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Content last updated: July 28, 2020
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a percentage of property value, using asking price as a close estimate. Homebuyers in Toronto, however, also incur an additional municipal tax.
To help offset the cost, Ontario, British Columbia, Prince Edward Island, and the City of Toronto offer land transfer tax rebates for first-time homebuyers.
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Land transfer taxes are calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, as do some municipalities. Use the calculator above to find the land transfer tax based on your location, or keep reading to find out how land transfer tax is calculated where you live.
Ontario land transfer tax rates were last updated in 2017. This change introduced a $2 million tax bracket, but left the marginal rates and cutoffs for the lowest four price brackets unchanged. A non-resident speculation tax of 15% was also added for the Greater Golden Horseshoe Region.
Purchase Price of Home | Marginal Tax Rate | |||
---|---|---|---|---|
First $55,000 | 0.5% | |||
$55,000.01 to $250,000.00 | 1.0% | |||
$250,000.01 to $400,000.00 | 1.5% | |||
$400,000.01 to $2,000,000.00 | 2.0% | |||
Over $2,000,000 | 2.5% |
To see how land transfer tax is calculated on a home purchased in Ontario, watch the video below. Note that while this video was created before the $2 million bracket was introduced, the calculations are still correct.
The Ontario land transfer tax refund is equal to the full value of the land transfer tax up to a maximum of $4,000.
Based on Ontario land transfer tax rates, the refund will cover the fully taxed amount on houses up to $368,000. For houses over $368,000, homebuyers will receive the maximum $4,000 refund and have to pay the remaining LTT balance. To obtain this refund, you need to apply within 18 months after the purchase of the home.
If purchasing a home in Toronto, there is an additional municipal land transfer tax. Toronto’s land transfer tax applies within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border and Lake Ontario as the South border.
Purchase Price of Home | Marginal Tax Rate | |||
---|---|---|---|---|
First $55,000 | 0.5% | |||
$55,000.01 to $250,000.00 | 1.0% | |||
$250,000.01 to $400,000.00 | 1.5% | |||
$400,000.01 to $2,000,000.00 | 2.0% | |||
Over $2,000,000 | 2.5% |
First-time homebuyers in Toronto of new and resale homes are eligible to receive a rebate up to a maximum of $4,475.
Land Transfer Taxes in British Columbia are calculated in a similar way to Toronto, though with fewer property value brakcets. BC also levies a much higher marginal tax rate on high value residential homes.
Purchase Price of Home | Marginal Tax Rate | ||||
---|---|---|---|---|---|
First $200,000 | 1.0% | ||||
On $200,001 to $2,000,000 | 2.0% | ||||
Over $2,000,000 | 3.0% | ||||
Over $3,000,000 | A further 2% for residential properties (5% total) |
First-time homebuyers are eligible to receive a full land transfer tax refund on homes purchased for up to $500,000. On homes purchased for between $500,00 - $525,000 the first-time homebuyer will be eligible for a partial refund.
You can qualify for the first-time homebuyer land transfer tax rebate if:
Your property qualifies for the first-time homebuyer land transfer tax rebate if:
For more information, see the Government of British Columbia website.
Alberta does not have a land transfer tax, however, it does charge a Trasfer of Land registration fee AND a mortgage registration fee.
Trasfer of Land registration fee: This administration fee covers the actual name change of the land. There's a base fee of $50 plus an additional $2 charge for every $5,000 of the fair market value of the property (or part thereof).
Though Saskatchewan does not have a land transfer tax, they do have a land title fee. This fee is often paid by your lawyer when they are filling out the land title form on your behalf. For most properties, the Saskatchewan title transfer fee is 0.3% of the property's value.
Purchase Price of Home | Title transfer fee | |||
---|---|---|---|---|
$0 - $500 | $0 | |||
$501 - $8,400 | $25 | |||
Over $8,401 | 0.30% of property value |
Saskatchewan also levies a $160 fee for the registration of a new mortgage.
In Manitoba, there is a progressive land transfer tax based on property price, along with a set title registration fee. Here are the current land transfer tax rates for Manitoba:
Property value | Marginal Tax rate | |||
---|---|---|---|---|
On the first $30,000 | No tax | |||
$30,001 to $90,000 | 0.5% | |||
$90,001 to $150,000 | 1.0% | |||
$150,001 to $200,000 | 1.5% | |||
On amounts above $200,000 | 2.0% |
There is no land transfer tax rebatefor first-time home buyers in Manitoba.
Land transfer tax in Quebec (taxe de bienvenue) is different outside of Montreal. The tax is collected and calculated at the municipal level. The base amount (i.e. the value of the property) used in the calculation is first determined to be the greater of:
Once the base amount is determined, land transfer tax in Quebec is then governed by the following scale:
Value of property | Marginal Tax Rate | |||
---|---|---|---|---|
The first $50,000 ($0 to $50,000) | 0.5% | |||
On the next $200,000 ($50,001 to $250,000) | 1.0% | |||
On the amount over $250,000 | 1.5% |
The calculation for land transfer tax in Montreal is a little different than the rest of Quebec. The base amount (i.e. the value of the property) that is used in the calculation is determined to be the greater of:
*This is the comparative factor used in the assessment roll
Year of Registration | Comparative Factor | |||
---|---|---|---|---|
2012 | 1.08 | |||
2011 | 1.00 | |||
2010 | 1.19 | |||
2009 | 1.11 | |||
2008 | 1.06 |
Calculating the land transfer tax in Montreal, once the value of the property has been determined, is then governed by the following scale:
Value of property | Marginal Tax Rate | |||
---|---|---|---|---|
The first $50,000 ($0 to $50,000) | 0.5% | |||
On the next $200,000 ($50,001 to $250,000) | 1.0% | |||
On the next $250,000 ($250,001 to $500,000) | 1.5% | |||
On the next $500,000 ($500,001 to $999,999) | 2.0% | |||
On the amount over $1,000,000 | 2.5% |
In New Brunswick, the land transfer tax is currently 1.0% of the assessed value of the property. For example, on a purchase of a house assessed to be worth $100,000, the tax payable is $1,000.
In Prince Edward Island (PEI), land transfer tax (otherswise referred to as Real Property Transfer Tax) is calculated as follows:
First-time homebuyers who are purchasing in PEI are exempt from paying land transfer tax under the following circumstances:
Also, if there is more than one purchaser, both purchasers must qualify as a first-time homebuyer.
Each municipality in Nova Scotia sets their own land transfer tax (also known as Deed Transfer Tax), which can vary from 0.5% to 1.5% of the purchase price. For homes in the Halifax area, the land transfer tax is 1.5%.
For land transfer tax rates outside of the Halifax area, please see the Nova Scotia land transfer tax tables
In the North West Territories, land transfer tax is calculated as a percentage of the property value and mortgage amount as follows:
In Newfoundland and Labrador, the Registration of Deeds Act, also known as the land transfer tax, is levied on the property value or the mortgage amount as follows:
Property value | Marginal Tax Rate | |||
---|---|---|---|---|
First $1,000 | $6.00 | |||
On $1,000 - $3,000 | $7.50 | |||
On $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.