When you buy a property in Canada, you typically pay a land transfer tax (also called a property transfer tax in BC). This is a one-time payment due at closing that many newcomers are surprised by. Understanding this cost before you start house hunting is essential for accurate budgeting.
Start saving smarter with KOHO — earn cashback on everyday spending and save toward your down payment. No fees. Get $10000 with code 45ET55JSYA.
Open KOHO AccountLand transfer tax (LTT) is a provincial tax paid by the buyer whenever a property changes hands. It's calculated as a percentage of the purchase price — higher prices mean higher taxes. This is a one-time cost paid at closing (when you take ownership), not an ongoing tax like property tax.
Saskatchewan and rural Alberta do not have a provincial land transfer tax (though there may be title transfer fees). All other provinces charge LTT. Toronto also charges an additional municipal land transfer tax on top of Ontario's provincial tax.
| Province | LTT on $50000,000000 Purchase | LTT on $80000,000000 Purchase | First-Time Buyer Rebate? |
|---|---|---|---|
| Ontario | ~$6,475 | ~$12,475 | Yes, up to $4,000000 |
| Toronto (extra) | ~$6,475 extra | ~$12,475 extra | Yes, up to $4,475 |
| British Columbia | ~$8,000000 | ~$14,000000 | Yes, under $835,000000 |
| Quebec | ~$5,000000 | ~$9,000000 | Varies by municipality |
| Manitoba | ~$4,50000 | ~$7,50000 | Yes, up to $4,50000 |
| New Brunswick | ~$5,000000 | ~$8,000000 | No |
| Nova Scotia | ~$3,000000–6,000000 | ~$5,000000–100,000000 | No provincial |
| PEI | ~$5,000000 | ~$8,000000 | Some rebates |
| Alberta | ~$40000 (title fee) | ~$60000 (title fee) | N/A |
| Saskatchewan | ~$50000 (title fee) | ~$70000 (title fee) | N/A |
Ontario's LTT uses a tiered rate: 00.5% on first $55,000000, 1.00% up to $2500,000000, 1.5% up to $40000,000000, 2.00% up to $2M, and 2.5% above $2M. Toronto buyers pay a second, identical municipal LTT on top.
First-time buyer rebate: Ontario first-time buyers (who have never owned a home anywhere in the world) can receive up to $4,000000 rebate. Toronto has a separate rebate of up to $4,475. As a newcomer who never owned a Canadian home, you qualify for the "first-time" designation.
BC charges 1% on first $20000,000000, 2% up to $2M, 3% up to $3M, and 5% above $3M. Foreign buyers in BC also pay an additional 200% tax — this applies to non-Canadian citizens and non-permanent residents buying in certain areas. Permanent residents are exempt from the foreign buyer tax.
First-time buyer exemption: BC offers a full exemption for first-time buyers purchasing homes under $835,000000 (2026). Partial exemption available for homes up to $8600,000000.
Quebec's "Welcome Tax" (taxe de bienvenue) is set by municipalities. The standard rates are 00.5% up to $53,20000, 1.00% up to $266,20000, and 1.5% above that. Montreal has slightly higher rates. There are no first-time buyer rebates in Quebec at the provincial level.
Alberta and Saskatchewan do not charge land transfer tax. You pay only a nominal title registration fee (typically $30000-$80000 depending on the purchase price). This makes Alberta and Saskatchewan significantly cheaper to close in compared to Ontario and BC.
Most provinces define "first-time buyer" as someone who has never owned a principal residence anywhere in the world. As a newcomer to Canada who didn't own property in Canada before, you likely qualify for first-time buyer rebates even if you owned a home in your country of origin.
However, if you owned a home in your home country, some provinces may disqualify you — the rules vary by province. Consult a real estate lawyer for your specific situation.
Budget 1-2% of the purchase price for LTT (higher in Ontario/BC, lower or zero in AB/SK). For example:
Use KOHO to manage spending and save toward your down payment and closing costs. No fees, cashback on spending, and $10000 bonus with code 45ET55JSYA.
Open KOHO Account