How land transfer tax works in Canada
Whenever property changes hands in Canada, the buyer pays a one-off land transfer tax to the province — and it's due in cash at closing, not rolled into the mortgage. It goes by different names (Property Transfer Tax in BC, the "welcome tax" in Quebec, Deed Transfer Tax in Nova Scotia) but works the same way: usually a graduated scale where each slice of the price is taxed at a higher rate. Only Alberta and Saskatchewan skip it, charging small title-registration fees instead.
The Toronto double-up
If you buy inside the City of Toronto, you pay Ontario's provincial LTT and a municipal LTT at essentially the same rates — so the bill roughly doubles. On a $700,000 home that's about $10,475 provincially plus $10,475 municipally — close to $21,000. Toronto also adds extra "luxury" brackets above $3 million. No other Ontario municipality charges its own LTT.
First-time-buyer rebates
Relief is patchy. Ontario refunds up to $4,000 of provincial LTT and Toronto up to $4,475 of its municipal LTT — together wiping out the tax on a starter home. BC fully exempts first-time buyers up to $835,000, and PEI exempts them entirely. But Manitoba, Quebec, New Brunswick and Nova Scotia offer no first-time LTT break.
Frequently asked questions
Can I add it to my mortgage?
Not directly. Land transfer tax is due on closing day and must be paid in cash, separately from your down payment. Some buyers increase their mortgage slightly to free up cash elsewhere, but the tax itself is a closing-day expense your lawyer remits.
What about foreign buyers?
A federal ban currently restricts most non-residents from buying residential property in Canada through 2026. Where purchases are allowed, provinces like Ontario and BC add a Non-Resident Speculation Tax of 20–25% on top, and Toronto adds its own municipal version. This calculator covers the standard resident case.
How is Montréal different from the rest of Quebec?
Quebec's welcome tax is set municipally. Most cities (Quebec City, Gatineau, Laval) follow the standard provincial scale topping out at 1.5%, but Montréal adds higher brackets — 2% above $552,300, rising to 4% above $3.1m — so pricier homes cost noticeably more there. Tick the Montréal box to use its 2026 brackets. Montréal's thresholds are indexed each year.
Related
Educational estimate — not tax advice. Canada 2026 land transfer tax. Provincial scales: Ontario (0.5%–2.5% marginal, first-time rebate to $4,000); BC Property Transfer Tax (1% / 2% / 3% / +2% over $3m, first-time exemption to $835,000 with the $8,000 reduction phasing out to $860,000); Manitoba (0%–2% marginal); Quebec welcome tax (standard scale 0.5% / 1% / 1.5% on 2026 thresholds; the Montréal toggle applies that city's official 2026 brackets to 4% above $3.11m — other municipalities may add their own upper brackets); New Brunswick 1% flat; Nova Scotia 1.5% (municipal deed transfer tax varies, Halifax shown); PEI 1% (first-time buyers exempt); Newfoundland a small registration fee. Toronto municipal LTT mirrors Ontario's rates plus luxury brackets above $3m, with a first-time rebate to $4,475. Alberta and Saskatchewan charge no land transfer tax (registration fees only, not modelled). It excludes the Non-Resident Speculation Tax, newly-built-home exemptions, the Montréal Home Ownership Program rebate, registration/title fees, and annual indexation of Quebec/Montréal thresholds. Confirm with your real-estate lawyer or provincial authority.