Land Transfer Tax

Land Transfer Tax

Purchasers in many large Canadian centres 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 mandatory and very common. These taxes, levied on properties that are changing hands, are the sole responsibility of the purchaser itself. 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.

Most provinces have a multi-tiered taxation system that are proven complicated and can be misunderstood. To help break things down, an example would be If you purchase a property for $260,000 in Ontario, for example, 0.5 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.

Transfer Taxes by Province:

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

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

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

Halifax Metro

  •  1.5 per cent on total property value

Outside Halifax County

  • Check with local municipality.

 

 

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