Purchasing a home in Canada is a fascinating process with lots of unforeseen expenses. You will also be responsible for paying additional fees on top of your down payment. These include appraisal fees, transfer fees, provincial or municipal taxes (or both), and legal costs. Check out our land transfer tax calculator to see how much it may cost you.

The jurisdictions are subject to the last item, known as a land transfer tax (LTT), with the exception of Saskatchewan, Alberta, and all three territories, which impose land transfer fees instead. Although the terms are different, the concept is the same: Whenever a piece of property is sold, the buyer will have to pay a one-time fee to the local government.

What is land transfer tax?

When your house purchase is completed, you will be required to pay a land transfer tax, which is normally calculated as a percentage of the home’s sale price.

You can calculate the amount of the tax by using a land transfer tax estimator. LTT can potentially cost several thousand dollars, depending on the value of your home. Although the costs are normally substantially lower in Alberta, Saskatchewan, and the territories, they can still reach hundreds of dollars, depending on the price of the property.

The majority of provinces and territories base their land transfer taxes calculations on the property’s appraised value, whereas a few just consider the purchase price. The land transfer tax calculation makes the assumption that the appraised value and the purchase price will both be the same.

How To Use A Land Transfer Tax Calculator

As it is known that Canada consists of different provinces, land transfer tax is calculated differently in each province and territory, and the calculator will be updated to reflect these differences.

Choose the province or territory where the property will be bought to get started. The calculator will show you the fields that are necessary to finish the computation as you choose a province or region.

The calculator will produce the total land transfer tax amount based on your input. A summary of your land transfer tax, including the province share, municipal portion, and any land transfer tax refunds you might be eligible for, is also available.

How Land Transfer Tax Is Calculated

As it has been mentioned before, every territory and province in Canada levies a fee or a tax on property transfers. Moreover, some municipalities impose a fee known as the municipal land transfer tax (MLTT).

Most of the time, LTT is determined as a percentage of the value of your property, and the majority of tax rates are marginal. This means that the amount of the tax rises as the value of your home does.

Mortgage registration charges are frequently added to land transfer fees, depending on the size of the mortgage taken out to purchase the property. These are normally calculated depending on the home’s purchase price.

You can use the calculator to determine the land transfer tax applicable to your region, or you can read on to see how it is determined where you live.

Depending on the area, anyone purchasing a property in Canada may either pay LTTs or a land transfer fee, therefore it’s important to budget for this cost. However, in some areas, first-time home purchasers may be eligible for rebates. The applicable refunds will be immediately displayed by the land transfer tax calculator.

Alberta Land Transfer Tax

One of the few provinces in Canada that does not impose a land transfer tax is Alberta. Instead, it levies fees for both the registration of mortgages and land transfers.

• The mortgage’s issuance is covered by the registration fee. For every $5,000 of the principal mortgage amount, the buyer must pay $50 + $1.50.
• The administrative costs associated with transferring the land’s legal title are covered by the transfer of land registration fee. For every $5,000 of the property’s worth that the buyer purchases, they are charged $50 + $2.

Ontario Land Transfer Tax

Ontario imposes a land transfer tax by using a tax-bracket system on the cost of buying your property. This means homeowners in Ontario pay Land transfer tax by a percentage of their home value. So the tax rates imposed in Ontario are:

• On the first $55,000 the rate is 0.5%
• 1.0% for the amount between $55,001 and $250,000
• 1% on the amount between $250,001 and $400,000
• 2.0% on the amount between $400,001 and $2,000,000,000
• 2.5% of any sum exceeding $2,000,000

Any non-Canadian citizen or permanent resident who purchases property in the Greater Golden Horseshoe Region will also be subject to a 15% non-resident speculation tax.

Eligibility

• A Canadian citizen or permanent resident is required to make the purchase.
• The buyer must be at least 18 years old.
• Within nine months after the sale, the buyer must move into the house.
• Any previous ownership of a home by the buyer, anywhere in the globe, is disqualified.
• The buyer’s spouse is not permitted to have owned property while also being your spouse.

The refund will cover the entire charged amount on homes up to $368,000 based on the rates of the Ontario land transfer tax.

The maximum $4,000 refund will be given to buyers of homes over $368,000, and they will still be responsible for the remaining LTT balance. You must request this reimbursement within 18 months after the home’s purchase in order to be eligible.

British Columbia Land Transfer Tax

The amount of the land transfer tax (LTT) is determined by the property’s worth when purchasing property in British Columbia. In British Columbia, purchasers pay a marginal tax rate based on a portion of the value of the property. These are the tax rates:

• On the first $200,000  it is valued at the rate of 1%
• 2% on the amount between $200,000 and $2,000,000
• 3% for the amount between $2,000,001 and $3,000,000
• 5% of any amount in excess of $3,000,000

There are a number of requirements that must be met in order for you to be free from this tax Foreign buyers in British Columbia are subject to an extra 20% tax. For properties worth less than $525,000, British Columbia offers first-time buyers a land transfer tax credit of around $8,000.

If your asking price is $500,000 or less, the entire tax amount is covered by the rebate. There is a partial refund in all other cases.

Eligibility

If you meet the following criteria, you may be eligible for a land transfer tax rebate for first-time homebuyers in BC:

• You must be a Canadian citizen or a permanent resident as established by Immigration Canada.
• Within the six years preceding the registration of the property, you were required to have submitted two income tax returns in the province.
• You have never owned a stake in a primary residence
• You’ve never gotten a first-time homebuyer’s exemption or refund.

Your property is eligible for the first-time homebuyer land transfer tax refund if:

• The property is worth less than $500,000 in the fair market.
• The land is no larger than (0.5) hectares.

Manitoba Land Transfer Tax

In Manitoba, the land transfer tax (LTT) is determined by the value of the home being purchased. Additionally, buyers pay a $70 fixed registration charge for each transaction. In Manitoba, the marginal tax rates are:

• The first $30,000 is tax-free.
• 0.5% for the amount between $30,001 and $90,000
• 1.0% for the amount between $90,001 and $150,000
• 1.5% for the sum between $150,001 and $200,000
• 2.0% on any sum above $200,000

Québec Land Transfer Tax

The land transfer tax in Quebec operates differently from that in most other provinces because it is computed and collected by the municipalities. Every property in Quebec is subject to tax based on its “base amount,” which is equal to the greater of:

• The purchase price for the home
• The amount stated on the sale deed
• Assessed value by the municipality

The buyer pays LTT in accordance with the following scale after determining the base amount:

• 0.5% for the first $50,000
• 1.0% for the amount between $50,001 and $250,000.
• 1.5% for amounts over $250,000.

Nova Scotia Land Transfer Tax

Outside of Halifax, there is no provincial land transfer tax for inhabitants of Nova Scotia. A land transfer tax, typically approximately 1%, may be levied by certain cities.

A 5% deed transfer tax is additionally due to Canadians who don’t live in Nova Scotia when they buy a home. All residential properties with three or fewer units are subject to the tax, which takes effect on April 1, 2022.

If you move to Nova Scotia within six months of buying the house, you will be exempted from the tax.

Newfoundland & Labrador Land Transfer Tax

LTT is subject to the Registration of Deeds Act in Newfoundland and Labrador. Using the following formulae, buyers are required to pay a transfer tax under this rule:

• If the home’s valuation or mortgage is less than $500, $100 will be given.
• For each $100 in mortgage or property value exceeding $500, there is a fee of $0.40.

New Brunswick Land Transfer Tax

The marginal tax rate is not a concern for property buyers in New Brunswick. As an alternative, they pay a flat tax of 1% of the property’s worth.

Prince Edward Island Land Transfer Tax

The PEI transfer tax exemption excludes first-time homebuyers from paying the property transfer tax. Either you must have lived in PEI for 183 days straight before buying your house, or you must have lived in your recently bought house for at least 183 days straight.

Non-first-time homebuyers are additionally exempt from the real property transfer tax in PEI if the property being transferred costs less than $30,000.

In the following situations, first-time homeowners in Prince Edward Island are excused from paying land transfer tax:

• Purchase and property values are less than $200,000
• People use their homes as their primary dwelling.

Additionally, if there are many buyers, each buyer must meet the requirements for first-time homeowner eligibility.

Northwest Territories Land Transfer Tax

The buyer in the Northwest Territories is responsible for paying both the mortgage fee and the land transfer fee. The costs are determined by the value of the property:

• With a minimum charge of $100, the rate is $1.50 for every $1,000 in value up to $1,000,000.
• $1,500 for homes up to $1,000,000, with $1 for each additional $1,000 in value

A similar formula is used to determine the mortgage fee:

• $1 is deducted from each $1,000 value, with an $80.00 minimum.

Nunavut Land Transfer Tax

The LLT is not levied in Nunavut. The land registration fee and the mortgage registration charge are the two separate fees that buyers must pay.

There is a land registration cost of $1.50 for every $1,000 of home value for properties worth $1,000,000 or less, with a minimum price of $60. A fee of $1,500 plus $1 for every additional $1,000 in value is charged for properties valued at more than $1 million.

A cost of $1 for every $1,000 of the mortgage amount, with a minimum fee of $40, is also required from buyers in order to register the mortgage.

Yukon Land Transfer Tax

The total land transfer fee in Yukon is comprised of three separate levies charged by the territory government.

An assurance fee is required if the home’s purchase price has gone up since the last transfer. Only if your purchase price exceeds the property’s value at the time of its most recent transfer is this fee relevant, in which case the following fees would also apply:

• $20 for the first $10,000 of additional declared value.

• $10 for every $10,000 or more in additional declared value

An additional $20,000 of reported value will be present, for instance, if you recently paid $100,000 for a property, but its worth at the time of the prior transfer was $80,000. Your assurance charge will be $30 which is calculated as $20 on the first $10,000 and $10 on the remaining $10,000), as result.

In addition, a flat land transfer fee is considered based on the value of the property:

• $50 for properties valued under $100,000.
• $150 for homes priced between $100,000 and $500,000
• $350 for homes priced between $500,001 and $3,000,000
• $550 for homes priced between $3,000,001 and $10,000,000
• For properties worth more than $10,000,000, the price is $750.

Additionally, a flat mortgage registration fee that is determined by the amount of the mortgage used to buy the residence is charged:

• $50 for mortgages under $100,000
• $100 for loans ranging from $100,000 to $499,999
• $200 for loans ranging from $500,000 to $999,999cv
• $400 for mortgages ranging from $1 million to $4,999,999.

Cities In Canada With Additional Land Transfer Taxes

Toronto Land Transfer Tax

You as the buyer are responsible for paying the municipal tax which is regarded as the Toronto land transfer tax whenever you purchase a home. Land transfer tax, which is calculated using various marginal transfer tax levels and is based on your property purchase price, can be a major expense for house buyers.

The Toronto land transfer tax, as well as the provincial Ontario land transfer tax, must both be paid. You can get a discount on your land transfer tax cost as a first-time home buyer for your Toronto transfer tax.  

One of the few Canadian cities which is Toronto does not charge homeowners a municipal Land Transfer Tax. Only properties purchased within Toronto are subject to Toronto’s MLTT.  These are the tax rates:

• on the first $55,000, the tax rate is 0.5%
• 1.0% for the amount between $55,001 and $250,000
• 1% on the amount between $250,001 and $400,000
• 2.0% on the amount between $400,001 and $2,000,000,000
• 2.5% of any amount exceeding $2,000,000

Along with the taxes paid to the province of Ontario, MLTT is also charged. First-time homebuyers in Toronto who purchase both new and used homes are qualified for a rebate of up to $4,475.

Eligibility

• A Canadian citizen or permanent resident is required to make the purchase.
• The buyer must be a minimum age of 18 years.
• The buyer must reside in the home purchased within nine months of the sale.
• Nowhere in the world can the buyer claim to have owned a home.
• The buyer’s spouse cannot have been your spouse and an owner of a home.

Montreal Land Transfer Tax

Like the rest of Quebec, the MLTT in Montreal is determined by the property’s “base amount,” which is equal to the greater of:

• The cost of buying the property
• The amount stated on the sale agreement

The market value as established by an evaluation and elevated by the following factors:

• 1.06 for the sale of properties in 2021
• 1.00 for the sale of property in 2020
• 1.04 for property sales in 2019

The way properties are taxed in Montreal is different from other municipalities. Property values are taxed at higher rates since they are normally more expensive in Montreal than elsewhere in Quebec.

After the base amount has been determined, MLTT is assessed in line with this schedule.

• On the first $52,800, the rate is 0.5%
• 1.0% for the amount between  $52,801 to $264,000
• 1.5% for the amount between $264,001 to $527,900
• 2.0% for the amount between $527,901 to $1,055,800
• 2.5% for the amount between  $1,055,800 to $2,041,900
• Any sum over $2,041,900 will be subject to a 3% fee.

Thanks for checking out our land transfer tax calculator.

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