Question 1

What is land transfer tax in Canada?

Accepted Answer

Land transfer tax (LTT) is a provincial tax paid by the buyer when ownership of real property changes hands. Most provinces calculate it as a percentage of the purchase price using tiered brackets — similar to income tax brackets. You pay LTT once at closing, on top of your down payment. Alberta and Saskatchewan are the major exceptions: they charge a flat registration fee instead of a true transfer tax, which is typically $400–$600 regardless of purchase price.

Question 2

Which Canadian provinces have land transfer tax?

Accepted Answer

Ontario, British Columbia, Québec (called the "welcome tax" or taxe de bienvenue), Manitoba, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland all have land transfer tax. Alberta and Saskatchewan do not — they charge small flat registration fees instead. Toronto also has its own additional municipal LTT on top of Ontario's provincial tax, making it the only Canadian city where buyers pay LTT twice.

Question 3

How is Ontario land transfer tax calculated?

Accepted Answer

Ontario's land transfer tax uses graduated brackets on the purchase price: 0.5% on the first $55,000; 1.0% on $55,001–$250,000; 1.5% on $250,001–$400,000; 2.0% on $400,001–$2,000,000; and 2.5% on amounts over $2,000,000. On a $750,000 Ontario home, the LTT is $11,475. First-time buyers receive a rebate of up to $4,000, reducing the net tax to $7,475.

Question 4

Does Toronto have a separate land transfer tax?

Accepted Answer

Yes. Properties within the City of Toronto boundaries are subject to both Ontario's provincial LTT and Toronto's municipal LTT — effectively doubling the tax. Toronto's brackets mirror Ontario's at the lower price ranges. On a $750,000 Toronto property, a non-first-time buyer pays approximately $22,950 in combined LTT ($11,475 provincial + $11,475 municipal). First-time buyers receive rebates on both the provincial and municipal portions.

Question 5

What is the first-time homebuyer LTT rebate in Ontario?

Accepted Answer

Ontario offers a first-time homebuyer rebate of up to $4,000 on the provincial LTT. For a home priced at $368,000 or less, the rebate fully eliminates the provincial LTT. For more expensive properties, buyers pay the LTT minus $4,000. Toronto first-time buyers also receive a separate municipal LTT rebate of up to $4,475. To qualify, you must be purchasing your first home and the property must become your principal residence.

Question 6

How is BC's property transfer tax calculated?

Accepted Answer

BC's Property Transfer Tax (PTT) is calculated as: 1% on the first $200,000; 2% on $200,001–$2,000,000; 3% on $2,000,001–$3,000,000; and 5% on amounts over $3,000,000. On a $700,000 BC property, the PTT is $12,000. First-time buyers purchasing a home under $500,000 qualify for a full PTT exemption; the exemption phases out between $500,001 and $835,000.

Question 7

Is land transfer tax included in my mortgage?

Accepted Answer

No. Land transfer tax must be paid upfront in cash at closing — it cannot be added to your mortgage. This is why it's important to budget for LTT separately from your down payment. In Ontario, for a $750,000 home, first-time buyers need approximately $7,475 liquid (after rebate), and non-first-time buyers need $11,475, on top of the down payment and other closing costs.

Question 8

What closing costs should I budget for besides LTT?

Accepted Answer

Beyond land transfer tax, typical Canadian closing costs include: legal fees ($1,500–$3,000); home inspection ($400–$600); title insurance ($200–$400); mortgage appraisal ($300–$500); property tax adjustment (if the seller has pre-paid); and PST on CMHC insurance in Ontario (8%) and Québec (9%). Total closing costs beyond the down payment are typically 1.5–4% of the purchase price depending on province, property type, and whether CMHC insurance applies.

Land Transfer Tax Calculator — All Canadian Provinces

Land transfer tax in Canada — questions answered