Land transfer tax (LTT) is a one-time provincial tax paid by the purchaser when ownership of real property changes hands. Every province except Alberta and Saskatchewan charges LTT, though the rate schedules differ considerably. Ontario and British Columbia also provide first-time home buyer rebates that can eliminate or reduce the tax on lower-priced homes. In Toronto, buyers pay a second, municipal land transfer tax on top of the provincial amount.
How much is land transfer tax in Canada?
For a $700,000 home purchased in Ontario, the provincial land transfer tax is $9,475. A first-time home buyer reduces that by $4,000 to $5,475. In British Columbia the tax on the same price is $12,000, with no rebate available above $524,999. Alberta charges no land transfer tax but does apply a land title transfer fee of roughly $350 on a $700,000 property. The calculator above computes the exact amount for any province using the 2026 rate schedules.
How land transfer tax is calculated
Marginal bracket system
Most provinces use a marginal rate structure. Tax applies at the stated rate only on the portion of purchase price within each bracket, not on the full price. Ontario’s 2026 brackets are: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% above $2,000,000. For a $500,000 home: $275 + $1,950 + $2,250 + $2,000 = $6,475 before any rebate.
British Columbia property transfer tax
BC uses a similar bracket structure: 1.0% on the first $200,000; 2.0% on $200,001 to $2,000,000; 3.0% on $2,000,001 to $3,000,000; 5.0% above $3,000,000. A further 2% applies to residential properties above $3,000,000. First-time buyers who have never owned property anywhere in the world qualify for a full exemption on homes priced up to $500,000, phasing out completely by $524,999. The BC PTT Act (s.13) governs these thresholds, which are set by regulation and updated periodically.
Quebec welcome tax
Quebec’s Bienvenue tax (welcome tax) uses three brackets: 0.5% on the first $55,200; 1.0% on $55,201 to $276,200; 1.5% on $276,201 to $552,300; 2.0% on $552,301 to $1,104,700; 2.5% above $1,104,700. These thresholds are adjusted annually by the provincial government; the values shown reflect 2026 thresholds published by the Quebec Ministry of Municipal Affairs. Montreal and other municipalities may add supplemental transfer duties.
Manitoba land transfer tax
Manitoba exempts the first $30,000, then applies 0.5% on $30,001 to $90,000; 1.0% on $90,001 to $150,000; 1.5% on $150,001 to $200,000; 2.0% above $200,000. No first-time buyer rebate exists for Manitoba LTT.
Toronto municipal land transfer tax
Buyers of property in the City of Toronto pay a second land transfer tax under the City of Toronto Act, 2006, using the same Ontario bracket rates. First-time buyers may claim an additional Toronto rebate of up to $4,475. A purchase in Toronto therefore triggers two LTT calculations: provincial and municipal, each computed independently on the same purchase price.
Provinces without land transfer tax
Alberta and Saskatchewan do not charge land transfer tax. Alberta levies a land title transfer fee calculated as a fixed amount plus a rate per $5,000 of value; on a $700,000 property the fee is approximately $350. Saskatchewan charges a similar land title fee. These fees are administrative charges, not taxes, and are far smaller than LTT in other provinces.
Verified against source
Ontario rates are set under the Land Transfer Tax Act, R.S.O. 1990, c. L.6, with the rate schedule confirmed against the Ontario government’s LTT page (ontario.ca/taxes-and-benefits/land-transfer-tax). BC rates are published under the Property Transfer Tax Act, RSBC 1996, c. 378. The Quebec welcome tax thresholds are published annually by the Ministère des Affaires municipales et de l’Habitation. The Toronto municipal rebate ceiling was confirmed against the City of Toronto’s LTT rebate page. These thresholds were verified in May 2026.
Provincial land transfer tax rates at a glance
| Province | Top marginal rate | FTB rebate max | Notes |
|---|---|---|---|
| Ontario | 2.5% | $4,000 | +Toronto municipal LTT |
| British Columbia | 5.0% | Exempt to $500K | Phase-out to $525K |
| Quebec | 2.5% | None (municipal) | Welcome tax; annual threshold update |
| Manitoba | 2.0% | None | First $30K exempt |
| New Brunswick | 1.0% flat | None | Applied to full purchase price |
| Nova Scotia | 1.5% flat | None | Municipal rates vary |
| PEI | 1.0% flat | Exempt to $200K | FTB exemption on first $200K |
| Newfoundland | 0.4% | None | Minimal flat-rate fee |
| Alberta | None | N/A | Land title fee only (~$350) |
| Saskatchewan | None | N/A | Land title fee only |
Why land transfer tax matters in your purchase budget
Land transfer tax is a closing cost paid in full on possession day. It cannot be added to the mortgage. Buyers who underestimate LTT sometimes face a cash shortfall at closing, particularly in Ontario and British Columbia where rates and prices combine to produce five-figure tax bills on average-priced properties.
In the Greater Toronto Area, where the median purchase price has consistently exceeded $1,000,000 in recent years according to the Toronto Regional Real Estate Board, a buyer who is not a first-time purchaser pays Ontario LTT of $16,475 plus Toronto LTT of approximately $16,475, for a combined total of roughly $32,950 before legal fees and other closing costs. That amount represents cash that must be available at closing and is often a binding constraint on purchase timing.
First-time buyers in Ontario and BC capture meaningful rebates, but the Ontario rebate of $4,000 covers only a fraction of LTT on homes priced above $368,000. Planning the savings target early, alongside the down payment, is the standard advice from mortgage professionals and real estate lawyers.
Edge cases and eligibility rules
Non-resident buyers
Buyers who are not Canadian citizens or permanent residents face additional taxes in Ontario and BC, entirely separate from LTT. Ontario’s Non-Resident Speculation Tax (NRST) is 25% of the purchase price and applies to residential property in the province (with exemptions for nominees, refugees, and some spouses of Canadians). BC’s Foreign Buyer Tax applies to residential property in designated regions including Metro Vancouver and the Fraser Valley. These taxes are calculated on the full purchase price, not on a marginal bracket, and dwarf the LTT amount for mid-priced homes.
Assignment sales
When a pre-construction buyer assigns the purchase agreement to a new buyer before closing, the assignee (new buyer) pays LTT on the assignment price, which includes the original purchase price plus any assignment profit. If the original buyer was a first-time home buyer, the FTB status does not automatically transfer to the assignee. Assignment income is also taxable under the Income Tax Act as business income or capital gain depending on the facts.
Exempt transfers
Transfers between spouses under the Family Law Act (Ontario) are generally exempt from LTT when no consideration changes hands. Transfers incident to a corporate reorganisation, amalgamation, or wind-up may qualify for exemption under specific regulations. All exemptions require completion of an affidavit filed through the provincial electronic land registration system at the time of transfer.
Farm and rural property
Qualifying farm property transfers may be exempt from LTT in Ontario under Ontario Regulation 70/91. The exemption applies narrowly to bona fide transfers of farming operations and requires that the transferee actually use the property for farming. Recreational or hobby farms generally do not qualify.