Taxes are one of the givens of life, and in Canada, the Land Transfer Tax is levied on the purchase of real estate. We are the best site online to help you prepare for your real estate purchase because we include all the information you need to estimate what you will owe at closing. Our Land Transfer Tax calculator is an especially handy tool. It allows you to quickly and conveniently estimate how much tax you will owe on your purchase. Read on to find out more about the Land Transfer Tax, and input the required information in the calculator to estimate your tax.
The Land Transfer Tax, or some variation thereof, is a tax assessed on the sale of property in Canada. All of the provinces and territories except Nunavut have a Land Transfer Tax, although the tax has a different name in certain provinces. Toronto also has a Land Transfer Tax that residents of that city pay in addition to the Land Transfer Tax for the province of Ontario. In Toronto, this tax is called the Municipal Land Transfer Tax.
The Land Transfer Tax pays for municipal and provincial services such as roads, police, the fire department, and more.
As noted, the Land Transfer Tax is usually calculated as a percentage of your home’s purchase price. If you want to know how to calculate the Land Transfer Tax, the percentages and fees for each province are listed below. Of course, it is much easier to calculate the Land Transfer Tax on your purchase if you use the handy calculator on this page.
Alberta does not charge a Land Transfer Tax. It levies a Land Transfer Fee that includes the following:
• $50 flat fee for the purchase price plus $1 for every $5,000 portion of the purchase price plus
• $50 flat fee for the mortgage plus $1 for every $5,000 portion of the mortgage principal.
* The final $5,000 portion is still assessed even if the sum of $5,000 is not actually reached.
British Columbia levies a Property Transfer Tax, but it offers relief to first-time home buyers. Here are the details:
TAX RATES
• 1 percent for homes with a fair market value of $200,000 or less
• For homes with a fair market value of more than $200,000, the tax is 1 percent of the fair market estimate of the home’s value up to $200,000 of valuation plus 2 percent of the fair market value of the home that exceeds $200,000
TAX REBATES
British Columbia also offers a tax exemption for first-time home buyers. A first-time home buyer is classified as one who is a Canadian citizen or permanent resident; one who has never owned a principal residence anywhere in the world; has never taken the first-time home buyer’s exemption; and one who has lived in British Columbia for a consecutive 12 months prior to registering the property or has filed at least two income tax returns in British Columbia as a provincial citizen or resident within six years prior to registering the property.
You qualify for a full exemption if:
• the property will be your principal residence
• the land area of your property is not greater than 0.5 hectares
• your property’s fair market value is not greater than $425,000
You can get a partial exemption on 0.5 hectares of your land but only on your principal residence if the fair market value of your property is no more than $450,000.
Recently, British Columbia introduced a First-Time New Home Buyers’ Bonus of up to $10,000 for first-time home buyers who buy or build a brand new home. If you have entered your agreement to buy or build between February 21, 2012, and April 1, 2013, you may qualify for this bonus. The amount of your bonus is determined based on your income. If you substantially remodel or renovate your home, you may qualify for this bonus as well. Renovations must have been done on at least 90 percent of your home.
The First-Time New Home Buyer’s Bonus and the Property Transfer Tax exemption can both be claimed on the same property.
TAX RATES
• 0.50 percent on the portion of the fair market value of your property that totals $30,001–$90,000 (0 percent on the first $30,000) plus
• 1 percent on the portion of the fair market value of your property that totals $90,001–$150,000 plus
• 1.5 percent on the portion of the fair market value of your property that totals $150,001–$200,000 plus
• 2 percent of the portion of the fair market value of your property that totals $200,001 and above.
New Brunswick charges a Real Property Transfer Tax of 0.5 percent on your property’s assessed value.
Property buyers in Newfoundland and Labrador pay a Registration of Deeds Prescribed Fee that is made up of:
• $100 on the first $500 of the property’s actual value plus
• $0.40 on each $100 or portion thereof on the actual value of the property that exceeds $500 plus
• $100 on the first $500 of the property’s mortgage plus
• $0.40 on each $100 or portion thereof on the remaining balance of the property’s mortgage that exceeds $500
Property buyers in the Northwest Territories pay a Land Transfer Fee of:
• $1.50 on every $1,000 portion of land value up to and including $1,000,000 plus
• $1 on every $1,000 portion of land value that exceeds $1,000,000 plus
• $1 on every $1,000 portion of the mortgage
*Note that $1,000 portions are inclusive, so the tax is levied on any amount up to $1,000.
* All buyers must pay a minimum fee of $10 even if the property valuation does not demand a fee total that high.
In Nova Scotia, individuals buying property in Halifax are charged a Deed Transfer Tax of 1.5 percent on the assessed value of the property. Rates vary for other municipalities, but most of them also charge a tax of 1.5 percent.
There is no Land Transfer Tax in Nunavut.
Ontario has both the Land Transfer Tax and an exemption for first-time home buyers. Home buyers in Toronto have an additional Municipal Transfer Tax, which will be described below.
TAX RATES
• 0.5 percent on the assessed property value up to and inclusive of $55,000 plus
• 1 percent on the assessed property value of $55,000.01 up to and inclusive of $250,000 plus
• 1.5 percent on the assessed property value of $250,000.01 up to and inclusive of $400,000 plus
• 2 percent on the assessed property value of $400,000.01 or higher, whether the property includes one home or two single family homes.
LAND TRANSFER TAX REFUND
Home buyers who meet the following criteria may qualify for a Land Transfer Tax Refund of up to $2,000:
• must be 18 years of age or older
• must live in the purchase as your principal residence within 9 months of the actual transfer
• must have never owned a home anywhere in the world (your spouse must not have owned a home either while you have been married)
The Real Property Transfer Tax rate in Prince Edward Island is 1 percent of the property’s sale price or assessed value, whichever is greater.
TAX EXEMPTIONS
Prince Edward Island, however, offers several tax exemptions for:
• first-time home buyers whose property’s assessed value is no more than $200,000; first-time home buyers are defined as those who are at least eighteen years old; who are citizens or permanent residents of Canada; who have never owned a principal residence anywhere in the world; who have never taken the first-time home buyer exemption; who will use the purchased property as their principal residence; and have maintained their principal residence in Prince Edward Island for six months prior to the purchase or have submitted a tax return in the province two out of the six years prior to the home purchase or have lived in the property being purchased as a principal residence for at least six months prior to purchase
• properties with a purchase price or real assessed value, whichever is greater, of $30,000 or less
• properties on which a deed of conveyance is conveyed to a family member of the property’s previous owner.
The Land Transfer Tax rates for Quebec are as follows:
• 0.50 percent on the portion of the fair market value of your property up to $50,000 plus
• 1 percent on the portion of the fair market value of your property that totals $50,000–$250,000 plus
• 1.5 percent on the portion of the fair market value of your property that exceeds $250,000
Saskatchewan has a Land Title Transfer Fee instead of the Land Transfer Tax. This charges you:
• $25 if the fair market value of your property is $501–$8,400 plus
• 0.30 percent on the fair market value above $8,400
Toronto, Ontario, assesses a Municipal Land Transfer Tax, but it also offers a tax rebate to qualifying buyers.
TAX RATES
• 0.5 percent on properties with a consideration value up to and inclusive of $55,000 plus
• 1 percent on properties with a consideration value of greater than $55,000 and up to and inclusive of $400,000 plus
• 2 percent on properties with a consideration value in excess of $400,000
TAX REBATES
First-time home buyers in Toronto can qualify for a Municipal Land Transfer tax rebate of as much as $3,725. You are considered a first-time home buyer if you are 18 years of age or older, occupy the property as your principal residence (must be occur within 9 months of the actual transfer), and have never owned a home anywhere in the world. Your spouse must not have owned a home either while you have been married.
Our property transfer tax calculator helps you calculate the two fees you must pay in the Yukon. Land Transfer Title Fees are assessed based on the value of your property, and Mortgage Fees are assessed based on the mortgage amount.
LAND TRANSFER TITLE FEES
• $6 for property with a value of $1,000 or less
• $7.50 for property with a value greater than $1,000 but no more than $3,000
• $10.50 for property with a value greater than $3,000 but no more than $5,000 plus
• $1.50 for each additional $1,000 of value between $5,001 and $10,000 plus
• $0.75 for each additional $1,000 of value between $10,001 and $25,000 plus
• $0.25 for each additional $1,000 of value greater than $25,000
MORTGAGE FEES
• $4.50 on the amount of the loan up to $5,000 plus
• $1.50 for each additional $1,000 from $5,000–$10,000 plus
• $0.75 for each additional $1,000 from $10,000–$50,000 plus
• $0.25 for each additional $1,000 above $50,000
* Loan and value increments include fractions of listed amounts
Of course, the easiest way to calculate your Land Transfer Tax is to fill in the calculator on this page. Add your information to figure out how much you will owe at closing for your property taxes and fees.
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