Land Transfer Tax

Land Transfer Tax

Taxes are a part of life, and there is hardly any transaction or area of life where you can escape them. This is true even when you buy a home in Canada. Home buyers throughout Canada must pay Land Transfer Taxes whenever they purchase a home. This guide is designed to help you understand the Land Transfer Tax and to calculate Land Transfer Tax assessments in all of the provinces and municipalities where this tax is required. You can also visit our Land Transfer Tax calculator page for more information and a free tool that automatically calculates the Land Transfer Tax you will be charged on the purchase of a home.

What is the Land Transfer Tax?

Simply put, the Land Transfer Tax is a tax assessed by provincial, territorial and municipal governments on the purchase of real estate in Canada. Also known as the Property Transfer Tax or the Land Purchase Tax, the Land Transfer Tax helps pay for governmental services. In most cases, paying the tax is the responsibility of the buyer, so it is included in the total purchase price of a home.

The Land Transfer Tax is usually assessed as a percentage of the home purchase price. All of the provinces and territories in Canada assess a Land Transfer Tax of some kind on the purchase of real estate. Alberta and Saskatchewan, however, call their assessment a Land Transfer Fee, and it is much less than the taxes imposed in other provinces and territories.

As with most taxes, the Land Transfer Tax is not popular. However, as “taxes are what we pay for civilized society” (Oliver Wendell Holmes, Jr.), Canadian residents actually enjoy several benefits due to this tax. In the first place, the tax pays for vital government services such as healthcare, roads and much more. Second, the Land Transfer Tax helps to keep annual property tax rates lower than they would be than if there were no taxes assessed on the purchase of property in Canada.

Finally, several provincial governments, having recognized the benefits of encouraging home ownership, have put Land Transfer Tax rebates into place to make buying a home less expensive through offsetting at least part of the cost of the tax. In most cases, these rebates are available only for first-time home buyers who meet certain requirements.

Who Pays the Land Transfer Tax?

As noted at the start of this guide, home buyers pay the Land Transfer Tax in Canada. However, sometimes home buyers can negotiate with the person selling the home to pay the tax as part of the sale terms outlined in the offer to purchase.

First-Time Home Buyer Rebates

If you are a first-time home buyer, many provinces offer you a Land Transfer Tax rebate or refund of some kind. This is a tax break that reduces or even eliminates the Land Transfer Tax that you must pay. For the purpose of the chart below, a first-time home buyer is someone who meets these qualifications:

• Age: must be at least eighteen years old
• Citizenship: must be a citizen or permanent resident of Canada
• Real Estate Experience: cannot have ever owned a home anywhere in the world
• Residence: must make the home your principal residence

Some localities have additional standards that you must meet to qualify for the tax rebate. Locality-specific rules are listed below each principality or city in the following chart.

Provincial and Municipal Tax Rates and Examples

This useful chart will help you calculate your required Land Transfer Tax. You can also visit our Land Transfer Tax calculator page and use our handy calculator. However you figure your tax, make sure to determine it ahead of time so that you know how much money you must save for your home purchase.

ALBERTA

Tax Name:

Land Transfer Fee

Rebate:

No rebates or refunds are offered on the Land Transfer Fee in Alberta.

Tax Rates:

• $100 flat fee ($50 if purchase is made without a mortgage) plus
• $1 per every $5,000 or portion thereof of the home price plus
• $1 per every $5,000 or portion thereof of the mortgage principal balance

Calculation Example: A house with a purchase price of $200,000 and a mortgage of $150,000 will have a total Land Transfer Fee of $100 (flat fee) + $40 {$1 x ($200,000/$5,000)} + $30 {$1 x ($150,000/$5,000)} = $170.

BRITISH COLUMBIA

Tax Name

Property Transfer Tax

Rebate

You qualify for a full Property Transfer Tax exemption if you:

• are a first-time home buyer according to the rules outlined in the preceding section of this resource page
• have never taken the first-time home buyer’s exemption before
• have lived in British Columbia for at least 12 consecutive months before you register the property or have filed at least two tax returns as a provincial resident or citizen within the six years immediately preceding the registration of the property in your name
• buy a property with a land area of 0.5 hectares or less.
• buy a property that has a fair market value of no more than $425,000

You can get a partial exemption on the first 0.5 hectares of land if your property valuation is greater than $425,000 as long as the fair market value of your property is no more than $450,000. The other conditions listed above still apply.

Depending on their income, first-time home buyers in British Columbia who buy or build a brand new home between February 21, 2012, and April 1, 2013, may qualify for a First-Time New Home Buyers’ Bonus check of up to $10,000 in addition to the tax exemption. A substantially remodeled or renovated home in which at least 90 percent of the home has been renovated also qualifies first-time home buyers for this bonus.

Tax Rates

• 1 percent of the home’s fair market value up to and including $200,000 plus
• 2 percent of the home’s fair market value in excess of $200,000

Calculation Example

On a home in British Columbia with a fair market value of $300,000, your Land Transfer Fee is $2,000 (0.01 x $200,000) + $2000 {0.02 x ($300,000 – $200,000)} = $4,000.

If you are a first-time home buyer in the above scenario, you will not pay any Property Transfer Tax. The fair market value of the property is less than $425,000, so you qualify for the full exemption.

MANITOBA

Tax Name

Land Transfer Tax

Rebate

No Land Transfer Tax rebate is offered in Manitoba.

Tax Rates

• 0.5 percent on the fair market value of your home of $30,001–$90,000 plus
• 1 percent on the fair market value of your home of $90,001–$150,000 plus
• 1.5 percent on the fair market value of your home of $150,001–$200,000 plus
• 2 percent on the fair market value of your home of $200,001 and above

Calculation Example
On a property with a fair market value of $175,000, you will pay a Land Transfer Tax of $300 {0.005 x ($90,000 – $30,000)} + $600 {(0.01 x ($150,000 – $90,000)} + $375 (0.015 x {(175,000 – $150,000)} = $1,275.

NEW BRUNSWICK

Tax Name

Real Property Transfer Tax

Rebate

No Real Property Transfer Tax rebate is offered in New Brunswick.

Tax Rates

0.5 percent tax on the assessed value of the property you buy.

Calculation Example

For a property with an assessed value of $200,000 in New Brunswick, the Real Property Transfer Tax is $1,000 (0.005 x $200,000).

NEWFOUNDLAND AND LABRADOR

Tax Name

Registration of Deeds Prescribed Fee

Rebate

No Registration of Deeds Prescribed Fee rebate is offered in Newfoundland and Labrador.

Tax Rates

• $100 on up to $500 of the actual value of the property plus
• $0.40 on each $100 (or portion thereof) on the property’s actual value in excess of $500 plus
• $100 on up to $500 of the mortgage on the property plus
• $0.40 on each $100 (or portion thereof) of the mortgage’s balance in excess of $500

Calculation Example
On a property with an actual value of $100,000 and a mortgage of $80,000, your Registration of Deeds Prescribed fee is $100 (first $500 of value fee) + $398 {$0.40 x ($99,500/$100)} + $100 (first $500 of mortgage fee) + $318 {$0.40 x ($79,500/$100)} = $916.

NORTHWEST TERRITORIES

Tax Name

Land Transfer Fee

Rebate

No Land Transfer Fee rebate is offered in the Northwest Territories.

Tax Rates

• $1.50 on every $1,000 or portion thereof of the land value up to and including $1,000,000 plus
• $1 on every $1,000 or portion thereof of the land value up to in excess of $1,000,000 plus
• $1 on every $1,000 or portion thereof of the mortgage balance

Note that every property buyer will pay a pay a minimum fee of $10 even if the value of your property and mortgage call for a fee less than $10 according to the rates listed above.

Calculation Example
On a property with a land value of $1,500,000 and a mortgage of $1,000,000, you will pay a Land Transfer Fee of $1,500 {$1.50 x ($1,000,000/$1,000)} + $500 {$1 x ($500,000/$1,000)} + $1,000 {$1 x ($1,000,000/$1,000)} = $3,000.

NOVA SCOTIA

Tax Name

Deed Transfer Tax

Rebate

There is no Deed Transfer Tax rebate in Novia Scotia.

Tax Rates

In Nova Scotia, each municipality has a different Deed Transfer Tax rate. Most municipalities, however, levy the rate charged in Halifax, which is 1.5 percent on the assessed value of the property purchased.

Calculation Example

In Halifax, Nova Scotia, your Deed Transfer Tax on a property with an assessed value of $200,000 is $3,000 (0.015 x $200,000).

NUNAVUT

Tax Name

There is no Land Transfer Tax in Nunavut.

Rebate

Not applicable

Tax Rates

Not applicable

Calculation Example

Not applicable

ONTARIO

Tax Name

Land Transfer Tax

Rebate

Ontario offers a Land Transfer Tax Refund of up to $2,000 to qualified first-time home buyers. You qualify if you:

• are a first-time home buyer according to the criteria listed in the preceding section of this resource page
• make the home your principal residence within 9 months of the purchase
• your spouse has not owned a home while you have been married

Tax Rates

• 0.5 percent on your property’s assessed value up to $55,000 (inclusive) plus
• 1 percent on your property’s assessed value of $55,000.01–$250,000 (inclusive) plus
• 1.5 percent on your property’s assessed value of $250,000.01–$400,000 (inclusive) plus
• 2 percent on your property’s assessed value of $400,000.01 or higher

Calculation Example

On a property in Ontario with an assessed value of $400,000, you will pay a Land Transfer Tax of $275 (0.005 x $55,000) + $1,950 {0.01 x ($250,000 – $55,000)} + $2,250 {0.015 x ($400,000 – $250,000)} = $4,475. If you qualify for the full Land Transfer Tax refund, your Land Transfer Tax will be $2,475 ($4,475 – $2,000).

PRINCE EDWARD ISLAND

Tax Name

Real Property Transfer Tax

Rebate

Prince Edward Island offers a Real Property Transfer Tax exemption on three major property categories:

• first-time home buyers who have purchased a property with an assessed value of $200,000 or less (In addition to the qualifications for the first-time home buyer given in the preceding section of this resource page, you must also have maintained your principal residence in the province for at least six months prior to your purchase, have submitted tax returns in at least two of the six years preceding your purchase, or have lived in the residence or on the property for at least six months before you buy it.)
• all properties that have a real assessed value or purchase price, whichever sum is larger, of $30,000 or less
• all properties where a deed of conveyance is transferred to one of the family members of the property’s previous owner

Tax Rates

1 percent of the property’s assessed value or the purchase price of the property, whichever figure is greater

Calculation Example

On a home purchase in Prince Edward Island when the property has an assessed value of $150,000 and a purchase price of $175,000, your Real Property Transfer tax is $1,750 (0.01 x $175,000). If you qualify for the first-time home buyer exemption, your Real Property Transfer Tax is $0.

QUEBEC

Tax Name

Land Transfer Tax

Rebate

There is no Land Transfer Tax rebate offered in Quebec.

Tax Rates

• 0.5 percent on your property’s fair market value up to $50,000 plus
• 1 percent on your property’s fair market value in the range of $50,000–$250,000 plus
• 1.5 percent on your property’s fair market value in excess of $250,000

Calculation Example

On a home you buy in Quebec with a fair market value of $300,000, you will pay a Land Transfer Tax of $250 (0.005 x $50,000) + $2,000 {0.01 x ($250,000 – $50,000)} + $750 {0.015 x ($300,000 – $250,000)} = $3,000.

SASKATCHEWAN

Tax Name

Land Title Transfer Fee

Rebate

There is no Land Title Transfer Fee rebate or refund offered in Saskatchewan.

Tax Rates

• $25 on your property’s fair market value of $501–$8,400 plus
• 0.3 percent of your property’s fair market value above $8,400

Calculation Example

If the fair market value of the home you buy in Saskatchewan is $100,000, then your Land Title Transfer Fee is $25 (fee on first $8,400 of the fair market value) + $274.80 {0.003 x ($100,000 – $8,400)} = $299.80.

TORONTO

Tax Name

Municipal Land Transfer Tax

Rebate

Toronto offers a Municipal Land Transfer Tax Rebate of up to $3,725 to those who:

• are first-time home buyers according the criteria outlined in the preceding section of this resource page
• will make the purchased property your principal residence within 9 months of the property being transferred into your name
• if married, have a spouse who has never owned a home during your marriage

Tax Rates

• 0.5 percent on your property’s consideration value up to $55,000 (inclusive)
• 1 percent on your property’s consideration value of $55,000.01–$400,000 (inclusive)
• 2 percent on your property’s consideration value of greater than $400,000

Calculation Example

On a home in Toronto that has a consideration value of $450,000, your Municipal Land Transfer Tax will be $275 (0.005 x $55,000) + $3,450 {0.01 x ($400,000 – $55,000)} + $1,000 {(0.02 x ($450,000 – $50,000)} = $4,725. If you qualify for the full Municipal Land Transfer Tax Rebate, your Municipal Land Transfer Tax will be $1,000 ($4,725 – $3,725).

YUKON

Tax Name

Land Transfer Title Fee

Rebate

There is no Land Transfer Title Fee Rebate in the Yukon.

Tax Rates

In the Yukon, you pay fees that are based on the property value and the mortgage amount. Here are those fees:

Property Land Transfer Title Fees on property values* of $3,000 or less:

• Property valuation of $1,000 or less — $6 Land Transfer Title Fee
• Property valuation of $1,000–$3,000 — $7.50 Land Transfer Title Fee

Property Land Transfer Title Fees on property values* that are greater than $3,000:

• $10.50 if the property valuation is greater than $3,000 but less than $5,000 plus
• $1.50 for every $1,000 of valuation from $5,001–$10,000 plus
• $0.75 for every $1,000 of valuation from $10,001–$25,000 plus
• $0.25 for every $1,000 of valuation that is greater than $25,000

Mortgage Land Transfer Title Fees on mortgage* amounts:

• $4.50 on the amount of the loan up to $5,000 plus
• $1.50 for every $1,000 of mortgage principal from $5,001–$10,000 plus
• $0.75 for every $1,000 of mortgage principal from $10,001–$50,000 plus
• $0.25 for every $1,000 of mortgage principal above $50,000

*The $1,000 increments include portions thereof. For example, a property valuation of $6,053 has two $1,000 increments of value that will be used to calculate the Land Transfer Title Fee.

Calculation Example

In the Yukon, the Land Transfer Title Fee on a property with a value of $11,000 and a mortgage of $7,000 would be $10.50 (base property valuation fee) +$7.50 ($1.50 x 5) + $0.75 ($0.75 x 1) + $4.50 (base mortgage valuation fee) + $3.00 ($1.50 x 2) = $26.25.

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