Land transfer tax (LTT) is a provincial tax payable by the buyer when real estate is transferred. The tax is calculated as a percentage of the property’s value of consideration (purchase price). Rates differ significantly by province; some provinces have minimal or no LTT.
Provinces with significant LTT
- Ontario: graduated 0.5% to 2.5% (with 2.5% only on residential above $2M)
- British Columbia: graduated 1.0% to 5.0% (Property Transfer Tax)
- Quebec: municipal “welcome tax” calculated by city, typically 0.5% to 3% in tiers
- Manitoba: graduated 0.5% to 2.0%
- New Brunswick: 1.0% real property transfer tax
- Nova Scotia: deed transfer tax varies by municipality (typically 1.5%)
- Toronto: additional municipal LTT mirroring Ontario brackets, with extra tiers above $2M up to 7.5% above $20M
First-time buyer rebates
Several provinces offer LTT rebates for first-time home buyers: Ontario up to $4,000, BC up to $8,000 (for properties up to $500K), Toronto MLTT up to $4,475. Combined Ontario + Toronto first-time buyer rebate can be $8,475.
Payment
LTT is due at closing when the title transfer is registered. The buyer’s lawyer collects it from closing funds and remits it through the provincial land registration system.