The same house, a very different tax bill

Land transfer tax is the closing cost buyers most often forget to budget, and it is also the one that varies most by address. Applying each region's 2026 brackets to the same $750,000 purchase shows the spread:

The gap exists because most provinces use marginal brackets, exactly like income tax: on a $750,000 Ontario purchase, the first $55,000 is taxed at 0.5%, the next slice to $250,000 at 1%, the next to $400,000 at 1.5%, and everything above that at 2%. Toronto then charges a second, nearly identical municipal tax on top — which is why a Toronto buyer pays double what a buyer in Mississauga or Ottawa pays for the same price.

First-time buyer rebates soften this meaningfully at entry-level prices: Ontario refunds up to $4,000 (full exemption below $368,333), Toronto adds up to $4,475 against its municipal tax, BC exempts purchases up to $500,000, and PEI exempts first-time purchases under $200,000 assessed value. On the $750,000 Toronto example, a first-time buyer's bill drops from $22,950 to $14,475 — still the largest single closing cost for most buyers.

Because the tax is due in cash on closing day and cannot be added to your mortgage, budget for it alongside legal fees and adjustments — the closing costs calculator adds up the full list, and the down payment calculator shows how it affects the cash you need on hand.