Land transfer tax & closing costs

How land transfer tax works in Canada

When you buy a home, most provinces charge a one-time land transfer tax based on the purchase price, paid on closing day. It is usually your single largest closing cost, and it catches a lot of first-time buyers off guard because it cannot be rolled into the mortgage, you pay it in cash. The rate is marginal, meaning each slice of the price is taxed at its own rate.

Provincial differences

• Ontario charges 0.5% to 2.5% across brackets, with a first-time buyer rebate of up to $4,000.
• Toronto adds a municipal land transfer tax that roughly doubles the bill, with its own first-time rebate of up to $4,475.
• British Columbia charges 1% to 5%, with a full first-time buyer exemption on qualifying homes up to $835,000.
• Alberta has no land transfer tax at all, just small land title and mortgage registration fees.

Once you know your closing costs, see what you can afford with our pre-qualification calculator, or estimate your payment with the mortgage payment calculator.

This tool gives a close estimate. Your lawyer confirms the exact land transfer tax, and legal, title and inspection fees vary. Mortgage Momentum helps you plan the full cash-to-close so there are no surprises.