Land Transfer Tax in Canada

Understanding Land Transfer Tax

Land transfer tax (also called property transfer tax in some provinces) is a one-time fee paid when you purchase a property in Canada. It's calculated as a percentage of the property's purchase price and varies significantly by province.

Provincial Rates at a Glance

• Ontario: 0.5% on first $55,000; 1% on $55,001–$250,000; 1.5% on $250,001–$400,000; 2% on $400,001–$2M; 2.5% above $2M. Toronto adds a municipal land transfer tax of equal amounts (doubled).
• British Columbia: 1% on first $200,000; 2% on $200,001–$2M; 3% above $2M; plus 2% foreign buyer surcharge in specified areas.
• Quebec: 0.5% on first $55,200; 1% on $55,201–$276,200; 1.5% on $276,201–$500,000; 2% above $500,000. Montréal adds 0.5% above $500,000.
• Manitoba: Progressive rates from 0% (first $30,000) to 2% (above $200,000).
• New Brunswick: 1% flat rate.
• Nova Scotia: 1.5% (deed transfer tax) — varies by municipality.
• PEI: 1% flat rate.
• Newfoundland: Registration fee based on value, no formal land transfer tax.
• Alberta: No land transfer tax. Only pay nominal title registration fees ($50 + $2 per $5,000 of value).
• Saskatchewan: No land transfer tax. Pay title transfer fee of 0.3% of property value.

First-Time Buyer Rebates

Several provinces offer partial or full land transfer tax rebates for first-time buyers:

• Ontario: Up to $4,000 rebate (covers tax on first $368,000)
• Toronto: Additional municipal rebate up to $4,475
• BC: Full exemption for properties up to $500,000; partial for $500,000–$525,000
• PEI: Full exemption for first-time buyers

How Land Transfer Tax Affects Your Budget

Land transfer tax is often an overlooked cost for first-time buyers. On a $500,000 home in Ontario, you'll pay approximately $6,475 in land transfer tax. In Toronto, that doubles to nearly $13,000. This amount is due on closing day and cannot be added to your mortgage — you need it in cash.