Land transfer tax calculator
One of the biggest closing-day costs in Canada - and one of the most commonly forgotten. Estimate yours below.
Land transfer tax calculator (Canada)
When you buy a home in most of Canada, the province (and sometimes the city) charges a one-time tax based on the price. It is due in cash on closing day, it cannot usually be rolled into your mortgage, and on a typical home it runs into the thousands - so it deserves a line in your budget from day one.
How it works
Land transfer tax is tiered, like income tax: a low rate on the first slice of the price and higher rates on the amounts above each threshold. Ontario, for example, runs from 0.5% up to 2.5%, and Toronto layers a second municipal tax on top that roughly doubles the bill. British Columbia uses its own 1% to 5% scale. Alberta and Saskatchewan skip the tax entirely and charge small registration fees instead.
First-time buyer relief
Most provinces with the tax offer a rebate or exemption for first-time buyers. Ontario refunds up to $4,000, Toronto adds up to $4,475, and BC can wipe it out completely under its price cap. These rebates are claimed at closing through your lawyer - the calculator above estimates the net amount after the rebate you select.
Budget it with your other closing costs
Land transfer tax sits alongside legal fees, title insurance and your first-year ownership costs. Once you know it, check what you can actually borrow with the qualification calculator. If you are putting less than 20% down, also see how much CMHC insurance adds.
Frequently asked questions
What is land transfer tax?
A one-time tax most Canadian provinces charge when property changes hands, calculated as a percentage of the purchase price on a sliding scale. It is due on closing day and generally cannot be added to your mortgage, so you need the cash on hand.
How much is land transfer tax in Ontario?
Ontario uses a sliding scale from 0.5% on the first $55,000 up to 2.5% on amounts over $2 million. On a $650,000 home that is roughly $9,475. Buyers in Toronto pay a municipal land transfer tax on top, roughly doubling it.
Do first-time buyers get a rebate?
Yes. Ontario refunds up to $4,000, Toronto up to an additional $4,475, and British Columbia fully exempts qualifying first-time buyers on homes up to $500,000 (phasing out by $525,000). Eligibility rules apply - confirm with your province.
Does Alberta have land transfer tax?
No. Alberta and Saskatchewan do not charge land transfer tax; instead you pay smaller land title and mortgage registration fees, usually a few hundred dollars.
Can I add land transfer tax to my mortgage?
Almost never. Unlike CMHC insurance, land transfer tax must be paid in cash at closing. It is one of the largest closing costs, so include it in your upfront budget alongside legal fees and the down payment.