Land Transfer Taxes

Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs.

Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00. The following chart illustrates Land Transfer Taxes by province.

BRITISH COLUMBIA
    Property Purchase Tax
        Up to $200,000 X 1 % of total property value
        From $200,000 up X 2 % of total property value

MANITOBA
    Land Transfer Tax
        Up to $30,000 N/A
        From $30,000 to $90,000 X .5 % of total property value
        From $90,000 to $150,000 X 1 % of total property value
        From $150,000 up X 1.5 % of total property value


ONTARIO
    Land Transfer Tax
        Up to $55,000 X .5 % of total property value
        From $55,000 to $250,000 X 1 % of total property value
        From $250,000 to $400,000 X 1.5 % of total property value
        From $400,000 up X 2 % of total property value

QUEBEC
    Transfer Tax
        Up to $50,000 X .5 % of total property value
        From $50,000 to $250,000 X 1 % of total property value
        From $250,000 up X 1.5 % of total property value

NOVA SCOTIA
    Land Transfer Tax
    Ottawa Metro
        1.5 per cent on total property value
        Outside Ottawa County
        Check with local municipality.

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