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
- Title Registration Fee:
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
- Purchase Price of Home Title transfer fee