Land Transfer Tax by Province 2026: Rates & First-Time Rebates

When you buy a home in Canada, most provinces charge a one-time land transfer tax (LTT) — also called property transfer tax (PTT) in BC — on closing. It is usually one of the largest closing costs, and the rules differ sharply by province and even by city. Here is the 2026 picture, including first-time buyer rebates.

How Land Transfer Tax Works

LTT is a percentage of the property’s purchase price, charged in graduated brackets like income tax. The buyer pays it at closing, on top of the price. Some provinces (Alberta and Saskatchewan) charge no LTT at all — only smaller registration or title fees.

Ontario Land Transfer Tax (2026)

Ontario uses graduated marginal rates on the purchase price:

First-time buyer rebate: up to $4,000 off the provincial LTT. A first-time buyer purchasing up to about $368,000 pays no provincial LTT; above that, they pay the LTT minus $4,000.

Estimate your exact bill — including the Toronto MLTT and both rebates — with the Ontario land transfer tax calculator.

Toronto Municipal Land Transfer Tax (MLTT)

Buyers in the City of Toronto pay a second land transfer tax on top of the provincial one, broadly mirroring the Ontario brackets (0.5% to 2.5%). Effective April 1, 2026, Toronto added steeper upper tiers for luxury homes over $3 million, rising to as high as 8.6% for ultra-high-value properties.

Toronto first-time buyer rebate: an additional municipal rebate of up to $4,475, stacked on top of the provincial $4,000.

Worked example — $800,000 Toronto home, first-time buyer:

• Provincial LTT: roughly $12,475, less $4,000 rebate = $8,475
• Municipal MLTT: roughly $12,475, less $4,475 rebate = $8,000
• Total LTT ≈ $16,475

A non-first-time buyer would pay close to $24,950 on the same property.

British Columbia Property Transfer Tax (2026)

BC’s PTT uses these rates:

First-time buyer exemption: homes priced up to $835,000 get a full exemption on the first $500,000 of value, with a partial exemption phasing out up to $860,000. This is far more generous than Ontario’s flat $4,000 rebate.

Other Provinces at a Glance

Quebec’s “taxe de bienvenue” is set municipally and varies widely; Montreal applies higher brackets for expensive homes. Always check the specific city, or use the Quebec welcome tax calculator, which applies the Montreal, Quebec City, Laval, Gatineau, Longueuil and Sherbrooke schedules.

New Brunswick and Prince Edward Island both charge a single flat rate with no brackets, so the bill scales in a straight line: 1% of $400,000 is $4,000, and 1% of $900,000 is $9,000. Neither province has a higher tier for expensive homes. New Brunswick’s rate has been 1% since 1 April 2016 (it was 0.5% before that, and 0.25% before June 2012), and it applies to the greater of the price you paid and the property’s assessed value — so an under-market family sale is still taxed on the assessment.

First-Time Buyer Rebates Summary

• Ontario: up to $4,000 provincial; Toronto adds up to $4,475 municipal.
• BC: PTT exemption on the first $500,000 of value (worth up to $8,000) for homes up to $835,000, phasing out to $860,000.
• PEI: a full waiver of the entire tax for qualifying first-time buyers, with no price ceiling — the regulation that once set a maximum was revoked in 2016. You must occupy the home as your principal residence for at least 183 consecutive days or the tax becomes payable.
• Quebec: no exemption from the welcome tax, but from 2026 a refundable tax credit refunds 100% of the first $5,000 of duties and 25% of the next $3,500 (up to $5,875). It is reduced by 2.35% of the tax base above $750,000 and is nil from $1,000,000. The buyer must not have owned a home they lived in at any time since January 1 of the fourth calendar year before the purchase (January 1, 2022 for a 2026 purchase); claim it on the Quebec return or ask Revenu Québec for an advance payment.
• New Brunswick: no first-time buyer relief from the transfer tax.
• No LTT: Alberta and Saskatchewan charge none, so there is nothing to rebate.

Eligibility generally requires that you (and often your spouse) have never owned a home anywhere, occupy the property as your principal residence, and be a Canadian citizen or permanent resident.

Don’t Forget the GST/HST on New Builds

Land transfer tax is separate from GST/HST. New-construction homes also attract GST/HST (with a possible new housing rebate), while resale homes are generally exempt. Factor both into your closing budget.

Key Takeaways

1. LTT is a major closing cost — often 1–3% of the price, doubled inside Toronto.
2. Toronto buyers pay twice (provincial + municipal), with new luxury tiers from April 1, 2026.
3. BC’s first-time exemption is the most generous; Ontario’s is a flat $4,000.
4. Alberta and Saskatchewan charge no land transfer tax at all.

Estimate your exact land transfer tax — by province, city, and first-time-buyer status — with the property transfer tax calculator.

Sources

• Ontario — Calculating land transfer tax
• City of Toronto — Municipal Land Transfer Tax rates and fees
• Province of British Columbia — Property transfer tax
• New Brunswick — Real Property Transfer Tax Act, s.2(1.03)
• Prince Edward Island — Real Property Transfer Tax Act, s.3(1) and s.5