Best Property Transfer Tax Calculator - Comparewise

Property Transfer Tax Calculator

How do you calculate property transfer tax in BC and Ontario? If you live in Ontario, you can calculate the amount of taxes you can expect to pay using an Ontario property transfer tax calculator, or a BC property transfer tax calculator. Transfer tax is the same across Canada, in all provinces.

Transfer tax is paid for the land and property once a transaction is closed to the government. It’s often overlooked and not factored into the fees associated with purchasing a property, though it’s essential to understand how it’s calculated for your province.

Whether you live in Ontario or BC Land transfer tax is payable on all land, whether registered or unregistered, and the only exemptions apply to land listed or specified in the Act or its regulations.

Calculate Property Tax Bc - Comparewise

The Definition of Land

The Act defines property and land as anything that includes structures, buildings, lands, fixtures, and construction in progress that will result in any of these.

Land or property transfer tax takes into consideration several costs, including the purchase price, the costs of upgrades and improvements, benefits transferred with the property, liabilities included, and other adjustments that consider the house’s fair market value.

The Origin of Transfer Tax

Historically, transfer tax was called property purchase tax, or PPT, which was first implemented in 1987. It began as a way to reduce speculation, and the fee was 1% of the initial $200,000, and a fee of 2% was applied to the remaining balance.

At the time, home prices were generally lower, and most home buyers did not qualify for the tax, as many houses and properties were below $200,000.

BC Transfer Tax

Over time, the government modified transfer tax and other options for home buyers, including the First Time Home Buyer’s Program, which came into effect in 1994.

Additional changes were made in 2016 for foreign buyers, including the Newly Built Home Exemption program, which increased the PPT by 15% in 2017 and later increased it to 20% in 2018. In B.C., properties valued at over $3,000,000 had an additional 2% tax added in 2021.

Ontario Transfer Tax

Tax transfer fees in Ontario vary based on when the purchase is made, the date of the agreement, and the sale. As of January 1, 2017, a purchase amount of up to $55,000 has a fee of 0.5%; with any above this price, up to $250,000, a tax amount of 1% is applied.

A fee of 1.5% is applied on purchases over $250,000 and up to $400,000. Properties with a value over $400,000 have a tax of 2%. If a property has one or two single-family dwellings, and it is a residence, and the value of $2,000,000 or more, the tax fee is 2.5%.

A family residence is a permanent home or structure where a family resides and claims to be where they live. It includes cabins, cottages, or homes within the city, whether they inhabit the structure seasonally or year-round.

These buildings are also considered family residences (or single-family residences) if the owner one or more other homes where they live. The home must be designed as a residential structure for a family.

While zoning doesn’t determine whether the home is a residential dwelling, it must not be located on agricultural land, which is classified as farm property.

Property Transfer Tax - Comparewise

The Property Transfer Tax Calculator

There are several ways of calculating transfer tax, depending on the type of property purchase and which programs are applicable.

The standard calculator is used for buyers that do not qualify for the First Time Home Buyer program, which means they are likely purchasing a property that’s not new or their first home.

Standard PPT Calculation

The standard calculation, without applying the First Time Home Buyers Plan, applies a fee of $2,000 on a purchase up to $200,000, plus an additional $1,000 for an amount between $200,000 to $2,000,000.

A property over $2,000,000 will have no further fees in addition to the total of $3,000, which applies to residential and commercial properties.

Recent Changes to the Non-Resident Speculation Tax (NRST)

The NRST was recently increased to 25% in October 2022, which is applied to the acquisition or purchase of residential property in Ontario, and bought by foreign individuals or parties.

This tax doesn’t apply to permanent residents or Canadian citizens, and the NRST applies to the Land Transfer Tax in Ontario.

Qualifications for the First-Time Home Buyers Plan

Some Canadians qualify for the First Time Home Buyer’s Plan, which can impact the property transfer tax and other fees you’ll pay when you buy a home. There are specific criteria Canadians will need to meet to qualify for this program, which can result in significant savings and deferred tax payments.

Home buyers must be Canadian citizens or permanent residents of Canada. If you live in BC, you must live in the province for a minimum of twelve consecutive months before the date you become a registered owner.

Alternatively, the buyer must have filed at least two income tax returns in the province of BC and must have been a resident within the past six years before becoming a property owner.

The eligibility criteria for first-time home buyers in Ontario and BC are similar, as the program is available to qualifying Canadians throughout the country.

One of the advantages for Canadians who apply for this program is the $5,000 non-refundable income tax credit for a qualifying house or property. Eligible individuals can receive a federal tax relief credit of up to $750.

General Criteria for the HBP (Home Buyer’s Plan)

One of the most beneficial aspects of the HBP, or Home Buyer’s Plan, is the ability to use your retirement savings to fund the purchase of your first home. The funds must be withdrawn from a registered retirement plan, such as an RRSP, to qualify for the program. You can purchase the home for yourself or a relative with a disability.

You can withdraw funds within 15 years, and the RRSP must be in the owner’s name from each registered retirement savings account to qualify for the program. If your RRSP is locked-in, you won’t be permitted to withdraw funds from them for a specified time. The tax will not be withheld if you withdraw an amount under $35,000.

First-Time Home Buyer’s Plan Qualifications

Various conditions must be met to participate in the HBP, or Home Buyer’s Plan. You must be a first-time home buyer, meaning you cannot have purchased a property before this house or home.

If you decide to apply for HBP on behalf of a relative, they must be a relative with a disability to qualify, and the home must be used primarily for them. If you buy the home for yourself, it must become your primary residence.

To withdraw funds from your RRSP account for the tax benefit, you must be a Canadian resident or citizen and qualify for the HBP when you buy a home or the home is being built.

The home must become your principal residence, even if there is another place where you reside, though the other place must not be a previous purchase; otherwise, you won’t qualify for the first-time HBP. If you’re buying a house or property for a relative with a disability, they must be the primary resident or occupier of the home.

While the HBP option is reserved for people looking to buy their first home only if you previously qualified for this program, and the balance of your previous repayable HBP is zero on the January 1st of the year you plan to withdraw, you may qualify again for this program to buy a second home or residence. To qualify, all other criteria must be met to withdraw a maximum amount of $35,000.

Property Transfer Tax Calculator - Comparewise

Tax vs. Non-Taxable Items in Canada

Many items are subject to taxation in Canada, while many are not or are only taxed in certain circumstances. For example, RRSPs are tax-sheltered, making them a popular choice for people looking to save for retirement while enjoying tax savings.

While this registered fund is taxable when you withdraw funds, you can reduce or delay the amount of tax charged on the amount you take out for specific reasons, including the Home Buyer’s Plan option.

Some items are not subject to taxation, which impact how people budget. These include prescription drugs, certain basic groceries, and transportation services for freight.

When you purchase a new home, you’ll always have to pay a land transfer tax, a requirement for anyone buying a property. The primary consideration is the amount of taxes you’ll pay, which varies based on the individuals buying the home, the type of property, the cost or valuation of the property, and other details.

The Importance of Calculating Your Property Transfer Tax in BC or Ontario

It’s common for many people to miscalculate the amount they’ll need to buy a new home, especially when they don’t include additional fees associated with buying real estate. Land transfer tax is one of the most commonly overlooked fees, and in some cases, this amount can be significant, especially if a house or property is purchased from a foreign buyer and the price or value is high.

When you don’t include this tax in your final calculation, you may find the overall purchase price challenging to afford, especially if you’re planning a budget for your first home and need to take precautions on other upcoming costs, which may include remodeling or renovations, furniture, appliances, insurance, other real estate fees, and unexpected expenses that arise from buying a new home.

Additional Land Transfer Tax Fees

In addition to the provincial property transfer tax in BC and Ontario, many municipalities have tax fees that apply when you buy a new home.

Provincial Land Transfer Tax, PLTT, is a requirement in addition to MLTT, or Municipal Land Transfer Tax, which applies if you live in a city like Toronto. Municipal tax rates for purchasing property varies based on the area where you reside, which is essential to get familiar with, so you can budget in advance.

Municipal Land Transfer Tax in Toronto applies 0.5% on the first $55,000, 1% on a property over $55,000 to $250,000, and 2% on properties with a value over $400,000. If you’re a first-time home buyer, you may qualify for certain rebates for one or both provincial and municipal property transfer tax fees.

The maximum amount of rebate you can receive for provincial land transfer tax is $2,000, and the municipal maximum is $3,725. It’s essential to read and review up-to-date details on these rebates and other changes that may occur, as this can significantly impact the amount you pay in taxes and may receive as a rebate.

Reviewing and Understanding Current Information on Transfer Tax Calculations

If you can’t find the information you’re looking for regarding land transfer tax and rebates in your area, it’s best to visit a local and municipal government website or meet with a representative to discuss specifics about your property.

If there are unique circumstances or challenges in buying land or a home, a government representative, real estate lawyer, or licensed real estate agent can provide professional advice and options for your situation.

Property Transfer Tax Calculator Summary

Understanding how property transfer tax works are essential in calculating how much you’ll pay when you purchase your new home.

While it’s essential to budget ahead for the cost of buying a new home, whether you’re applying for the first-time Home Buyer’s Plan, incorporating other fees along with the purchase price, and the various taxation fees required based on the province and city or municipality where you live.

You’ll find that calculating a reasonably accurate cost can help you determine if a property is within your budget, so you can better prepare for your mortgage and other costs associated with owning a home.

You might also like…

Home Value (Max. $10,000,000)

Is This Your First Home?

Are You a Canadian Citizen?

Result

Value incl. Tax
Transfer Tax
Speculation Tax

Based on the results, you will be paying in transfer taxes. If selling your home for a profit, you should sell it for more than .

Property Transfer Tax Calculator

How do you calculate property transfer tax in BC and Ontario? If you live in Ontario, you can calculate the amount of taxes you can expect to pay using an Ontario property transfer tax calculator, or a BC property transfer tax calculator. Transfer tax is the same across Canada, in all provinces.

Transfer tax is paid for the land and property once a transaction is closed to the government. It’s often overlooked and not factored into the fees associated with purchasing a property, though it’s essential to understand how it’s calculated for your province.

Whether you live in Ontario or BC Land transfer tax is payable on all land, whether registered or unregistered, and the only exemptions apply to land listed or specified in the Act or its regulations.

Calculate Property Tax Bc - Comparewise

The Definition of Land

The Act defines property and land as anything that includes structures, buildings, lands, fixtures, and construction in progress that will result in any of these.

Land or property transfer tax takes into consideration several costs, including the purchase price, the costs of upgrades and improvements, benefits transferred with the property, liabilities included, and other adjustments that consider the house’s fair market value.

The Origin of Transfer Tax

Historically, transfer tax was called property purchase tax, or PPT, which was first implemented in 1987. It began as a way to reduce speculation, and the fee was 1% of the initial $200,000, and a fee of 2% was applied to the remaining balance.

At the time, home prices were generally lower, and most home buyers did not qualify for the tax, as many houses and properties were below $200,000.

BC Transfer Tax

Over time, the government modified transfer tax and other options for home buyers, including the First Time Home Buyer’s Program, which came into effect in 1994.

Additional changes were made in 2016 for foreign buyers, including the Newly Built Home Exemption program, which increased the PPT by 15% in 2017 and later increased it to 20% in 2018. In B.C., properties valued at over $3,000,000 had an additional 2% tax added in 2021.

Ontario Transfer Tax

Tax transfer fees in Ontario vary based on when the purchase is made, the date of the agreement, and the sale. As of January 1, 2017, a purchase amount of up to $55,000 has a fee of 0.5%; with any above this price, up to $250,000, a tax amount of 1% is applied.

A fee of 1.5% is applied on purchases over $250,000 and up to $400,000. Properties with a value over $400,000 have a tax of 2%. If a property has one or two single-family dwellings, and it is a residence, and the value of $2,000,000 or more, the tax fee is 2.5%.

A family residence is a permanent home or structure where a family resides and claims to be where they live. It includes cabins, cottages, or homes within the city, whether they inhabit the structure seasonally or year-round.

These buildings are also considered family residences (or single-family residences) if the owner one or more other homes where they live. The home must be designed as a residential structure for a family.

While zoning doesn’t determine whether the home is a residential dwelling, it must not be located on agricultural land, which is classified as farm property.

Property Transfer Tax - Comparewise

The Property Transfer Tax Calculator

There are several ways of calculating transfer tax, depending on the type of property purchase and which programs are applicable.

The standard calculator is used for buyers that do not qualify for the First Time Home Buyer program, which means they are likely purchasing a property that’s not new or their first home.

Standard PPT Calculation

The standard calculation, without applying the First Time Home Buyers Plan, applies a fee of $2,000 on a purchase up to $200,000, plus an additional $1,000 for an amount between $200,000 to $2,000,000.

A property over $2,000,000 will have no further fees in addition to the total of $3,000, which applies to residential and commercial properties.

Recent Changes to the Non-Resident Speculation Tax (NRST)

The NRST was recently increased to 25% in October 2022, which is applied to the acquisition or purchase of residential property in Ontario, and bought by foreign individuals or parties.

This tax doesn’t apply to permanent residents or Canadian citizens, and the NRST applies to the Land Transfer Tax in Ontario.

Qualifications for the First-Time Home Buyers Plan

Some Canadians qualify for the First Time Home Buyer’s Plan, which can impact the property transfer tax and other fees you’ll pay when you buy a home. There are specific criteria Canadians will need to meet to qualify for this program, which can result in significant savings and deferred tax payments.

Home buyers must be Canadian citizens or permanent residents of Canada. If you live in BC, you must live in the province for a minimum of twelve consecutive months before the date you become a registered owner.

Alternatively, the buyer must have filed at least two income tax returns in the province of BC and must have been a resident within the past six years before becoming a property owner.

The eligibility criteria for first-time home buyers in Ontario and BC are similar, as the program is available to qualifying Canadians throughout the country.

One of the advantages for Canadians who apply for this program is the $5,000 non-refundable income tax credit for a qualifying house or property. Eligible individuals can receive a federal tax relief credit of up to $750.

General Criteria for the HBP (Home Buyer’s Plan)

One of the most beneficial aspects of the HBP, or Home Buyer’s Plan, is the ability to use your retirement savings to fund the purchase of your first home. The funds must be withdrawn from a registered retirement plan, such as an RRSP, to qualify for the program. You can purchase the home for yourself or a relative with a disability.

You can withdraw funds within 15 years, and the RRSP must be in the owner’s name from each registered retirement savings account to qualify for the program. If your RRSP is locked-in, you won’t be permitted to withdraw funds from them for a specified time. The tax will not be withheld if you withdraw an amount under $35,000.

First-Time Home Buyer’s Plan Qualifications

Various conditions must be met to participate in the HBP, or Home Buyer’s Plan. You must be a first-time home buyer, meaning you cannot have purchased a property before this house or home.

If you decide to apply for HBP on behalf of a relative, they must be a relative with a disability to qualify, and the home must be used primarily for them. If you buy the home for yourself, it must become your primary residence.

To withdraw funds from your RRSP account for the tax benefit, you must be a Canadian resident or citizen and qualify for the HBP when you buy a home or the home is being built.

The home must become your principal residence, even if there is another place where you reside, though the other place must not be a previous purchase; otherwise, you won’t qualify for the first-time HBP. If you’re buying a house or property for a relative with a disability, they must be the primary resident or occupier of the home.

While the HBP option is reserved for people looking to buy their first home only if you previously qualified for this program, and the balance of your previous repayable HBP is zero on the January 1st of the year you plan to withdraw, you may qualify again for this program to buy a second home or residence. To qualify, all other criteria must be met to withdraw a maximum amount of $35,000.

Property Transfer Tax Calculator - Comparewise

Tax vs. Non-Taxable Items in Canada

Many items are subject to taxation in Canada, while many are not or are only taxed in certain circumstances. For example, RRSPs are tax-sheltered, making them a popular choice for people looking to save for retirement while enjoying tax savings.

While this registered fund is taxable when you withdraw funds, you can reduce or delay the amount of tax charged on the amount you take out for specific reasons, including the Home Buyer’s Plan option.

Some items are not subject to taxation, which impact how people budget. These include prescription drugs, certain basic groceries, and transportation services for freight.

When you purchase a new home, you’ll always have to pay a land transfer tax, a requirement for anyone buying a property. The primary consideration is the amount of taxes you’ll pay, which varies based on the individuals buying the home, the type of property, the cost or valuation of the property, and other details.

The Importance of Calculating Your Property Transfer Tax in BC or Ontario

It’s common for many people to miscalculate the amount they’ll need to buy a new home, especially when they don’t include additional fees associated with buying real estate. Land transfer tax is one of the most commonly overlooked fees, and in some cases, this amount can be significant, especially if a house or property is purchased from a foreign buyer and the price or value is high.

When you don’t include this tax in your final calculation, you may find the overall purchase price challenging to afford, especially if you’re planning a budget for your first home and need to take precautions on other upcoming costs, which may include remodeling or renovations, furniture, appliances, insurance, other real estate fees, and unexpected expenses that arise from buying a new home.

Additional Land Transfer Tax Fees

In addition to the provincial property transfer tax in BC and Ontario, many municipalities have tax fees that apply when you buy a new home.

Provincial Land Transfer Tax, PLTT, is a requirement in addition to MLTT, or Municipal Land Transfer Tax, which applies if you live in a city like Toronto. Municipal tax rates for purchasing property varies based on the area where you reside, which is essential to get familiar with, so you can budget in advance.

Municipal Land Transfer Tax in Toronto applies 0.5% on the first $55,000, 1% on a property over $55,000 to $250,000, and 2% on properties with a value over $400,000. If you’re a first-time home buyer, you may qualify for certain rebates for one or both provincial and municipal property transfer tax fees.

The maximum amount of rebate you can receive for provincial land transfer tax is $2,000, and the municipal maximum is $3,725. It’s essential to read and review up-to-date details on these rebates and other changes that may occur, as this can significantly impact the amount you pay in taxes and may receive as a rebate.

Reviewing and Understanding Current Information on Transfer Tax Calculations

If you can’t find the information you’re looking for regarding land transfer tax and rebates in your area, it’s best to visit a local and municipal government website or meet with a representative to discuss specifics about your property.

If there are unique circumstances or challenges in buying land or a home, a government representative, real estate lawyer, or licensed real estate agent can provide professional advice and options for your situation.

Property Transfer Tax Calculator Summary

Understanding how property transfer tax works are essential in calculating how much you’ll pay when you purchase your new home.

While it’s essential to budget ahead for the cost of buying a new home, whether you’re applying for the first-time Home Buyer’s Plan, incorporating other fees along with the purchase price, and the various taxation fees required based on the province and city or municipality where you live.

You’ll find that calculating a reasonably accurate cost can help you determine if a property is within your budget, so you can better prepare for your mortgage and other costs associated with owning a home.

You might also like…

Discover Investment Opportunities

Make your money do more.

12 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

Young investors can trade stocks and ETFs, all for free.
Min Investment
$0
Target Return
Varied
Get 50 Free Trades on Canada's #1 trading platforms.
Min Investment
$0
Target Return
Varied
Get $20 CAD of BTC with promo code: COMPAREWISE
Min Investment
$100
Target Return
4-7%
Earn passive income, start investing in real estate.
Min Investment
$1
Target Return
Varied
Use code KKZH8A when you sign up to get 2 free stocks
Min Investment
$1
Target Return
Varied
Get a $50 bonus when you sign up and deposit $250.
Min Investment
$50
Target Return
Varied
A new passive income asset class, peer-to-peer lending.
Min Investment
$1
Target Return
Varied
Retire up to 30% wealthier with Questwealth Portfolio.
Min Investment
$1
Target Return
Varied
Earn rewards when you buy and sell crypto on BlockFi
Min Investment
$1
Target Return
Up to 8.6%
Buying and seucring gold has never beeng more simple and affordable.
Min Investment
$1
Target Return
Varied
Get a $25 bonus when you sign up and trade.
Min Investment
$10
Target Return
Varied
Online real estate investment in one platform
Min Investment
$25,000
Target Return
9-24%

comparewise

October 30, 2022
Fact checked
Categories:

Browse calculators by type

Check out business loan calculators on Comparewise...

Check out car loan calculators on Comparewise to s...

Check out date and time calculators on Comparewise...

Check out health calculators on Comparewise to see...

It's never been easier to calculate your monthly p...

Check out our investment calculators to see how mu...

Check out mathematics calculators on Comparewise t...

Check out mortgage calculators to see what you can...

Our personal finance calculators help you compare ...

Check out our personal loan calculators to see wha...

Check out student calculators to check your GPA an...

Check out tax calculators to see different income ...

You may also like:

Algebra is an area of mathematics that involves the application of calculations and for...
To increase your chances of conceiving a child, becoming familiar with your unique mens...
Do you have excessive auto insurance costs? The majority of Canadian drivers ponde...
In Canada, there are quite a number of things to take into consideration when deciding ...
One of the most important aspects of a course is understanding and setting the grading ...
Car loan?
Personal Loan?

Top deals await you just a short
application away!