Buy vs rent guide
Land transfer tax and buy vs rent
Of all the closing costs, land transfer tax varies the most from one province to the next. For a buy vs rent decision it works like a fee you pay once to enter the market, so it matters most for households that expect to stay a short time.
Where land transfer tax comes from
Provinces charge a tax or fee when title to a home changes hands. The rules differ widely. Alberta has no land transfer tax but charges Land Titles fees. Ontario, British Columbia and Manitoba use tiered schedules where each slice of the price is taxed at a rising rate. Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador and Saskatchewan each have their own approach.
Schedules and exemptions change, so treat the brackets here as a guide and check the current rule with the province, a lawyer or a notary before you budget.
The brackets the site uses
The brackets below are the ones the engine applies for the four provinces with fully verified schedules. Ontario’s schedule applies to one or two single-family residences, and Toronto charges an additional municipal tax on a similar schedule.
| Province | Schedule |
|---|---|
| Alberta | No land transfer tax. Land Titles fees of $50 plus $5 per $5,000 of value, on the transfer and again on the mortgage (since October 20, 2024). For example, $1,000,000 gives $1,050 for each. |
| Ontario | 0.5% to $55,000; 1% to $250,000; 1.5% to $400,000; 2% to $2 million; 2.5% above $2 million. First-time buyer rebate up to $4,000 (Toronto up to $4,475). |
| British Columbia | 1% on the first $200,000; 2% from $200,000 to $2 million; 3% above $2 million (5% on the residential portion above $3 million). First-time buyer and new-build exemptions exist but change; confirm the current rule. |
| Manitoba | 0% to $30,000; 0.5% to $90,000; 1% to $150,000; 1.5% to $200,000; 2% above $200,000. |
What it costs at different prices
The engine adds the mortgage registration fee in Alberta and the transfer tax everywhere else. The totals below are for the transfer-related line only, not for legal fees or other closing costs.
| Price | Alberta | Ontario | Toronto (provincial plus municipal) | British Columbia | Manitoba |
|---|---|---|---|---|---|
| $400,000 | $820 | $4,475 | $8,950 | $6,000 | $5,650 |
| $600,000 | $1,180 | $8,475 | $16,950 | $10,000 | $9,650 |
| $800,000 | $1,540 | $12,475 | $24,950 | $14,000 | $13,650 |
| $1,000,000 | $1,900 | $16,475 | $32,950 | $18,000 | $17,650 |
| $1,500,000 | $2,800 | $26,475 | $52,950 | $28,000 | $27,650 |
How the tax enters the comparison
In a buy vs rent model the tax is paid on possession day, so it reduces the cash available to invest. The renter keeps that cash and invests it. The buyer has spent it, and it must be recovered through price growth and equity before buying pulls ahead.
For a $600,000 home with 20% down, a 4.5% rate and the other default inputs of the calculator, the break-even is about 5.7 years in Alberta, 7.0 years in Ontario, 7.3 years in British Columbia and 7.2 years in Manitoba. Over ten years buying is ahead by $41,686 in Alberta against $28,541 in Ontario, $26,278 in British Columbia and $27,218 in Manitoba, with everything else held equal.
Part of those differences also reflects the legal-fee assumptions the engine uses for each province, but the tax is by far the largest piece.
Toronto and first-time buyers
Toronto adds a municipal land transfer tax on a similar schedule. On a $600,000 purchase the combined tax in the engine is $16,950, and closing costs total $21,050 without a rebate. Ten years out, buying is ahead by about $14,065 under the other default inputs, against $28,541 elsewhere in Ontario.
First-time buyer rebates change the picture. In Ontario, the engine applies a rebate of up to $4,000, which cuts the $600,000 closing costs from $12,575 to $8,575 and lifts the ten-year result to $35,374. In Toronto, the combined first-time rebate in the engine is $8,475, which brings the total back to $12,575 and the result to $28,541.
What to do with this information
If you are comparing provinces for a possible move, note that the tax is a one-time cost, not a recurring one. It makes a short stay more expensive, and it makes a longer stay look better on a per-year basis. A household moving to a high-tax province should expect to need a longer horizon before buying makes sense.
If you are comparing cities within one province, the tax is the same and other costs, such as property tax, will matter more. Use the closing costs tool for your price and province, and read closing costs and buy vs rent for the other items that make up the total.
Questions people ask
Does Alberta have land transfer tax?
No. Alberta charges Land Titles fees instead: $50 plus $5 per $5,000 of value on the transfer, and the same again on the mortgage.
Is land transfer tax paid by the buyer or the seller?
It is a buyer’s cost in the provinces covered here, paid when the transfer is registered. Your lawyer or notary will usually collect it with the other closing funds.
Do first-time buyers get a rebate?
Ontario has a first-time buyer rebate of up to $4,000 (up to $4,475 in Toronto). British Columbia has first-time buyer and new-build exemptions that change, so confirm the current rule.
What about Quebec and the Atlantic provinces?
Quebec’s “welcome tax” and the transfer charges in the Atlantic provinces and Saskatchewan work differently and are only approximate on this site. Confirm exact amounts with a lawyer or notary.
Official references
Educational information, not financial, tax, legal or mortgage advice. Rules and rates change; confirm current details with an official source or a qualified professional.