What is land transfer tax?
Land transfer tax is a one-time tax you pay when you buy a home or land in most of Canada. It is charged by the province, and in Toronto and Montréal also by the city, and it is due on the day the sale closes. Your real estate lawyer or notary collects it from you and pays it to the government when the property is registered in your name. Because it can't be added to your mortgage, it has to come out of your savings along with your down payment, so it's one of the biggest closing costs to budget for.
The tax is progressive: like income tax, each slice of the price is taxed at its own rate, and only the part above each threshold pays the higher rate. That is why the effective rate on a typical home is well below the top rate shown in the brackets.
Land transfer tax rates in 2026
Ontario
Ontario charges 0.5% on the first $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2 million, and 2.5% above $2 million for homes with one or two single-family residences.
Toronto
Buyers in the City of Toronto pay the Ontario tax plus the Municipal Land Transfer Tax (MLTT), which uses the same brackets up to $3 million. Since April 1, 2026, luxury tiers apply above that: 4.4% from $3 million to $4 million, 5.45% to $5 million, 6.5% to $10 million, 7.55% to $20 million and 8.6% above $20 million. Paying two taxes roughly doubles the cost of buying in Toronto compared with the rest of Ontario.
British Columbia
B.C.'s property transfer tax is 1% on the first $200,000, 2% up to $2 million, 3% up to $3 million and 5% above $3 million for residential property (3% plus the additional 2%).
Québec and Montréal
In Québec the tax is called droits de mutation, better known as the welcome tax (taxe de bienvenue). It is charged by the municipality on the greater of the price and the municipal assessment. In 2026 the standard rates are 0.5% up to $62,900, 1% up to $315,000 and 1.5% above. Montréal adds higher brackets: 2% from $552,300, 2.5% from $1,104,700, 3.5% from $2,136,500 and 4% above $3,113,000. The thresholds are indexed every January.
First-time home buyer rebates
- Ontario: a refund of up to $4,000, which wipes out the tax on a home up to $368,000.
- Toronto: an additional MLTT rebate of up to $4,475, so a first-time buyer in Toronto can save up to $8,475 in total.
- British Columbia: no tax on the first $500,000 of homes worth up to $835,000 (a saving of up to $8,000), phased out between $835,000 and $860,000. Newly built homes up to $1.1 million can qualify for a separate full exemption.
- Québec: there is no province-wide first-time buyer exemption, though some municipalities offer their own programs.
To qualify you generally must be at least 18, be a Canadian citizen or permanent resident, move in as your principal residence within nine months, and never have owned a home anywhere in the world (in Ontario, neither can your spouse while you were together).
Provinces without land transfer tax
Alberta and Saskatchewan don't have a land transfer tax; buyers pay only modest land titles registration fees. The other provinces charge their own versions, such as Manitoba's land transfer tax and New Brunswick's 1% real property transfer tax.
Worked examples
A buyer in Ottawa paying $700,000 pays Ontario land transfer tax of $10,475: $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the slice up to $400,000 and $6,000 on the last $300,000 — an effective rate of 1.5%.
The same buyer in Toronto paying $900,000 owes $14,475 to Ontario and another $14,475 to the city, for $28,950. As first-time buyers they get $4,000 and $4,475 back, so they pay $20,475 and save $8,475.
In British Columbia, a $750,000 home costs $13,000 in property transfer tax, or $5,000 for a first-time buyer, who saves the full $8,000. At $850,000 the exemption is partly phased out, leaving a saving of about $3,200.
In Montréal, a $600,000 condo carries about $7,349 in welcome tax, compared with $7,111 under the standard Québec rates.
Next, see what price your income supports with our mortgage affordability calculator, and compare payments in the Canadian mortgage calculator.
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Frequently asked questions
How much is land transfer tax on a $1 million home in Toronto?
When do I pay land transfer tax?
Do first-time buyers pay land transfer tax in Ontario?
Is the Québec welcome tax based on the price or the assessment?
Sources & methodology
This calculator was last reviewed on November 2, 2026. Figures are based on the following official and primary sources:
- Ontario Ministry of Finance – Calculating land transfer tax
- City of Toronto – Municipal Land Transfer Tax rates
- Government of B.C. – Property transfer tax
- Ville de Montréal – Calcul des droits sur les mutations immobilières
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