Paying a land transfer tax is typically required by the buyer upon the closing of a real estate transaction. In most of Canada, this tax is levied by the provincial government. Toronto is the exception: it’s the only municipality that levies additional land transfer taxes on top of the provincial tax. The tax is normally based on the amount paid for the land, though it can also be based on the fair market value in very specific situations. First-time home buyers are eligible for a refund on all or part of the tax.