Land Transfer Tax Calculator
Many provinces in Canada charge a land transfer tax during a home purchase, whether the property is bought in cash or mortgage. This is usually based on the property value, which can make it significant, particularly for buyers that are unprepared. To know how much you need to pay, use our land transfer tax calculator.
How land transfer taxes are calculated in Canada?
Although land transfer tax rates among provinces can vary, how they are determined is usually very similar. Each province has its own property value range and their marginal tax rates. The highest marginal tax rate applied is based on the value of the property. However, the first calculated tax rate is based on the first $55,000 value of the property. The remaining balance is then subjected to the next applicable tax rate, while the balance of the property value after the two tax rates is levied on the marginal tax rate of the entire value of the property.
Ontario Land Transfer Tax
There are three tiers of home purchase price in Ontario. These are:
• First $55,000
• On $55,000 to $250,000
• On 250,000 to $400,000
• Over 400,000
The marginal land transfer tax rate, meanwhile, is from 0.5% for the first $55,000 to 2% for a property value of over $400,000. A first-time homebuyer can apply for rebates up to $2,000 provided they meet the requirements.
Alberta Land Transfer Tax
Alberta is one of the two Canadian provinces that don’t levy land transfer tax. Rather, it charges registration fees for the mortgage and the title. The title registration fee is composed of a fixed charge of $50 and additional $1 for every $5,000 of the property’s fair market value. For instance, if the property is worth $500,000, the title registration fee is $150.
BC Land Transfer Tax
British Columbia has a much simpler land transfer tax method than Ontario since it is made up of only two tiers. The first $200,000 is charged with 1% marginal tax rate while over $200,000 has a rate of 2%. First-time homebuyers can receive rebates for the property as long as the land is half a hectare or less or its fair market value is below $475,000.
Quebec Land Transfer Tax
Montreal, the province’s largest city, has a different land transfer tax rate than the rest of Quebec. It is based on different factors including the property’s purchase price and the value after being assessed by the Montreal assessment roll and after its comparative factor has been applied. The marginal tax rate, on the other hand, is 0.5% for the first $50,000 and % for over $500,000. The rest of Quebec charges 0.5% to 1.5%.
Toronto Land Transfer Tax
There are three tiers of home prices that are subjected to a marginal tax rate in Toronto. These are 0.5% for the first $55,000, 1% for $55,000 to $400,000, and 2% for over $400,000. Aside from the land transfer tax, the homebuyers also need to pay a municipal tax to lower the payments, they can apply for a refund of up $3,725 or a rebate on their home price up to $2,000.
Manitoba Land Transfer Tax
Manitoba has a fixed registration fee of $70. It also doesn’t charge any land transfer tax on the first $30,000 of the property’s value. The first $60,000 is charged with 0.5% while the succeeding two $60,000 are levied with 1% and 1.5%. The remaining balance carries a 2% marginal tax rate.
Calculate the Land Transfer Tax with our easy to use calculator and find out how much land transfer you will be required to pay in your Province. This calculator helps you find out! Enter the specifics about your land transfer tax.
Understanding how much Land Transfer Tax you will be required to pay can be daunting. Our Land Transfer Tax Calculator is based by Province to find out how much Land Transfer Tax to calculate into your budget. If you are a first time homebuyer, you may be entitled to a rebate that is something we have already taken into consideration for you. No complex formulas to figure, we’ve done that for you.
A transfer tax is payable in most provinces on any acquisition of real property and often called land transfer tax or property transfer tax, and that tax amount is based on a percentage of the purchase price of the property. The exceptions are Alberta and Saskatchewan, who instead impose a much smaller transfer fee. Ontario, British Columbia, and Prince Edward Island offer land transfer tax rebates to qualifying first-time homebuyers. Below is a list links of websites for Provinces and Municipalities for more information.
In general, if you buy land or an interest in land in Ontario, you must pay Ontario’s land transfer tax, whether or not the transfer is registered at one of Ontario’s land registry office. This is subject to possible exemptions for first time home buyers. The City of Toronto levies an additional land transfer tax, also subject to possible exemptions for first time home buyers.
Source: Ontario Ministry of Finance Website
As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province’s Land Transfer Tax.
Source: Toronto Website
When you purchase or gain an interest in property that is registered at the Land Title Office, you are responsible for paying property transfer tax. This is subject to possible exemptions for first time home buyers.
Source: Government of British Columbia Website
Under the Land Titles system in effect in Manitoba, the Province keeps a registry of land titles. Transferees are required to pay land transfer tax, with some exceptions, and a registration fee upon registration of transfer of title at the nearest land titles office.
Source: Government of Manitoba Website
In Nova Scotia, the land transfer tax (called a “deed transfer tax”) payable depends on the municipality in which the property is located.
Source: Government of Nova Scotia Website
All real property in the province is assessed annually for taxation purposes on the basis of its real and true value. Property is assessed in the name of the owner of the land as of January 1st of each year. Real Property is classified as either residential property (owner-occupied or non owner-occupied) or non-residential property. Real Property, The tax is payable at the time a deed is tendered for registration.
Source: Government of New Brunswick Website
Section 3(1) of the Real Property Transfer Tax Act states that anyone who registers a deed of conveyance in Prince Edward Island must, before the deed is registered, pay a tax computed at the rate of 1% of the greater of the sale price or the assessed value of the real property.
Source: Government of PEI Website
Newfoundland and Labrador, land transfer tax is not payable, although a considerable registration fee equal to $100 plus 0.4% of the value of the property in excess of $500 is imposed by the province. In addition, Newfoundland and Labrador charges significant fees when registering a mortgage.
Also known as welcome tax, the land transfer requires you, as a new resident to pay registration fees on the acquisition of immovable property. You may be exempt from paying such fees. You must check with your municipality to learn more about it. This tax is payable upon the registration of the transfer of the property.
Source: Government of Quebec Website
Duties on transfers of immovables are charges that are payable when the right of ownership on a property is transferred. The buyer is responsible for paying these duties. Where there is more than one buyer, they are joint and severally liable for payment of the transfer duties. Every municipality must collect duties on the transfer of any immovable situated within its territory. (Act respecting duties on transfers of immovables – R.S.Q., chapter D-15.1).
Source: City of Montreal Website