How to calculate your land transfer tax

The home buying journey requires a lot of preparation—both mentally and financially. You must be well-equipped to face whatever curveball that may come way. You must also be ready and informed about the costs—aside from your down payment—that you have to pay for your home purchase. One of these costs is the land transfer tax (LTT).

Also called a property tax, this levy is a tax on the purchase of a property. The amount varies and depends on the property’s value and where it is located. If you’re a first-time homebuyer, you may even enjoy a rebate or reduce payment on your LTT. This levy is sometimes tiered, requiring you to pay a certain percentage up to a particular purchase price and then a greater percentage on a certain amount on top of that.

Calculating property tax

Your LTT is calculated based on your property’s purchase price. However, how it is computed depends on where the property is located as each province in the country has its own tax rates.

To get a rough idea of the amount you have to pay for land transfer tax, use our handy calculator.

All provinces have a land transfer tax, except Albert and Saskatchewan. Both have a smaller transfer fee, instead. Toronto and Montreal also have special rules when purchasing real estate.

Alberta (land title transfer fee)

  • Title registration fee has a base fee of $50. Additional $1 for every $5,000 of the property value (rounded to the nearest $5,0000)
  • Mortgage registration fee has a base fee of $50. Additional $1 for every $5,000 of the mortgage amount (rounded to the nearest $5,0000)

Source: Land Titles Act

British Columbia

Purchase price

Tax rate

First $200,000

1%

$200,001 to $2,000,000

2%

Over $2,000,000

3%

If the property is residential and over $3,000,00

A further 2% on the portion

If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property

Source: Government of B.C.

Manitoba

Purchase price

Tax rate

First $30,000

-

The next $60,000

0.5%

The next $60,000

1%

The next $60,000

1.5%

Remaining amount

2%

Note: there is always a $70 registration fee in this province

Source: Government of Manitoba

New Brunswick

  • One percent of the assed value of the property

Source: Public Legal Education and Information Service of New Brunswick

Newfoundland and Labrador

Property or mortgage cost

Tax rate

Under $500

$100

Over $500

$100 + $0.04 for every hundred dollar over $500

Source: Government of Newfoundland and Labrador

Nova Scotia

  • Land transfer tax varies in each municipality, ranging from 0.1% to 1.5% of the purchase price
  • In Halifax, the LTT is 1.5%
  • For more information about the property tax, visit your municipal office.

Source: Government of Nova Scotia

Northwest Territories

  • $1.50 for every $1,000 or part thereof of property value (subject to a minimum charge of $100)
  • $1 for every $1,000 or part thereof of property value (for part of property value greater than $1,000,000)
  • $1 for every $5,000 or part thereof of mortgage amount (subject to a minimum charge of $80)

Source: Government of Northwest Territories

Ontario

Purchase price

Tax rate

First $55,000

0.5%

$55,000.01 to $250,000.00

1%

$250,000.01 to $400,000.00

1.5%

$400,000.01 to $2,000,000.00

2%

Over $2,000,000

2.5%

Source: Ministry of Finance Ontario

Prince Edward Island

  • 1% of the greater of purchase price or property value
  • Value is less than $30,000, no transfer tax is charged

Source: Government of Prince Edward Island

Quebec

  • Tax is collected and calculated at the municipal level
  • The based amount (i.e. the values of the property) is determined to be the greater of:
    • Property’s purchase price
    • Amount listed on the Deed of sale
    • Market value as determined by a municipal assessment roll increased by a comparative factor
  • Once the based amount is determined, the tax would follow this scale:

Property value

Tax rate

The first $50,000 ($0 to $50,000)

0.5%

On the next $200,000 ($50,001 to $250,000)

1%

On the amount over $250,000

1.5%

Source: Government of Quebec

Saskatchewan (transfer fees)

Purchase price

Title transfer fee

$1-$500

-

$501-$8,400

$25

Over $8,401

0.30% of the property value

Source: Government of Saskatchewan

Yukon

Purchase price

Tax rate

First $1,000

$6

$1,000 - $3,000

$7.50

$3,000 - $5,000

$10.50

For each $1,000 or fraction thereof over $5,000 and up to $10,000

$1.50

For each $1,000 or fraction thereof over $10,000 and up to $25,000

$0.75

For each $1,000 or fraction thereof over $25,000

$0.25

Additional fees may apply

Source: Government of Yukon

Special rules

As mentioned, the cities of Toronto and Montreal have special rules on how land transfer tax is calculated.

Toronto

  • Toronto homebuyers will incur an additional land transfer tax
  • This applies within the boundaries of Steeles Avenue to the North, Etobicoke to the West, Scarborough to the East, and Lake Ontario to the South

Purchase price

Tax rate

First $55,000

0.5%

$55,000.01 to $250,000.00

1%

$250,000.01 to $400,000.00

1.5%

$400,000.01 to $2,000,000.00

2%

Over $2,000,000

2.5%

Source: City of Toronto

Montreal

LTT calculation in Montreal is different than the rest of Quebec. The base amount used in calculation is determined to be greater of:

  • The purchase price of the property
  • The amount listed on the Deed of Sale
  • The market value of the property determined by the Montreal assessment roll increased by this comparative factor:

Year of registration

Comparative factor

2012

1.08

2011

1.00

2010

1.19

2009

1.11

2008

1.06

  • Once the value has been determined, this scale is then used:

Purchase price

Tax rate

The first $50,000 ($0 to $50,000)

0.5%

On the next $200,000 ($50,001 to $250,000)

1%

On the next $250,000 ($250,001 to $500,000)

1.5%

On the next $500,000 ($500,001 to $999,999)

2%

On the amount over $1,000,000

2.5%

Rebates

First-time homebuyers may enjoy rebate on their land transfer tax. However, there are eligibility criteria they have to fulfil.

British Columbia

  • The rebate may be received for home purchases up to $475,000
  • On homes purchased for between $476,001 to $499,999, the first-home buyer may get a partial refund equal to [($500K - fair market value) / $25K ] * LTT amount
  • To qualify for the first-time homebuyer LTT rebate you must:
    • Be a Canadian citizen or permanent resident as determined by Immigration Canada
    • Have lived in British Columbia for 12 consecutive months prior to the date the property is registered or have filed 2 income taxes in British Columbia in the 6 years before the property is registered
    • Have never owned an interest in a principal residence anywhere in the world at anytime
    • Have never received a first-time homebuyers' exemption or refund
  • Your property may qualify for the refund if:
    • The fair market value of the property is less than $475,000
    • The land is (0.5) hectares or smaller
    • The property will only be used as your primary residence

Ontario

    • The refund is equal to the full value of the LTT up to $4,000
    • The buyer must be:
  • The buyer must be a Canadian citizen or permanent resident of Canada
  • The buyer must be older than 18 years
  • The buyer must occupy the home within nine months of purchase
  • The buyer cannot have owned a home anywhere in the world
  • The buyer's spouse cannot have owned a home while being your spouse
  • The rebate will cover the fully taxed houses up to $368,333. If the purchase price is over the said amount, homebuyers may receive a maximum $4,000 refund and pay the remaining LTT balance
  • To avail of the rebate, you need to apply within 18 months after the home purchase

Prince Edward Island

  • First-time homebuyers may be exempted from paying LTT if:
    • The property value and purchase prices are below $200,000
    • Individuals are occupying home as primary residence
  • If there are multiple purchasers, they must all qualify as first-time homebuyers to avail the refund

Navigating the world of taxes is a daunting yet necessary ordeal you have to face as a homebuyer—but you don’t have to do it alone! Seek the advice of a professional, such as a finance advisor or accountant, to know more about how much you have to pay for property tax.

A mortgage broker may also be of assistance in your home buying process. He or she may help you prepare your documents, list associated costs you have to pay, and find the best mortgage products in the market that may fit your need.

Don’t have a broker yet? Find a local broker you could help you.

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