Land transfer tax (LTT) is a closing-day tax paid to your provincial — and in Toronto, municipal — government when you buy a home. Rates and rebates vary widely by province: Alberta and Saskatchewan have no LTT (only modest registration fees), while a Toronto home buyer faces combined provincial plus municipal rates of up to 5%. First-time buyers can offset some or all of the tax through provincial rebates in Ontario, BC, and PEI.
Quick answer: LTT ranges from $0 in Alberta and Saskatchewan to over 5% in Toronto. On a $700,000 home in Ontario you pay $10,475 LTT; in Toronto an additional $10,475 municipal LTT. First-time buyer rebates apply in Ontario (up to $4,000), BC (up to $8,000), and PEI (full).
What this means: LTT is paid in cash at closing — it cannot be financed into the mortgage. Plan for this on top of the down payment, legal fees, and title insurance.
What to do next: Calculate the LTT for any province and check whether the first-time buyer rebate applies. Calculate land transfer tax →
2026 land transfer tax by province
| Province | LTT structure | Approximate tax on $700,000 home |
|---|---|---|
| Ontario | 0.5% to 2.5% tiered (4 brackets) | $10,475 |
| Toronto (municipal, on top of Ontario LTT) | 0.5% to 7.5% tiered, surcharge over $3M | $10,475 ($20,950 combined) |
| British Columbia | 1% to 5% tiered, plus 2% on portion over $3M, plus 5% foreign buyer tax | $12,000 |
| Quebec | 0.5% to 2.5% (varies by municipality, “welcome tax”) | $8,950 (Montreal) |
| Manitoba | Up to 2% tiered | $11,650 |
| New Brunswick | 1% flat | $7,000 |
| Nova Scotia | Municipal, typically 0.5-1.5% | $3,500-$10,500 |
| Newfoundland & Labrador | $100 + 0.4% on value over $500 | $2,900 |
| Prince Edward Island | 1% flat | $7,000 |
| Alberta | No LTT (registration fee ~$150) | $150 |
| Saskatchewan | No LTT (registration fee ~$3,600 at $700K) | $3,600 |
| Yukon, NWT, Nunavut | Registration fees, no LTT | $150-$1,000 |
Rates change occasionally. Confirm with your real estate lawyer before closing.
Ontario land transfer tax in detail
Ontario uses a four-tier marginal-rate structure:
| Portion of purchase price | Rate |
|---|---|
| $0 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 (residential) | 2.5% |
First-time buyer rebate: up to $4,000, fully offsetting LTT on homes up to $368,000. For homes above that, the $4,000 rebate is netted against the calculated LTT.
Toronto adds a municipal LTT on top with a similar tier structure peaking at 7.5% on the portion over $20 million. For homes between $400,000 and $3 million, the Toronto MLTT rate on most of the value is 2%, doubling the effective LTT for a Toronto buyer compared to elsewhere in Ontario.
British Columbia property transfer tax
- 1% on the first $200,000
- 2% on the portion between $200,000 and $2,000,000
- 3% on the portion between $2,000,000 and $3,000,000
- 5% on the portion over $3,000,000 (residential)
- Additional 2% on residential portion over $3 million
- 20% foreign buyer additional PTT in designated areas
First-time buyer exemption: full exemption for homes up to $500,000 and partial exemption between $500,000 and $835,000 (proportional). New-build exemption: full up to $750,000 and partial to $800,000.
First-time buyer rebates summary
| Province / city | First-time buyer rebate | Conditions |
|---|---|---|
| Ontario | Up to $4,000 | Fully offsets LTT on homes up to $368,000 |
| Toronto (municipal) | Up to $4,475 | Stacks with the provincial rebate |
| British Columbia | Up to about $8,000 | Full exemption to $500K, partial to $835K |
| Prince Edward Island | Up to 100% LTT | Income-tested, primary residence |
| Quebec | Some municipalities offer rebates | Varies; check Montreal Home Ownership Program |
Worked example: $700,000 home in Toronto, first-time buyer
| Step | Amount |
|---|---|
| Ontario LTT (4 tiers) | $10,475 |
| Toronto municipal LTT | $10,475 |
| Subtotal | $20,950 |
| Ontario first-time buyer rebate | −$4,000 |
| Toronto first-time buyer rebate | −$4,475 |
| LTT due at closing | $12,475 |
For comparison, the same buyer purchasing the same $700,000 home in Calgary pays approximately $150 in Alberta registration fees. The LTT gap of $12,000+ is the largest line in the closing-cost difference between Toronto and Calgary.
Beyond LTT: other closing-day costs
- Legal fees and disbursements: $1,500-$3,000
- Title insurance: $200-$500
- Home inspection: $400-$700 (pre-closing)
- Property tax adjustment to seller
- Adjustments for prepaid utilities
- Provincial PST on CMHC premium (Ontario, Quebec, Manitoba, Saskatchewan)
Add 1.5-4% of the home price for total closing costs depending on the province.
Frequently asked questions
- Which provinces have no land transfer tax?
- Alberta, Saskatchewan, Yukon, Northwest Territories, and Nunavut charge only modest land registration fees rather than a percentage-based land transfer tax.
- How much LTT do I pay in Toronto?
- Toronto charges both provincial Ontario LTT and a municipal LTT. On a $700,000 home, combined LTT is about $20,950 before first-time buyer rebates.
- Can I finance LTT into my mortgage?
- No. Land transfer tax is paid in cash at closing. Lenders do not allow it to be added to the mortgage principal.
- What is the Ontario first-time buyer LTT rebate?
- Up to $4,000, which fully offsets LTT on homes up to $368,000. Above that, the $4,000 rebate is netted against the calculated tax.
- What is the BC first-time buyer exemption?
- Full exemption for homes up to $500,000 and partial exemption between $500,000 and $835,000. New-build buyers have a separate exemption up to $750,000.
- Do non-residents pay extra LTT?
- Yes in some provinces. BC charges an additional 20% foreign buyer PTT in designated areas. Ontario has a 25% Non-Resident Speculation Tax on most residential purchases.
- Is land transfer tax tax-deductible?
- Not for personal residences. For rental properties, LTT is part of the adjusted cost base and reduces capital gains when you eventually sell.