Land Transfer Tax

If you are buying a home in Canada, it will be helpful to understand the Land Transfer tax.

What is Land Transfer Tax?

Land Transfer Tax was created in 1970 and is applicable in most provinces in Canada. It can also be called Property Purchase Tax. The buyer of a property pays this tax to the province or municipality. Sellers do not pay this tax. If you are buying a home for the first time, you may be able to get a full or partial rebate of the tax.

Details of the Land Transfer Tax

If you live anywhere other than rural Nova Scotia, Alberta or Saskatchewan, the tax is often added to the closing costs. The tax is the responsibility of the buyer to pay, and can be anywhere from half a percent to two percent of the purchase price.

There are taxation systems in different provinces that can be complicated to figure out. For example: You buy property in Ontario for $300,0000, and on the first $55,000 charged 0.5%. For $55000 to $250000, you get charged 1% and 1.5% for $250000 to $400000. The total bill would be $2975.

Here is a list to show the Land Transfer Taxes for different provinces:

Ontario

Land Transfer Tax

For up to and including $55,000: 0.5% of purchase price

$55,001 to and including $250,000: 1% of purchase price

$250,001 to and including $400,000: 1.5% of purchase price

$400,001 and up: 2% of purchase price.

British Columbia

Property Purchase Tax

For prices up to and including $200,000:1% of total purchase price

For $200,001 and higher:2% of total purchase price

Manitoba

Land Transfer Tax

For prices from $30,000 upto and including $90,000: 0.5% of total purchase price

For prices from $90,001 upto and including $150,000: 1% of total purchase price

Prices from $150,001 and up: 1.5% of total purchase price

Quebec

Transfer Tax

For prices upto and including $50,000: 0.5% of total purchase price

For prices of $50,001 upto and including $250,000: 1% of total purchase price

From $250,001 and up 1.5% of total purchase price

Halifax Metro: The tax would be 1.5% of the total purchase price,

Outside Halifax County: You will have to check with local municipalities for the tax.