What Is Land Transfer Tax in Canada?
Land transfer tax (LTT) is a provincial tax charged when real property changes ownership. It is calculated as a percentage of the purchase price using tiered rate brackets — the higher the price, the higher the effective rate. Most provinces levy LTT; Alberta and Saskatchewan charge a flat title transfer fee instead. Ontario and British Columbia have the highest LTT rates among Canadian provinces. Toronto levies an additional municipal LTT on top of Ontario's provincial rate.
The land transfer tax is due on closing day and is collected by the buyer's lawyer — it cannot be rolled into the mortgage under CMHC or conventional lending rules. It is a one-time cost paid from your closing cash budget, separate from your down payment. Land transfer tax is one of several upfront costs to budget for — see our complete breakdown of the down payment and closing costs needed to buy a house in Canada.
Who Pays LTT — and When
The buyer pays land transfer tax in Canada. It is due at closing and remitted to the provincial government by your real estate lawyer or notary. LTT is not negotiable and is not part of your mortgage — budget for it alongside legal fees, title insurance, and home inspection costs when calculating your total upfront costs. See the closing cost calculator for a full closing cost estimate.
Which Provinces Charge Land Transfer Tax?
Most Canadian provinces levy land transfer tax. Alberta and Saskatchewan are the only provinces in Canada with no percentage-based land transfer tax; both charge a flat title transfer fee that typically amounts to less than $1,000 on a $500,000 purchase. Newfoundland and Labrador charges only a nominal registration fee. Ontario, BC, Manitoba, Quebec, Nova Scotia, New Brunswick, and Prince Edward Island all charge a percentage-based LTT or equivalent.
How Is Land Transfer Tax Calculated?
Land transfer tax is calculated using a tiered bracket formula applied to the purchase price. In Ontario, the first $55,000 is taxed at 0.5%; the next portion up to $250,000 at 1.0%; up to $400,000 at 1.5%; up to $2,000,000 at 2.0%; and amounts above $2,000,000 at 2.5%. Each bracket applies only to the portion of the price within that range — not the full purchase price. The total LTT is the sum of each bracket's contribution.
The Tiered Rate Formula Explained
On a $750,000 Ontario purchase: the first $55,000 is taxed at 0.5% ($275); the next $195,000 at 1.0% ($1,950); the next $150,000 at 1.5% ($2,250); and the remaining $350,000 at 2.0% ($7,000). Total Ontario LTT: $11,475. Toronto buyers apply the same brackets a second time for the Municipal Land Transfer Tax — combined Ontario + Toronto LTT on $750,000 is $22,950. On $1,000,000, the combined total is $32,950.
Ontario LTT Rate Table
| Portion of Purchase Price | Tax Rate | Tax on This Portion ($750K) |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,001 to $250,000 | 1.0% | $1,950 |
| $250,001 to $400,000 | 1.5% | $2,250 |
| $400,001 to $2,000,000 | 2.0% | $7,000 |
| Above $2,000,000 | 2.5% | $0 (n/a for $750K) |
| TOTAL | — | $11,475 |
Land Transfer Tax Rates by Province
Land transfer tax rates vary by province. Ontario and Toronto together charge the highest combined LTT in Canada — up to 2.5% provincially and an additional 2.5% municipally for Toronto properties. British Columbia charges property transfer tax (PTT) at 1% on the first $200,000, 2% up to $2,000,000, and 3% above that. Manitoba, Quebec, and Prince Edward Island also levy LTT. Alberta, Saskatchewan, and most rural areas charge a nominal title transfer fee with no percentage-based LTT.
Ontario and Toronto combined charge the highest land transfer tax in Canada — a buyer purchasing a $1,000,000 home in Toronto pays approximately $32,950 in combined provincial and municipal LTT.
| Province / Territory | Tax Name | Rate Range | FTHB Rebate / Exemption |
|---|---|---|---|
| Ontario | Land Transfer Tax (LTT) | 0.5% – 2.5% | Yes — up to $4,000 rebate |
| Toronto (MLTT) | Municipal Land Transfer Tax | 0.5% – 2.5% (additional) | Yes — up to $4,475 rebate |
| British Columbia | Property Transfer Tax (PTT) | 1% – 3%+ | Yes — full exemption to $500K |
| Manitoba | Land Transfer Tax | 0.5% – 2.0% | No provincial rebate |
| Quebec | Welcome Tax (Bienvenue) | 0.5% – 3.0%+ | Varies by municipality |
| Prince Edward Island | Real Property Transfer Tax | 1% flat | No |
| Nova Scotia | Deed Transfer Tax | ~1.5% (set by municipality) | No provincial rebate |
| New Brunswick | Land Transfer Tax | 0.5% flat | No |
| Alberta | Title Transfer Fee (flat) | ~$500–$800 on $500K home | N/A — no % LTT |
| Saskatchewan | Title Transfer Fee (flat) | ~$600–$900 on $500K home | N/A — no % LTT |
Toronto's Municipal Land Transfer Tax (MLTT)
Toronto buyers pay two LTT charges
If your property is within the City of Toronto boundaries, you owe both Ontario's provincial LTT and Toronto's municipal LTT — calculated on the same purchase price using the same brackets. The calculator above automatically applies both charges when you select Toronto as your municipality.
Toronto's municipal land transfer tax uses the exact same rate brackets as Ontario's provincial LTT, meaning Toronto buyers pay double the provincial rate on the same purchase price. Toronto is the only city in Canada with its own municipal land transfer tax. Effective April 1, 2026, higher graduated MLTT rates apply on the portion above $3,000,000.
Source: City of Toronto municipal land transfer tax rates. Accessed April 2026.
First-Time Home Buyer Rebates
First-time home buyers in Ontario can receive a full refund of provincial LTT on homes up to $368,000, saving up to $4,000. Toronto first-time buyers receive an additional municipal LTT rebate of up to $4,475. In British Columbia, first-time buyers are fully exempt from PTT on homes up to $500,000, with a partial exemption up to $525,000. These rebates apply only to principal residences and require the buyer to have never owned a home anywhere in the world.
Ontario LTT Rebate (up to $4,000)
Ontario first-time buyer rebate — key details
The Ontario LTT rebate is applied at closing and administered by the Ministry of Finance — you do not need to apply separately. The rebate is available only to buyers who have never owned a home anywhere in the world, and the property must be your principal residence. The maximum rebate of $4,000 equals the full LTT on a $368,000 purchase; for homes above that price, the buyer pays the difference.
Ontario's first-time home buyer LTT rebate covers the full provincial tax on homes up to $368,000 — the rebate is capped at $4,000 regardless of purchase price above that threshold. For a $600,000 Ontario purchase, the first-time buyer pays Ontario LTT of approximately $8,475 minus the $4,000 rebate = $4,475 net.
Source: Ontario land transfer tax calculation rules. Accessed April 2026.
Toronto MLTT Rebate (up to $4,475)
Toronto first-time buyers receive a separate municipal rebate of up to $4,475 in addition to the provincial rebate. Combined maximum savings in Toronto: $8,475 when both rebates are claimed. Eligibility requirements mirror the provincial rebate — never owned a home anywhere in the world, principal residence only. The rebate is processed at closing by your lawyer.
BC Property Transfer Tax First-Time Buyer Exemption
BC's Property Transfer Tax is functionally identical to land transfer tax — same tiered bracket mechanism, different provincial name. First-time buyers in BC are fully exempt from PTT on homes up to $500,000, with a flat $8,000 off PTT on homes from $500,001 to $835,000, a partial sliding exemption from $835,001 to $860,000, and no exemption above $860,000 (effective April 1, 2024). Eligibility: Canadian citizen or permanent resident, 18 or older, never owned a home anywhere in the world, principal residence, occupied within one year.
Source: BC Ministry of Finance — Property Transfer Tax. Accessed April 2026.
Provincial LTT Calculators
HomeCalc.ca provides dedicated land transfer tax calculators for Ontario, Toronto, and Manitoba — each pre-loaded with the correct provincial and municipal rate tables, first-time buyer rebate thresholds, and non-resident speculation tax rules. Select your province below to get an exact LTT estimate for your purchase price. Additional provincial calculators for British Columbia, Quebec, and Prince Edward Island are planned for upcoming releases.
Frequently Asked Questions — Land Transfer Tax Canada
Sources
- Ontario land transfer tax calculation rules — Government of Ontario. Accessed April 2026.
- City of Toronto municipal land transfer tax rates — City of Toronto. Accessed April 2026.
- BC Ministry of Finance — Property Transfer Tax — Government of British Columbia. Accessed April 2026.
- Manitoba Finance — Land Transfer Tax — Government of Manitoba. Accessed April 2026.
This calculator provides estimates only. Land transfer tax rates, first-time buyer rebate thresholds, and non-resident speculation tax rules are set by provincial and municipal governments and may change without notice. Rates in this tool reflect April 2026 figures. Consult a real estate lawyer for exact figures before your closing date. Read our disclaimer →