Costs, Comparisons and 2026 Rules
Land transfer tax by province in Canada: rates, who pays and first-time buyer relief
Compare land transfer tax across Canadian provinces in 2026, including Ontario, Toronto, BC, Quebec's welcome tax and the provinces that charge only title fees.
Land transfer tax is a one-time tax the buyer pays when ownership of real estate is transferred, and in most of Canada it is the biggest closing cost after the down payment. It is set by the province (and in Toronto and Quebec municipalities, also by the city), it is charged in brackets on the price or value, and it must usually be paid in cash when the transfer is registered. Alberta and Saskatchewan do not have a land transfer tax; they charge land titles registration fees that are far smaller. First-time buyers get relief in Ontario, Toronto, BC and PEI, but not under Quebec's provincial rules.
This guide compares the provinces and explains the method. Use the land transfer tax calculator for the arithmetic. It is part of the overview of buying and selling costs.
How bracket taxes work
Land transfer taxes work like income tax brackets. Each slice of the price is taxed at its own rate, and you add the slices together. A shortcut makes the arithmetic easy:
Tax = tax on all lower brackets + top rate x (price - start of top bracket)
For Ontario, the brackets are 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% above $400,000, and 2.5% above $2,000,000 for land with one or two single-family homes. The tax on everything up to $400,000 is $275 + $1,950 + $2,250 = $4,475. So a $700,000 Ontario home pays $4,475 + 2% x $300,000 = $10,475.
Province-by-province comparison
| Province or territory | What is charged | Basis | First-time buyer relief | Where to check |
|---|---|---|---|---|
| Ontario | Land transfer tax, 0.5% to 2.5% in brackets | Value of the consideration | Refund up to $4,000 | Ontario Ministry of Finance |
| Toronto (in addition to Ontario) | Municipal Land Transfer Tax, same brackets to $3M, higher brackets above $3M from 1 April 2026 | Value of the consideration | Rebate up to $4,475 | City of Toronto |
| British Columbia | Property transfer tax: 1% to $200,000, 2% to $2M, 3% above $2M, extra 2% on residential above $3M | Fair market value | Exemption on first $500,000 for homes up to $835,000, partial to $860,000; newly built home exemption to $1.1M | BC government |
| Quebec | Transfer duties ("welcome tax"), 0.5%, 1%, 1.5% brackets indexed yearly; some municipalities, including Montreal, charge more on upper slices | Greatest of price, consideration and adjusted municipal assessment | No provincial exemption; some municipal programs | Your municipality, Quebec government |
| Manitoba | Land transfer tax in brackets | Value of the land | Check current provincial programs | Manitoba Finance |
| New Brunswick | Real property transfer tax at a flat rate | Greater of price and assessed value | Check current provincial programs | Service New Brunswick |
| Nova Scotia | Municipal deed transfer tax, rate set by each municipality | Sale price | Some municipalities offer relief | Your municipality |
| Prince Edward Island | Real property transfer tax | Greater of price and assessed value | First-time buyer exemption available | PEI government |
| Newfoundland and Labrador | Registration fees for the deed and mortgage, partly value-based | Value | None as such | Registry of Deeds |
| Alberta | Land titles transfer and mortgage registration fees, small base fee plus a value-based charge | Value and mortgage amount | Not applicable | Alberta Land Titles |
| Saskatchewan | Title transfer fees charged by ISC, value-based | Value | Not applicable | Information Services Corporation |
| Territories | Land titles fees | Value | Varies | Territorial land titles office |
Rates and thresholds in the table for Ontario, Toronto and BC are as published by those governments in 2026. For other provinces, check the current rate on the official site before you close, because flat rates and municipal rates change.
The same price in different provinces
For a $700,000 resale house bought by a buyer who is not a first-time buyer (illustrative, using the published brackets):
| Location | Calculation | Tax |
|---|---|---|
| Ontario outside Toronto | $4,475 + 2% x $300,000 | $10,475 |
| Toronto | Ontario $10,475 + MLTT $10,475 | $20,950 |
| British Columbia | $2,000 + 2% x $500,000 | $12,000 |
| Calgary or Edmonton | Land titles fees only | a few hundred dollars |
If the same buyer qualified as a first-time buyer, the Ontario bill would drop by $4,000 to $6,475, the Toronto bill by $8,475 to $12,475, and the BC bill by $8,000 to $4,000 (because $700,000 is below the $835,000 full-exemption ceiling, the tax on the first $500,000 is waived).
What counts as the value
- Ontario and Toronto tax the value of the consideration: the price, plus any debts the buyer assumes and certain other amounts. Chattels such as appliances are generally not land, but splitting the price artificially to cut tax is risky and the ministry can reassess.
- BC taxes fair market value, which is usually the price in an arm's-length sale but can be higher in a non-arm's-length transfer.
- Quebec municipalities compute duties on the greatest of the price, the consideration and the municipal assessment multiplied by the comparative factor. On a property assessed above its sale price, you pay on the assessment.
Non-resident and foreign buyer taxes
On top of the general tax, Ontario charges a 25% Non-Resident Speculation Tax province-wide on residential purchases by foreign nationals, foreign corporations and taxable trustees. Toronto has charged a 10% Municipal Non-Resident Speculation Tax since 1 January 2025. BC charges an additional property transfer tax to foreign entities in specified areas. Most non-Canadians are also barred from buying residential property by the federal ban. See foreign buyer ban and non-resident taxes.
When and how it is paid
- Ontario, Toronto, BC: your lawyer (or BC notary) pays the tax electronically when the transfer is registered on closing, out of the funds you provide.
- Quebec: the municipality sends a bill after the deed is registered; you pay it by the due date on the bill.
- Alberta, Saskatchewan: fees are paid at registration as part of your lawyer's disbursements.
Frequently asked questions
Can land transfer tax be added to my mortgage?
Generally no. Lenders treat it as a closing cost to be paid from your own funds. Plan for it alongside the down payment.
Do I pay land transfer tax on a new home?
Yes. Land transfer tax applies to new and resale homes. In BC, the newly built home exemption can remove it for Canadian citizens and permanent residents buying a new home worth up to $1,100,000.
Do both spouses need to be first-time buyers?
It depends on the province. In Ontario, if one spouse has owned a home while in the relationship, neither qualifies; if one partner simply owned before, the refund may be proportionate. Read the provincial rules and see the Ontario and Toronto guide.
Is land transfer tax the same as property tax?
No. Land transfer tax is paid once when you buy. Property tax is charged every year by the municipality.
Sources
- Ontario Ministry of Finance — land transfer tax rates, refunds, NRST
- City of Toronto — Municipal Land Transfer Tax and MNRST
- Government of British Columbia — property transfer tax rates and exemptions
- Government of Quebec — transfer duties
- Alberta Land Titles — registration fees
- Information Services Corporation — Saskatchewan land titles fees
