How Much Land Transfer Tax Will I Pay in Ontario or BC?
Land transfer tax is a one-time tax paid when you buy property, and Ontario and BC calculate it very differently. In Ontario, an $800,000 home incurs $12,475 in provincial tax — but in Toronto you pay the same amount again as a matching municipal tax. In BC, the same home costs $14,000 in property transfer tax. First-time buyers can get rebates: up to $4,000 in Ontario, up to $4,475 in Toronto, and a BC exemption worth up to $8,000.
Ontario: the provincial brackets
Ontario's land transfer tax applies on a marginal basis — each rate applies only to the portion of the price in that bracket:
| Purchase price portion | Rate (1–2 unit residential) |
|---|---|
| First $55,000 | 0.5% |
| $55,000–$250,000 | 1.0% |
| $250,000–$400,000 | 1.5% |
| $400,000–$2M | 2.0% |
| Above $2M | 2.5% |
Ontario's first-time homebuyer refund is worth up to $4,000, which fully covers the provincial tax on a home up to about $368,000.
Toronto's municipal tax: it doubles in the city
The City of Toronto charges its own municipal land transfer tax on top of the provincial tax, and it mirrors the Ontario brackets exactly up to $3M. Above $3M, higher luxury brackets apply (in effect from April 1, 2026). Buying in Toronto therefore means paying the provincial calculation twice over — plus Toronto's own first-time buyer rebate of up to $4,475.
BC: the property transfer tax
BC's property transfer tax is also marginal:
| Purchase price portion | Rate (residential) |
|---|---|
| First $200,000 | 1% |
| $200,000–$2M | 2% |
| $2M–$3M | 3% |
| Above $3M | 5% |
BC's first-time home buyers' exemption works on a sliding scale: a full exemption on homes at $500,000 or less, a partial exemption of $8,000 for homes up to $835,000, phasing out entirely at $860,000.
Worked example: an $800,000 home
Ontario (outside Toronto): 0.5% × $55,000 = $275; 1.0% × $195,000 = $1,950; 1.5% × $150,000 = $2,250; 2.0% × $400,000 = $8,000. Total: $12,475.
Toronto: the same $12,475 provincial tax plus a matching $12,475 municipal tax, for a total of $24,950 before rebates.
BC: 1% × $200,000 = $2,000; 2% × $600,000 = $12,000. Total: $14,000.
Frequently asked questions
Do first-time buyer rebates reduce both the provincial and municipal tax in Toronto?
Yes — eligible first-time buyers in Toronto can claim both the Ontario rebate (up to $4,000) and the Toronto rebate (up to $4,475), for a combined maximum rebate of $8,475.
Is land transfer tax due on closing day?
Yes. It is paid at closing, on top of your down payment, and it cannot be rolled into the mortgage. Budget for it separately when you save for closing costs.
What counts as a first-time buyer?
In Ontario, you must not have owned a home anywhere in the world (with some narrow exceptions), and in BC the exemption has its own eligibility rules including Canadian citizenship or permanent residency. Check the eligibility criteria on the government pages linked below before relying on a rebate or exemption.
Does the BC exemption apply to homes over $860,000?
No. The first-time exemption is fully phased out at $860,000 — a home at $861,000 pays the full tax with no reduction.
Canadian Mortgage Calculator 2026 — CA$29
Add closing costs to your plan with the Canadian Mortgage Calculator 2026.
Sources
- Government of Ontario, Land transfer tax: https://www.ontario.ca/page/land-transfer-tax
- Government of BC, Property transfer tax: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
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