Land Transfer Tax in Canada 2026 — Province by Province
TL;DR
Land transfer tax is a one-time tax the buyer pays on closing. Rates vary wildly: Toronto charges ~3.3% on a $1M home; Alberta charges almost nothing. Calculate yours in our Land Transfer Tax Calculator.
What land transfer tax is
Land Transfer Tax (LTT) — also called Property Transfer Tax (BC) or the "Welcome Tax" (Quebec) — is a one-time tax the buyer pays when title legally transfers. It's almost always the single biggest closing cost, often exceeding lawyer fees, title insurance, and inspection combined.
Provincial LTT cheat-sheet
| Province | Top rate | FTB rebate |
|---|---|---|
| Ontario | 2.5% over $2M | $4,000 |
| BC | 5% over $3M | up to $8,000 |
| Quebec | 2% over $500K | none (some municipal) |
| Manitoba | 2% over $200K | none |
| Nova Scotia | 1.5% (HRM) | none |
| Alberta | ~0% (registration only) | n/a |
| Saskatchewan | 0.3% (ISC fee) | n/a |
The Toronto double-tax
Buyers in the City of Toronto pay both Ontario's LTT and Toronto's Municipal LTT (MLTT) — basically the same brackets at the same rates, layered on top. In 2024 the city added "luxury bands" above $3M, $4M, $5M, $10M, and $20M, with rates climbing to 7.5% at the top.
On a $1M Toronto home: $16,475 provincial LTT + $16,475 MLTT = $32,950. Same home in Mississauga or Hamilton: $16,475. Same home in Calgary: ~$200.
Montreal's "Welcome Tax"
Quebec's LTT is set by municipality. Montreal uses higher caps than the rest of Quebec — the top rate climbs to 4% on the portion above $3.1M. The bill arrives 3–6 months after closing, which catches every newcomer off guard.
BC's PTT and its surcharges
BC's Property Transfer Tax is 1% on the first $200K, 2% from $200K–$2M, 3% from $2M–$3M, and 5% above $3M. There's also:
- A 20% additional PTT for foreign buyers in regulated areas (Metro Vancouver, Capital RD, etc.)
- A 2% additional PTT on the portion above $3M for residential property
First-time buyers can get a full PTT exemption under $500K (partial up to $835K).
The Alberta exception
Alberta has no LTT. There's a Land Titles registration fee (~$50 + $2 per $5,000 of value) and a similar mortgage registration fee. On a $500K home: ~$250 total. Compared to Toronto's $12,475 LTT on the same price — Alberta saves you roughly the cost of a kitchen renovation.
How to plan for it
LTT comes out of your cash on hand at closing — not the mortgage. Lenders won't finance it. Always budget LTT separately from your down payment when calculating how much cash you actually need to close.
Sources
Not financial advice. Calculate your exact LTT in our LTT calculator. Last reviewed: April 2026.
Editorial disclaimer
This article is published by LoonieLabs for general information only. It is not financial, tax, legal, accounting, or immigration advice and must not be relied on as such. Rules, dollar figures, interest rates, and program eligibility change — always verify with the Canada Revenue Agency, IRCC, or a qualified professional before acting. Spotted an error? See our corrections policy. Last reviewed: April 21, 2026.
Frequently Asked Questions
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Figures cross-checked against official banking & credit sources · Last reviewed April 21, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
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