Land Transfer Tax by Province in Canada (2026): What You Will Pay
Land transfer tax is the largest closing cost most Canadian buyers face, it is due in cash on completion, and it cannot be added to the mortgage. It also varies more between provinces than any other cost of buying — from nothing at all in Alberta to well over $20,000 in Toronto on the same purchase price.
Ontario: the provincial rates
| Portion of purchase price | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Above $2,000,000 | 2.5% |
First-time buyers claim a rebate of up to $4,000, which covers the tax in full on homes up to about $368,000.
Toronto charges it twice. Buyers inside the City of Toronto pay the Municipal Land Transfer Tax on top of the Ontario tax — effectively doubling the bill. Toronto adds its own first-time buyer rebate of up to $4,475, so an eligible first-time buyer can claim $8,475 in total across both. From 1 April 2026 Toronto also added luxury brackets of 4.4% to 8.6% on the portion of price above $3 million for qualifying residential properties.
British Columbia
BC's Property Transfer Tax has its own scale, and its first-time buyer relief is unusually generous at the bottom:
- Full exemption for qualifying first-time buyers on homes at or below $500,000.
- A maximum $8,000 reduction applies between $500,000 and $835,000.
- The $8,000 benefit then tapers linearly from $835,000 to $860,000, where it reaches zero.
Alberta and Saskatchewan: effectively nothing
Alberta charges no land transfer tax at all — for anyone, first-time buyer or not. There is only a land title registration fee on a sliding scale, roughly $550 on a $500,000 purchase. Saskatchewan is similar. On a median-priced home this is a five-figure saving versus Ontario, and it is one of the few genuinely large, permanent cost differences between Canadian provinces.
What it means in practice
| Where you buy | Approx. transfer tax on a $665,600 home |
|---|---|
| Alberta / Saskatchewan | ~$550 (title fee only) |
| Ontario, outside Toronto | ~$10,000 |
| Toronto (provincial + municipal) | ~$20,000 |
That is a $19,500 swing on the identical purchase price, payable in cash on closing day. It belongs in your deposit plan from the very start, not as an afterthought two weeks before completion.
Three rules worth knowing
- You cannot finance it. Land transfer tax is a closing cost, paid from savings alongside the down payment and legal fees.
- "First-time buyer" is defined strictly. Generally you must never have owned a home anywhere in the world, and in some provinces your spouse must not have owned one during your relationship.
- Rebates are usually claimed at registration. Your lawyer normally applies it on closing so you never pay the cash out — but confirm, because a missed claim can mean a refund application later.
Add transfer tax to your full purchase budget
Model the down payment, land transfer tax, CMHC premium and year-one costs together.
Try the Home Buying Cost Calculator (Canada) →Frequently asked questions
How much is land transfer tax in Ontario?
Ontario charges 0.5% on the first $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2 million and 2.5% above that. On a $665,600 home the provincial tax is roughly $10,000. First-time buyers can claim a rebate of up to $4,000.
Why is land transfer tax so high in Toronto?
Toronto levies a Municipal Land Transfer Tax in addition to the Ontario provincial tax, which roughly doubles the bill. Eligible first-time buyers can claim both rebates — $4,000 provincial and $4,475 municipal — for $8,475 in total.
Does Alberta have land transfer tax?
No. Alberta charges no land transfer tax for any buyer. There is only a land title registration fee on a sliding scale, about $550 on a $500,000 purchase. Saskatchewan works similarly.
What is the BC first-time home buyer exemption?
Qualifying first-time buyers are fully exempt from BC Property Transfer Tax on homes up to $500,000. A maximum $8,000 reduction applies between $500,000 and $835,000, then tapers linearly to zero at $860,000.
Related
- Home-buying cost calculator (Canada)
- Renting vs buying in Canada
- Closing costs in Canada
- FHSA: the first home savings account
- Rent vs buy calculator (Canada)
Sources
- Ontario Ministry of Finance — Land Transfer Tax rates and first-time buyer refund
- City of Toronto — Municipal Land Transfer Tax rates, rebate and 2026 luxury brackets
- BC Ministry of Finance — Property Transfer Tax and first-time home buyers programme
- Alberta Land Titles — registration fee schedule
Figures compiled September 2026 from public sources and not individually verified; worked examples are illustrative. Provincial and municipal rates, thresholds and rebate rules change — confirm with your province, municipality and real estate lawyer before relying on them. General information, not financial or legal advice.
Cite this article
Randive, A. (2026). Land Transfer Tax by Province in Canada (2026). DecisionsCalc. https://decisionscalc.com/articles/land-transfer-tax-by-province-canada/