Closing Costs & Insurance
Land Transfer Tax in Canada, by Province
Land transfer tax applies in most Canadian provinces and varies widely by province. See a 13-jurisdiction table, who has no tax, and who offers a rebate.
Land transfer tax is a one-time tax most Canadian buyers pay when a property changes hands, and it is usually the largest closing cost after the down payment. The amount depends on the purchase price, the province or territory, and sometimes the municipality. Five jurisdictions — Alberta, Saskatchewan, Newfoundland and Labrador, Yukon, and Nunavut — do not levy a land transfer tax at all, while Ontario, British Columbia, and Prince Edward Island offer some form of first-time buyer relief.
What land transfer tax is and what it is called
The tax is triggered when a transfer of land is registered. It is calculated on the purchase price or the assessed value, whichever is greater, and it is collected by the province, the municipality, or both depending on where you buy. The naming varies: Ontario and Manitoba call it land transfer tax, British Columbia calls it property transfer tax, Quebec's version is commonly known as the welcome tax, and the Atlantic provinces use the term deed transfer or real property transfer tax.
It is not the same as a property tax, which is an annual charge on ownership. Land transfer tax is paid once, at closing, and it is separate from legal fees and registration charges.
Land transfer tax across all 13 jurisdictions
The table below summarizes what applies in each province and territory. Rates, thresholds, and relief programs change, so treat this as a map of the structure and confirm the current rules with the relevant government.
| Jurisdiction | What applies | First-time buyer relief |
|---|---|---|
| Ontario | Provincial land transfer tax on a tiered scale, plus a municipal tax in some cities including Toronto | Provincial rebate for eligible first-time buyers; Toronto also offers a municipal rebate |
| Quebec | Municipal welcome tax on a tiered scale, set by each municipality | Limited local programs in some municipalities |
| British Columbia | Provincial property transfer tax on a tiered scale | First-time buyer exemption for eligible purchases below a threshold |
| Alberta | No land transfer tax; land titles registration and mortgage registration fees apply | Not applicable |
| Saskatchewan | No land transfer tax; land titles transfer and mortgage registration fees apply | Not applicable |
| Manitoba | Provincial land transfer tax on a tiered scale | No province-wide first-time rebate |
| Nova Scotia | Municipal deed transfer tax set by each municipality, plus a provincial non-resident deed transfer tax | No province-wide first-time rebate |
| New Brunswick | Provincial real property transfer tax, a flat percentage of the greater of price or assessed value | No province-wide first-time rebate |
| Prince Edward Island | Provincial real property transfer tax on a tiered scale | First-time home buyer exemption available subject to conditions |
| Newfoundland and Labrador | No land transfer tax; registration fees apply | Not applicable |
| Northwest Territories | Land transfer tax based on property value | No first-time rebate |
| Yukon | No land transfer tax; flat transfer and mortgage registration fees apply | No first-time rebate |
| Nunavut | No land transfer tax; land titles registration fees apply | No first-time rebate |
Jurisdictions with no land transfer tax
In Alberta, Saskatchewan, Newfoundland and Labrador, Yukon, and Nunavut, you do not pay a land transfer tax. You still pay land titles or registry fees, which are usually much smaller and are based on the property value or the mortgage amount. These fees are not zero, but they are a fraction of what a tiered transfer tax would cost on the same purchase.
Do not confuse the absence of a tax with the absence of cost. Legal fees, title insurance, and adjustments still apply, and those are covered in the closing costs guide.
First-time buyer rebates and exemptions
Relief for first-time buyers is not uniform. Ontario offers a rebate that can offset part or all of the provincial tax for eligible buyers, and Toronto has a separate municipal rebate. British Columbia offers an exemption for eligible first-time buyers below a price threshold, and Prince Edward Island offers a first-time home buyer exemption subject to residency and ownership conditions. Quebec's relief exists only in some municipalities, and Manitoba, Nova Scotia, New Brunswick, and the territories have no province-wide first-time rebate.
Eligibility rules typically require that you have never owned a principal residence, that you intend to live in the home, and that you meet residency or citizenship conditions. Some programs also cap the purchase price. The first-time buyer programs guide covers the federal programs that stack with these reliefs.
How the tax is calculated
Most tiered jurisdictions use marginal brackets, similar to income tax. The price is divided into portions, and each portion is taxed at its own rate. That means the top rate applies only to the portion of the price above the highest threshold, not to the entire purchase price.
- Tiered tax — Ontario, British Columbia, Manitoba, Prince Edward Island, and the Northwest Territories, plus Quebec's municipal tax.
- Flat tax — New Brunswick applies a single percentage to the greater of price or assessed value.
- Municipal tax — Nova Scotia's deed transfer tax is set by each municipality, so the rate depends on where the property sits.
- Non-resident surcharges — some jurisdictions add a surtax for non-residents or non-permanent residents, so the applicable rate can depend on who is buying.
Because brackets and surcharges change, estimate with the land transfer tax calculator and then confirm the figure with your lawyer or the provincial ministry before closing.
How to budget for it
Land transfer tax is due at closing, not years later, so it belongs in your upfront cash plan. A practical approach is to estimate the tax early, add it to legal fees, title insurance, and adjustments, and confirm you still have enough liquid cash after the down payment. The step-by-step buying guide places the tax in the closing timeline, and the true cost of ownership guide shows how it fits into the bigger picture.
Frequently asked questions
Which provinces have no land transfer tax?
Alberta, Saskatchewan, Newfoundland and Labrador, Yukon, and Nunavut do not charge a land transfer tax. Buyers in those jurisdictions still pay land titles or registry fees, which are based on property value or mortgage amount and are usually much smaller. Confirm the current fee schedule with the relevant registry.
Do first-time buyers get a land transfer tax rebate?
It depends on where you buy. Ontario and British Columbia offer rebates or exemptions for eligible first-time buyers, and Prince Edward Island offers an exemption subject to conditions. Toronto has a municipal rebate. Quebec has limited local programs, and most other provinces and territories offer no province-wide first-time relief.
Is land transfer tax based on the purchase price or the assessed value?
In most jurisdictions it is based on the greater of the purchase price and the assessed or fair market value at the time of transfer. That prevents buyers from understating the price. The exact rule and the valuation date vary by province, so confirm the basis used in your jurisdiction.
When do I pay land transfer tax?
It is paid at closing, when the transfer is registered. It is a one-time cost, separate from annual property tax. Because it is due on closing day, you need the cash available then, so budget for it alongside legal fees, title insurance, and other closing costs.