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 % of property value, using asking price as a close estimate. Home buyers in Toronto, unfortunately, also incur an additional municipal tax. However, Ontario, British Columbia, Prince Edward Island and the city of Toronto offer land transfer tax rebates for first-time home buyers to offset the unwelcome cost.
Purchase price of home | Marginal tax rate |
---|---|
First $55,000 | 0.5% |
On $55,000 to $250,000 | 1.0% |
On $250,000 to $400,000 | 1.5% |
Over $400,000 | 2.0% |
Source: Ontario Ministry of Revenue, "Land Transfer Tax."
The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $2,000.
Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227,500. For houses over $227,500, home buyers will receive the maximum $2,000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home.1
Souce: Ontario Ministry of Revenue, "Land Transfer Tax Refund for First-time Homebuyers"
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% |
On $55,000 to $400,000 | 1.0% |
Over $400,000 | 2.0% |
Source: City of Toronto, "Municipal Land Transfer Tax"
First-time home buyers in Toronto of new and resale homes are eligible to receive a refund up to a maximum of $3,725.
Based on Toronto land transfer tax rates, first-time home buyers with homes of $400,000 or less will avoid the tax altogether.
Source: City of Toronto, "Municipal Land Transfer Tax"
Purchase price of home | Marginal Tax rate |
First $200,000 | 1.0% |
Over $200,000 | 2.0% |
Source: Government of British Columbia, "Property Transfer Tax"
First time homebuyers are eligible to receive a full land transfer tax refund on homes purchased for $425,000 or less. On homes purchased between $426,000 - $450,000, the first-time home buyer will be eligible for a partial refund equal to [ ($450K - fair market value) / 25K ] * LTT amount.
You can qualify for the first time home buyer land transfer tax rebate if:
Your property qualifies for the first-time home buyer land transfer tax rebate if:
For more information, see the Government of British Columbia website.
Source: Government of British Columbia, "First Time Home Buyers Program"
Though Alberta does not have a land transfer tax, it does charge title transfer fees. There are two fees: one levied on the property value, and the second on the mortgage amount as follows:
Source: Service Alberta, "Land Titles Act - Tarrif of fees regulation"
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.
Purchase price of home | Title transfer fee |
$1 - $500 |
$0 |
$501 - $8,400 |
$25 |
Over $8,401 | 0.30% of property value |
Source: Information Services Corporation (ISC), "Land Titles Fees"
Property value |
Marginal Tax rate |
First $30,000 | No tax |
On $30,001 - $90,000 | 0.5% |
On $90,001 - $150,000 | 1.0% |
On $150,001 - $200,000 |
1.5% |
On Over $200,001 | 2.0% |
Source: Government of Manitoba, "Land Transfer Tax"
Purchase price of home | Marginal Tax rate |
First $50,000 | 0.5% |
On $50,000 to $250,000 | 1.0% |
Over $250,000 | 1.5% |
Source: "Land Transfer Tax", Century 21 Elite Estates Limited, 1 January 2006, Web 23 November 2010
In New Brunswick, the land transfer tax is currently 0.25% 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 $250.
Source: Public Legal Education end Information Service of New Brunswick
In Prince Edward Island (PEI), land transfer tax is calculated as follows:
Source: Government of PEI, "Real Property Transfer Tax"
First-time home buyers 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 home buyer.
Source: Governement of PEI, "First Time Home Buyer Requirements"
For homes in the Halifax area, the land transfer tax is 1.5% of the purchase price of the home.
For land transfer tax rates outside of the Halifax area, please see the Nova Scotia land transfer tax tables.
Source: Government of Nova Scota, "Deed Transfer Tax".
In the North West Territories, land transfer tax is calculated as a percentage of the property value and mortgage amount as follows:
Source: Government of North West Territories, "Land Titles Fees"
In Newfoundland and Labrador, the land tranfer tax is levied on the property value and mortgage amount as follows:
Source: Government of Newfoundland and Labrador
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.
Source: Land Titles Office, Department of Justice, Yukon Territory
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