What Is Land Transfer Tax?
When you purchase a property in Canada, most provinces charge a land transfer tax (LTT) — a one-time tax levied on the transfer of real estate from one owner to another. It is paid by the buyer at closing, on top of your down payment and other closing costs.
Land transfer tax is calculated as a percentage of the purchase price using a graduated system, similar to how income tax brackets work. Each tier of the purchase price is taxed separately at an increasing rate.
Ontario Land Transfer Tax — A Worked Example
Ontario uses the following graduated rates:
| Purchase Price Range | Tax 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% |
On a $700,000 home in Ontario, the land transfer tax works out to approximately $9,475. This is a significant cost that must be paid in cash at closing — it cannot be rolled into your mortgage.
The Toronto Municipal Land Transfer Tax
Buyers purchasing property within the City of Toronto face an additional layer: the Municipal Land Transfer Tax (MLTT), which applies on top of the provincial tax at essentially the same graduated rates. This means Toronto buyers effectively pay land transfer tax twice.
First-Time Home Buyer Rebates
Most provinces that charge land transfer tax offer a rebate for first-time home buyers — but you must apply for it at the time of closing through your lawyer.
- Ontario: Rebate of up to $4,000 on the provincial land transfer tax
- Toronto (MLTT): Additional rebate of up to $4,475 on the municipal tax
- British Columbia: Rebate of up to $8,000 for homes under $835,000
- Manitoba: Rebate of up to $3,500
To qualify for a first-time buyer rebate, you must never have owned a home anywhere in the world. In Ontario specifically, your spouse also must never have owned a home while being your spouse.
Land Transfer Tax by Province — 2026 Summary
| Province | Land Transfer Tax | First-Time Buyer Rebate |
|---|---|---|
| Ontario | Yes — graduated rates | Up to $4,000 |
| Toronto (extra) | Yes — municipal tax on top | Up to $4,475 |
| British Columbia | Yes — Property Transfer Tax | Up to $8,000 |
| Quebec | Yes — Welcome Tax | Varies by municipality |
| Manitoba | Yes | Up to $3,500 |
| Nova Scotia | Yes | No provincial rebate |
| New Brunswick | Yes — 1% of purchase price | No rebate |
| PEI | Yes — 1% of purchase price | No rebate |
| Alberta | No — title transfer fees only | N/A |
| Saskatchewan | No — title transfer fees only | N/A |
Provinces With No Land Transfer Tax
Alberta and Saskatchewan do not charge a provincial land transfer tax. Buyers in these provinces still pay small land title transfer fees, but these are a fraction of the cost seen in Ontario or British Columbia — typically a few hundred dollars rather than thousands.
This is one reason Alberta is considered one of the most affordable provinces for home buying from a total cost perspective, even when purchase prices are similar to other regions.
Calculate your exact land transfer tax
Our free Land Transfer Tax Calculator covers every province and includes first-time buyer rebates.