfer tax page includes an online calculator
• Quebec — Several third-party calculators are available; confirm rates against your municipality
• Manitoba — The Manitoba government website includes rate information

Your real estate lawyer will also calculate the exact amount as part of their closing services, but it helps to know the number in advance so you can budget accurately.

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