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.