Land Transfer Tax in Toronto Ontario & Other Provinces

Your guide to provincial and municipal land transfer tax and tax rebate

What is Land Transfer Tax?

Land transfer tax (LTT) 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.

LTT is 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.

Who pays land transfer tax?

Anyone and everyone who purchases land, or a beneficial interest in land, must pay land transfer tax to the province wherein you purchase the property.

Some parts of Canada, such as Toronto, Ontario, charge both a provincial and a municipal land transfer tax. Albeit, they are an exception.

How is Land Transfer Tax calculated?

How is Land Transfer Tax calculated?

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.

What is an example of Land Transfer Tax?

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 LTT.

Land transfer tax varies 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, the City of Toronto imposes land transfer tax on top of the provincial land transfer tax.

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Examples of land transfer taxes in various provinces and territories of Canada for a $200,000 property

Alberta $90
British Columbia $2,000
Manitoba $1,650
New Brunswick $1,000
Newfoundland & Labrador $898 (plus a similar amount to register a mortgage)
Northwest Territories $300
Nova Scotia $0 to $3,000 (depending on the municipality)
Nunavut $300
Ontario $1,725 (plus an additional $1,725 municipal tax if the property is located in Toronto)
Prince Edward Island $2,000
Quebec $1,750
Saskatchewan $600
Yukon $73

(Above calculations source: CCH)

Land Transfer Tax Refunds for First-Time Homebuyers

Land Transfer Tax Refunds for First-Time Homebuyers

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:

  • You must be at least 18 years of age
  • You have not owned a home or an interest in a home anywhere in the world
  • Your spouse has not owned a home or interest in a home, anywhere in the world while he or she was your spouse.

Talk to your realtor or mortgage advisor to determine if you are eligible for the refund and how to apply.

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Alberta — Land Titles Act Tariff of Fees Regulation

According to the Tariff of Fees Regulation, Alberta residents pay…

  • $50 plus $1 for each $5,000 of land value and mortgage value

(Source: Government of Alberta)

British Columbia Land Property Transfer Tax Rates

  • 1% on the first $200,000 of fair market home value, plus
  • 2% on the portion greater than $200,000 and up to $2 million, plus
  • 3% on the property value greater than $2 million, and
  • 2% on the value greater than $3 million(effective February 21, 2018).

(Source: Government of British Columbia)

Manitoba Land Transfer Tax

  • Zero tax on the first $30,000 of home value
  • 0.5% on the next $60,000 (i.e. $30,001 to $90,000)
  • 1% on the next $60,000 (i.e. $90,001 to $150,000)
  • 1.5% on the next $50,000 (i.e. $150,001 to $200,000)
  • 2% on in the property valuation greater than $200,000

(Source: Government of Manitoba)

Newfoundland and Labrador Mortgage Registration Fees

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)

New Brunswick Real Property Transfer Tax

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)

Northwest Territories Land Transfer Title

  • Where the value of the land is less or equal to $1 million, $1.50 for each $1,000 of value or part (minimum fee $100).
  • Where the value of the land is greater than $1 million, $1,500 plus $1 for each $1,000 of value or part.

(Source: CMHC)

Nova Scotia Deed Transfer Tax

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)

Nunavut

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.

(Source: CCH)

Ontario Land Transfer Tax Rates

The tax rates on land transfers in Ontario are as follows:

  • 0.5% on amounts up to and including $55,000
  • 1.0% on amounts exceeding $55,000, up to and including $250,000
  • 1.5% on amounts exceeding $250,000, up to and including $400,000
  • 2.0% on amounts exceeding $400,000
  • 2.5% on amounts exceeding $2 million, where the land contains one or two single-family residences

(Source: Government of Ontario)

Prince Edward Island Real Property Transfer Tax

The rate of Real Property Transfer Tax is 1% on the greater of:

  • the purchase price of the real property; or
  • the assessed value of the real property.

(Source: Government of Prince Edward Island)

Québec Real Estate Transfer Law

  • Province of Québec, outside of Montréal :
  • 0.5% on the first $50,900
  • 1.0% on the amount from $50,900.01 to $254,400
  • 1.5% on the amount exceeding $254,400
  • The City of Montreal levies its own land transfer tax, based on the following rates:
  • 0.5% on the first $50,900
  • 1.0% on the amount from $50,900 to $254,400
  • 1.5% on the portion from $254,400 to $508,700
  • 2% on the amount from $508,700 to $1,017,400
  • 2.5% on the amount exceeding $1,017,400

(Source: Government of Quebec )

Saskatchewan

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.

(Source: CCH)

Yukon

Yukon does not impose land transfer tax, and charges only nominal registration fees on the property and mortgage.

Visit our Mortgage Guides for more comprehensive information on getting the best mortgage rates in Canada.

(Source: CCH)

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