Land transfer tax (LTT) is often the largest closing cost after your down payment. It varies dramatically by province — in Alberta, there's effectively none. In Toronto, you pay it twice.
What Is Land Transfer Tax?
Land transfer tax is a provincial tax charged when ownership of property is transferred from seller to buyer. It's a closing cost paid on closing day and cannot be added to your mortgage.
Province-by-Province Breakdown
Ontario
Ontario uses a tiered system based on purchase price:
| Portion of Price | Rate | |----------------------|-------| | First $55,000 | 0.5% | | $55,000 – $250,000 | 1.0% | | $250,000 – $400,000 | 1.5% | | $400,000 – $2,000,000 | 2.0% | | Over $2,000,000 | 2.5% |
Toronto Municipal LTT: Toronto buyers pay a second, identical set of rates on top of the provincial tax. On a $800,000 home in Toronto, you pay both Ontario's ~$11,475 and Toronto's ~$11,475 — a total of ~$22,950.
First-time buyer rebate: Up to $4,000 rebate on provincial LTT, and up to $4,475 on Toronto's municipal LTT.
British Columbia
BC uses a tiered system:
| Portion of Price | Rate | |--------------------|------| | First $200,000 | 1.0% | | $200,000 – $2,000,000 | 2.0% | | $2,000,000 – $3,000,000 | 3.0% | | Over $3,000,000 | 5.0% |
First-time buyer exemption: Full exemption if purchase price ≤ $500,000. Partial rebate on prices up to $525,000. No LTT on the home, only on the mortgage registration fee.
Alberta
Good news for Alberta buyers: there is no land transfer tax in Alberta. Only a nominal title registration fee applies, which varies by purchase price but is typically $300–$500.
Quebec
Quebec's "welcome tax" (taxe de bienvenue) is set by municipalities within provincial guidelines:
| Portion of Price | Minimum Rate | |--------------------|-------------| | First $58,900 | 0.5% | | $58,900 – $294,600 | 1.0% | | $294,600 – $552,300 | 1.5% | | $552,300 – $1,057,000 | 2.0% | | Over $1,057,000 | 2.5% |
Montreal can apply additional taxes — rates vary by municipality.
Manitoba
Manitoba uses a tiered system:
- 0% on first $30,000
- 0.5% on $30,000–$90,000
- 1.0% on $90,000–$150,000
- 1.5% on $150,000–$200,000
- 2.0% on amounts over $200,000
First-time buyers may receive a rebate of up to $4,500.
Other Provinces
| Province | Rate | First-Time Buyer | |----------|------|-----------------| | Nova Scotia | ~1.5% | No provincial rebate | | Prince Edward Island | 1.0% | Possible exemption under $200K | | New Brunswick | 1.0% | No rebate | | Newfoundland | ~1.5% | No rebate | | Saskatchewan | None (registration fee only) | N/A |
How to Budget for Land Transfer Tax
As a rule of thumb, budget 1.5–2.5% of your purchase price for land transfer tax, depending on your province. In Toronto, budget up to 3–4% (due to the double tax).
Land transfer tax, along with legal fees and home inspection, should be in your "closing cost fund" — separate from your down payment.
Calculate Your Land Transfer Tax
Use our free Land Transfer Tax Calculator to get the exact amount for your province, including first-time buyer rebates.
Need help planning your closing costs? Contact us for a free consultation.