Purchasers in most large Canadian cities 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 part of the deal. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from half of a percent to two percent of the total purchase price.
Many provinces have multi-tiered taxation systems that can be complicated.
For example, if you purchase a property for $300,000 in Ontario, 0.5% is charged on the first $55,000, 1% is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5%. Your total tax bill? $2,975.00.
The following chart illustrates Land Transfer Taxes by province.
ONTARIO | QUEBEC |
Land Transfer Tax Up to $55,000 X 0.5% of total purchase price From $55,000 to $250,000 X 1% of total purchase price From $250,000 to $400,000 X 1.5% of total purchase price From $400,000 up X 2% of total purchase price | Transfer Tax Up to $50,000 X 0.5% of total purchase price From $50,000 to $250,000 X 1% of total purchase price From $250,000 up X 1.5% of total purchase price |
MANITOBA | BRITISH COLUMBIA |
Land Transfer Tax Up to $30,000 N/A From $30,000 to $90,000 X 0.5% of total purchase price From $90,000 to $150,000 X 1% of total purchase price From $150,000 up X 1.5% of total purchase price | Property Purchase Tax Up to $200,000 X 1% of total purchase price From $200,000 up X 2% of total purchase price |
Halifax Metro | Outside Halifax County |
1.5% on total purchase price | Check with local municipality. |
For information about rebate programs for the Land Transfer Tax, check out our guide: Government Programs for Home Buyers.