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A land transfer tax is a provincial or municipal tax levied when someone purchases a property.
The tax is normally calculated as a percentage of the property value and can be quite significant, especially on higher-priced properties.
Land transfer taxes are often a forgotten cost of purchasing a property. But, unless you qualify for a full rebate, there is virtually no way to avoid it since the tax must be paid upfront.
Below is an overview of land transfer tax rates in various provinces and territories in Canada.
Anyone and everyone who purchases a property must pay a land transfer tax to the province wherein you purchase the property, with the exception of Alberta and Saskatchewan.
Some parts of Canada, such as Toronto, Ontario, charge both a provincial and a municipal land transfer tax. Albeit, they are an exception.
A land transfer tax is typically assessed on the amount paid for the property plus the amounts remaining on any mortgage or debt assumed as part of the purchase.
The provinces of Ontario, Quebec, British Columbia, Manitoba, Nova Scotia, New Brunswick, and Prince Edward Island levy a land transfer tax, also known as property transfer tax.
The other provinces and territories do not technically levy a land transfer tax, however, these provinces charge registration fees based on the value of the property being transferred. Such fees are more modest than typical land transfer tax rates.
Land transfer taxes vary depending on where you purchase property in Canada. In Nova Scotia, for example, individual municipalities set the tax rate. In the province of Ontario, as noted above, the City of Toronto imposes a land transfer tax on top of the provincial land transfer tax.
|Newfoundland & Labrador||$898 (plus a similar amount to register a mortgage)|
|Nova Scotia||$0 to $3,000 (depending on the municipality)|
|Ontario||$1,725 (plus an additional $1,725 municipal tax if the property is located in Toronto)|
|Prince Edward Island||$2,000|
(Above calculations source: CCH)
First-time home buyers may be eligible for a refund of all or part of the tax. To help out young homebuyers, the provincial governments in Ontario, B.C. and P.E.I. offer a rebate for those purchasing their first home, assuming they meet certain conditions.
To be eligible for a land transfer tax refund:
Talk to your realtor or mortgage advisor to determine if you are eligible for the refund and how to apply.
Wondering how much your land transfer will cost you ? See the land transfer tax rates and fee for your province.
According to the Tariff of Fees Regulation, Alberta residents pay…
(Source: Government of Alberta)
(Source: Government of British Columbia)
(Source: Government of Manitoba)
Newfoundland and Labrador does not charge a land transfer tax, however it imposes a considerable registration fee equal to $100 plus 0.4% of the value of the property..
The province also charges a significant fee when registering a mortgage. Similarly, these fees are $100 plus 0.4% of the value of the mortgage in excess of $500.
(Source: Government of Newfoundland and Labrador)
In New Brunswick, the land transfer tax is currently 1% of the assessed value of the property or the purchase price, whichever is greater.
For example, on a purchase of a house assessed at $100,000, the tax payable is $1,000. The purchaser must pay this special tax or the deed cannot be registered.
(Source: Government of New Brunswick)
A Deed Transfer Tax (DTT) may be applicable to land sold in Nova Scotia. However, Deed Transfer Tax rates are set by each municipality and the DTT payable is calculated based on the sale price of the property.
(Source: Government of Nova Scotia)
Land transfer tax is not levied in Nunavut, but the territory charges registration fees based on property values.
For property valued at less than $1 million, the fees are $1.50 for every $1,000 of value, subject to a minimum fee of $60. For properties worth more than $1 million, the fee is $1,500 plus $1 for every $1,000 over $1 million.
The tax rates on land transfers in Ontario are as follows:
(Source: Government of Ontario)
The rate of Real Property Transfer Tax is 1% on the greater of:
(Source: Government of Prince Edward Island)
(Source: Government of Quebec )
Saskatchewan does not charge a land transfer tax, but does levy a registration fee determined by the value of the property. There is no fee for properties valued under $500, and a $25 fee for properties valued between $501 and $8,400. For properties valued at more than $8,400, the title transfer fee is 0.3% of the property value.
Yukon does not impose land transfer tax, and charges only nominal registration fees on the property and mortgage.
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