Canada Property Transfer Tax Guide

Property transfer tax (PTT), also called land transfer tax (LTT) in most provinces, is a provincial tax paid when ownership of real property is transferred — charged to the buyer at closing. Rates are applied on a progressive tiered basis against the purchase price. British Columbia uses the PTT name; Ontario, PEI, Nova Scotia, New Brunswick, Quebec, and others use "land transfer tax." Alberta and Saskatchewan do not charge LTT — they charge a nominal title transfer fee instead. PTT is on top of legal fees, home inspection, mortgage insurance, and other closing costs. See BC Property Transfer Tax and Ontario Land Transfer Tax.

Ontario LTT is calculated on a tiered scale for 2027: (1) 0.5% on the first $55,000; (2) 1.0% on $55,001–$250,000; (3) 1.5% on $250,001–$400,000; (4) 2.0% on $400,001–$2,000,000; (5) 2.5% on amounts above $2,000,000 (for single-family properties). Example: On an $800,000 Ontario home, LTT = $12,475. Toronto buyers pay an additional municipal LTT equal to roughly the same amount — total LTT in Toronto for an $800,000 home is approximately $24,950. First-time buyers receive a provincial rebate of up to $4,000 and a Toronto rebate of up to $4,475. Use the Canadian mortgage calculator to model total closing costs.

First-time buyer PTT/LTT exemptions or rebates by province: BC: full exemption for homes up to $500,000; partial exemption up to $525,000 (must be Canadian citizen or PR, occupy the home, never owned anywhere in the world). Ontario: rebate up to $4,000 (saves up to $8,000 in Toronto with the municipal rebate combined); applies to first-time buyers who have never owned a home anywhere. PEI: exemption on first $30,000 of purchase price for first-time buyers of principal residences. New Brunswick, Nova Scotia: no formal first-time buyer exemption, but transfer tax rates are relatively low. Quebec: welcome tax (Bienvenue tax) has no first-time buyer exemption, though some municipalities offer partial reductions. See CRA — Home Buyers' Plan for additional first-time buyer programs.

Yes — several provinces apply an additional foreign buyer surcharge on top of standard PTT/LTT. British Columbia: Additional Property Transfer Tax (APTT) of 20% for foreign nationals and corporations in designated areas (Metro Vancouver, Fraser Valley, Capital Regional District, and others). Ontario: Non-Resident Speculation Tax (NRST) of 25% on residential properties in Ontario purchased by non-Canadian citizens or non-permanent residents. Foreign buyers who later become permanent residents or citizens may apply for a rebate. The federal government's Prohibition on the Purchase of Residential Property by Non-Canadians Act (extended through 2027) bans most foreign purchases of residential property entirely. See BC Additional Property Transfer Tax.

Generally, no — land transfer tax must be paid in cash at closing and cannot be added to a standard insured or conventional mortgage. However, there are indirect ways to manage it: (1) Cash-back mortgages: some lenders offer a cash advance (typically 1–5% of the mortgage amount) that can be used for closing costs including LTT — but the cash-back is reflected in a slightly higher rate; (2) Gift funds: LTT can be covered by a documented gift from a family member, which lenders allow for closing costs; (3) Vendor take-back (VTB) mortgages: in private sales, the seller may finance a second mortgage to help cover closing costs. First-time buyer rebates reduce out-of-pocket LTT. Budget 1.5–4% of purchase price for total closing costs including LTT. See Canada housing policy update 2027.

Quebec charges a Welcome Tax (Taxe de bienvenue) — formally the Droits de mutation immobilière. Rates for 2027: (1) 0.5% on the first $52,800; (2) 1.0% on $52,801–$264,000; (3) 1.5% on $264,001–$528,000; (4) 3.0% on $528,001–$1,056,000; (5) 4.0% on amounts over $1,056,000 (higher-value properties). The tax is calculated on the greater of the purchase price or the municipal assessment value. Example: on a $600,000 Montreal condo, welcome tax is approximately $7,380. Some Montreal suburbs have higher rates on luxury property. There is no provincial first-time buyer exemption in Quebec, though some municipalities provide partial reductions. See Revenu Québec.