What is land transfer tax in Canada?

Land transfer tax (LTT) is a provincial tax paid by the buyer when purchasing real estate. It is calculated as a percentage of the purchase price using marginal tax brackets — similar to income tax. Most provinces charge LTT, though Alberta, Saskatchewan, and Newfoundland & Labrador do not. The tax must be paid at closing and is one of the largest closing costs in provinces like Ontario and BC.

Do first-time home buyers get a rebate on land transfer tax?

Yes, in Ontario and BC. Ontario first-time buyers receive a rebate of up to $4,000 on the provincial LTT. If you purchase in Toronto, there is an additional Toronto-specific rebate of up to $4,475 on the municipal LTT. BC offers a full exemption if the purchase price is $500,000 or under, a partial (prorated) exemption between $500,001 and $525,000, and no exemption above $525,000. Other provinces do not have formal LTT rebate programs for first-time buyers.

Do Toronto buyers pay land transfer tax twice?

Yes. Properties in the City of Toronto are subject to both the Ontario provincial Land Transfer Tax and the Toronto Municipal Land Transfer Tax — both calculated on the same purchase price using the same marginal brackets. This means Toronto buyers pay roughly double what buyers in other Ontario cities pay. On a $900,000 home, a non-Toronto Ontario buyer pays approximately $16,475 in LTT, while a Toronto buyer pays approximately $32,950. First-time buyers can receive rebates on both taxes.

Which provinces have no land transfer tax?

Alberta, Saskatchewan, and Newfoundland & Labrador have no provincial land transfer tax. This is a meaningful financial advantage — for a $600,000 home in Ontario, the LTT would be approximately $10,475. Alberta buyers pay $0. Saskatchewan buyers pay $0. Newfoundland buyers pay $0 in LTT, though standard registration fees of approximately $1,000 apply. All three provinces still have standard closing costs such as legal fees and title insurance.

Free Tool — 2026

Land Transfer Tax Calculator Canada

Calculate land transfer tax for every Canadian province instantly. Ontario, BC, Quebec, Manitoba, New Brunswick, Nova Scotia, and PEI are all covered. First-time buyer rebates calculated automatically.

Province

Add Toronto Municipal LTT

Toronto buyers pay both provincial and city LTT

Purchase Price$750,000

$100K$2M

First-Time Home Buyer

Enables available provincial rebates

Net Land Transfer Tax

$11,475

After all applicable rebates

Tax Breakdown

Provincial LTT (Ontario)$11,475

Net Provincial LTT$11,475

Total LTT$11,475

Estimated Closing Costs

Land Transfer Tax$11,475

Legal Fees (estimate)$1,500

Title Insurance$500

Home Inspection$300

Total Estimated Closing$13,775

* Legal fees, title insurance and inspection are estimates. Actual costs vary.

Province Comparison at $750,000

Province	LTT	% of Price
Alberta	No LTT	—
Saskatchewan	No LTT	—
Newfoundland & Labrador	No LTT	—
Prince Edward Island	$7,200	0.96%
New Brunswick	$7,500	1.00%
Quebec	$10,775	1.44%
Nova Scotia	$11,250	1.50%
Ontario(selected)	$11,475	1.53%
Manitoba	$12,650	1.69%
British Columbia	$13,000	1.73%

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What Is Land Transfer Tax?

Land transfer tax is a one-time tax paid by the buyer of a property at the time of closing. It is calculated on the purchase price using marginal brackets — meaning different portions of the price are taxed at increasing rates, similar to how income tax works.

In Ontario, for example, the first $55,000 of the purchase price is taxed at 0.5%, the next $195,000 at 1.0%, the next $150,000 at 1.5%, and so on up to 2.5% for amounts above $2 million. On a $700,000 home, that adds up to approximately $11,475.

LTT is separate from your mortgage, legal fees, and home inspection costs. It must be paid in full at closing — it cannot be added to your mortgage (with one exception: CMHC insurance can be rolled in). Budget for it upfront.

Which Provinces Charge Land Transfer Tax?

Province	Tax Name	Effective Rate (at $700K)
Ontario	Land Transfer Tax	~1.6%
Toronto (additional)	Municipal LTT	~1.6%(On top of ON)
British Columbia	Property Transfer Tax	~1.7%
Quebec	Welcome Tax (Bienvenue)	~1.2%
Manitoba	Land Transfer Tax	~0.9%
New Brunswick	Land Transfer Tax	1.0%(Flat rate)
Nova Scotia	Deed Transfer Tax	1.5%(Municipal average)
Prince Edward Island	Real Property Transfer Tax	~0.96%
Alberta	None	$0(No LTT)
Saskatchewan	None	$0(No LTT)
Newfoundland & Labrador	None	$0(Reg. fees ~$1,000)

First-Time Buyer Rebates Explained

Ontario — Up to $4,000

First-time buyers in Ontario receive a rebate equal to the full LTT amount if it is $4,000 or less. If the LTT exceeds $4,000, the rebate is capped at $4,000. You qualify if you have never owned a home anywhere in the world and the property will be your primary residence. For a $500,000 home (LTT: $6,475), the effective net LTT after rebate is $2,475.

Toronto — Up to $4,475 (in addition to Ontario rebate)

Toronto first-time buyers can receive up to $4,475 off the Toronto municipal LTT, on top of the $4,000 Ontario provincial rebate. Combined, a qualifying Toronto first-time buyer could save up to $8,475. On a $500,000 Toronto home, the combined gross LTT would be approximately $12,950, reduced to roughly $4,475 after both rebates.

British Columbia — Full Exemption up to $500,000

BC first-time buyers purchasing at $500,000 or below pay zero PTT. Between $500,001 and $525,000, the exemption is prorated — it phases out linearly as the price rises toward $525,000. Above $525,000, no exemption applies. The property must be under 0.5 hectares and will be your principal residence.

How to Reduce Your Land Transfer Tax

Confirm your first-time buyer eligibility

In Ontario and BC, first-time buyer status can save you thousands. Eligibility rules differ by province — in Ontario you must never have owned property anywhere in the world.

Consider buying outside Toronto

Toronto is the only municipality in Canada with its own LTT on top of the provincial one. Buying in Mississauga, Brampton, or North York (outside the former City of Toronto) means paying only the provincial tax.

Buy in a no-LTT province

Alberta and Saskatchewan buyers pay zero provincial LTT. On a $600,000 purchase, that is a saving of approximately $10,000–$12,000 compared to Ontario or BC.

Negotiate the purchase price

Since LTT is calculated on the purchase price, a lower negotiated price means a lower LTT bill. A $25,000 price reduction on a $750,000 Ontario home saves roughly $500 in LTT alone.

Frequently Asked Questions

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