LAND TRANSFER TAX

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Land Transfer Tax

LAND TRANSFER TAX IN CANADA

When it comes to purchasing a home, Land Transfer Tax is often overlooked and not considered in the total closing costs; a mistake many first time home buyers overlook. All Canadian Provinces have a land transfer tax, with exception to Alberta and Saskatchewan, who instead impose a much smaller transfer fee.

These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

Many provinces have multi-tiered taxation systems that can be s little bit complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.

The following chart illustrates Land Transfer Taxes by province.

ONTARIO

  • Land Transfer Tax
  • Up to $55,000 X .5 % of total property value
  • From $55,000 to $250,000 X 1 % of total property value
  • From $250,000 to $400,000 X 1.5 % of total property value
  • From $400,000 up X 2 % of total property value

BRITISH COLUMBIA

  • Property Purchase Tax
  • Up to $200,000 X 1 % of total property value
  • From $200,000 up X 2 % of total property value

MANITOBA

  • Land Transfer Tax
  • Up to $30,000 N/A
  • From $30,000 to $90,000 X .5 % of total property value
  • From $90,000 to $150,000 X 1 % of total property value
  • From $150,000 up X 1.5 % of total property value

QUEBEC

  • Transfer Tax
  • Up to $50,000 X .5 % of total property value
  • From $50,000 to $250,000 X 1 % of total property value
  • From $250,000 up X 1.5 % of total property value

NOVASCOTIA

  • Land Transfer Tax
  • Halifax Metro
  • 1.5 per cent on total property value
  • Outside Halifax County
  • Check with local municipality

ALBERTA

  • Alberta does not have a land transfer tax, instead  it charge a title registration fee AND a mortgage registration fee
    • Title Registration Fee:
      • A base fee of $50 plus an additional $1 charge for every $5,000 of the fair market value of the property (rounded up to the nearest $5,000)
    • Mortgage Registration Fee:
      • $50 + $1 for every $5,000 of the mortgage loan

SASKATCHEWAN

  • No Land Transfer Tax, instead a land title fee which is often paid by your lawyer when they fill out your land title form
    • Purchase Price of Home                              Title transfer fee
      • $1 – $500                                                           $0
      • $501 – $8,400                                                  $25
      • Over $8,401                                      0.30% of property value

For more detailed information on your current or future property, check with your local municipalities and your Real Estate Representative.

Sam Elgohary

Sam Elgohary is a Real Estate Broker with Century 21 servicing his clients in the Greater Toronto Area (GTA). He has a wide range of experience in Pre-construction Development and resale and is always looking to give his clients the most up-to-date knowledge about the market to help them in making new investments or selling their homes. His close connections with builders and a wide network of agents give him a competitive edge on everything to do with Toronto Real Estate. Connect with Sam: Cell 416-565-5925. You can find Sam Elgohary in Google +