.png)
Every Alberta real estate page mentions the no-PST advantage somewhere, usually without putting an actual number next to it. Most of what you buy already skips provincial sales tax or faces GST no matter where you live in Canada — so where does this advantage actually show up on a home purchase? Two places specifically: mortgage default insurance and land transfer costs. Both are percentage-based charges on a large purchase amount, which is exactly where a tax difference turns into real money.
What "No PST" Actually Means
Here's the tax picture across the country:
British Columbia — 7% PST
Saskatchewan — 6% PST
Manitoba — 7% RST
Quebec — 9.975% QST
Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island — 13–15% HST
Alberta and the three territories — 5% federal GST only, no provincial sales tax or HST on top
That last point is the whole story: Alberta charges neither PST nor HST — just the 5% GST everyone in Canada pays regardless of province.
Where It Actually Shows Up #1: Mortgage Default Insurance
If your down payment is under 20%, your lender requires mortgage default insurance — usually through CMHC. The premium runs roughly 0.6% to 4% of your mortgage amount and is typically rolled into the mortgage itself.
Here's where provinces diverge: Ontario, Quebec, and Saskatchewan apply provincial sales tax to that premium — and because it's a tax rather than part of the loan, it generally can't be rolled into the mortgage. It's due in cash at closing instead. (Manitoba used to charge 7% tax on this too, but eliminated it in 2020.) Alberta charges no tax on the premium at all.
A concrete example: on a $500,000 home with 5% down, the CMHC premium runs about $19,000.
Ontario (8% tax): +$1,520
Quebec (9.975% tax): +$1,895
Saskatchewan (6% tax): +$1,140
Alberta: $0
This matters most for first-time buyers specifically, since they're the ones most likely to be putting down less than 20%.
Where It Actually Shows Up #2: Land Transfer Costs
This isn't technically PST, but it's the same idea — a percentage-based government charge tied to your purchase price. Ontario, BC, and Quebec all charge a land transfer tax that rises with purchase price (Toronto layers a municipal tax on top of Ontario's provincial one). Alberta and Saskatchewan charge no land transfer tax at all.
Instead, Alberta uses flat Land Titles Office registration fees: $50 plus $5 for every $5,000 of value, applied separately to the title transfer and the mortgage registration. This rate has been in effect since October 20, 2024.
On a $700,000 purchase:
Alberta registration fees: roughly $1,360
Ontario land transfer tax (outside Toronto): roughly $10,475
Toronto, with the municipal tax layered on: the gap widens further
Like the CMHC tax difference, this is due in cash at closing — it can't be added to the mortgage.
What This Doesn't Cover
A few things worth being clear-eyed about:
This isn't a first-time-buyer-only perk — every Alberta buyer benefits from it, regardless of purchase history
It doesn't touch every cost of homeownership — property tax rates, insurance premiums, and day-to-day living costs operate on their own logic, independent of sales tax structure
The net effect is a lower baseline for closing costs specifically, not a guarantee that Alberta is cheaper across every category
Building This Into Your Numbers
In practice, plan on total Edmonton closing costs running roughly 1.5% to 4% of your purchase price — legal fees, inspection, title insurance, and the registration fees above all factor in.
A few next steps worth lining up:
Run your numbers through a mortgage calculator before you start seriously looking
Get pre-approved so you know your actual budget, not an estimate
Review a full breakdown of closing costs so nothing at the table surprises you
If you're a first-time buyer, check what CMHC and GST rebates you may also qualify for
Line up a real estate lawyer and a mortgage broker with Edmonton experience early, rather than scrambling once you're under contract
FAQ
Does Alberta really have no sales tax at all? Alberta charges no PST or HST — only the 5% federal GST that applies in every province.
Do I still pay tax on my CMHC insurance premium in Alberta? No. Unlike Ontario, Quebec, and Saskatchewan, Alberta doesn't apply provincial tax to the mortgage default insurance premium.
Is there a land transfer tax in Edmonton? No — Alberta has no land transfer tax. Instead, flat Land Titles Office registration fees apply: $50 plus $5 per $5,000 of value, charged separately on the title transfer and the mortgage registration.
Does this advantage apply only to first-time buyers? No — every Alberta buyer benefits from these savings, regardless of whether it's their first purchase.
Does no PST mean Alberta is cheaper to live in overall? Not automatically. It specifically lowers certain transaction costs tied to buying a home — day-to-day expenses, property tax, and insurance all operate independently of this.
How much should I actually budget for closing costs in Edmonton? Typically 1.5% to 4% of the purchase price, covering legal fees, inspection, title insurance, and registration fees.
Bottom Line
Alberta's no-PST advantage isn't an abstract talking point — on a $500,000–$700,000 purchase, it's realistically several thousand dollars you're not paying that a buyer in Ontario or Quebec would be. It won't make every cost of owning a home cheaper, but on the two places it actually applies — mortgage insurance tax and land transfer costs — the gap is real and worth knowing before you budget.
Ready to see what fits your numbers? Browse current Edmonton listings, including homes under $500,000 and under $700,000.
Tax rates, fee schedules, and thresholds change. This reflects information current as of the original publication — confirm current rates with a mortgage professional or lawyer before budgeting.
Haupt Phaneuf Real Estate Team | eXp Realty Canada 📍 271 Heath Rd NW, Edmonton, AB T6R 1V3 📞 (780) 993-8574