Whenever a property is acquired in Canada, a property tax of some sort is charged by the province where the property was sold.  In most provinces the tax is called a land transfer tax (LTT).  Alberta, Saskatchewan, Newfoundland and Labrador, and the Territories charge a smaller transfer fee for the acquisition of property.

If you’re a first-time buyer, you may not have to pay a land transfer tax or you may be eligible for a reduced land transfer tax, depending on where you’re buying your home. Saving for the down payment of your first home is hard and every little bit helps.

For most provinces the land transfer tax is calculated as a percentage of property value.  The asking price for the property would be a close estimate.

land-transfer-tax-rebate

Alberta

Alberta charges a property registration fee and a mortgage registration fee.

Property Registration Fee $50 base + $1 for every $5000 of the property value
Mortgage Registration Fee $50 base + $1 for every $5000 of the mortgage amount

Using an average house value of $474,000, the property registration fee is $145 and the mortgage registration fee is $145 for a total fee of $290.

Saskatchewan

Purchase Price Title Transfer Fee
$0 to $500 $0
$501 to $8,400 $25
$8,401 and greater 0.30% of the value of the property value

The title transfer fee in Saskatchewan for a house valued at $474,000 would cost $1,422.

Newfoundland and Labrador

In Newfoundland and Labrador, the province charges a registration fee for an acquired property and a fee for registering a mortgage.

Value < $500 Value > $500
Registration Fee $100 $100 + $0.40 for each additional $100
Mortgage Fee $100 $100 + $0.40 for each additional $100

For a house valued at $474,000 the registration fee would be $1,996 and the mortgage fee would be $1,996.  The total fees would cost $3,992.

Northwest Territories

In the Northwest Territories, the province charges a registration fee for an acquired property and a fee for registering a mortgage.

Registration Fee Value < $1 million $1.50 for every $1,000 – minimum $100.
  Value > $1 million $1,500 plus $1 for every $1,000 over $1 million
Mortgage Fee $1 for every $1,000 (or part of $1,000) – minimum $80

In the Northwest Territories, a house purchased for $474,000 would have a registration fee cost of $711 and a mortgage registration fee cost of $474. The total cost of the fees would be $1,185.

British Columbia

In British Columbia, the province charges a property transfer tax when you purchase a new property.  The tax is calculated based on the property value.

Portions of Property Value Total Tax
<=$200,000 1%
>$200,000 – $2 million 2%
>$3 million 3%

For a house valued at $474,000 you would pay 1% on the first $200,000.  You would pay 2% on the remaining $274,000.  The total tax would be $7,480.

First-Time Home Owner Rebate

In British Columbia, you can qualify for a full exemption of the property transfer tax if you qualify.

The property you want to purchase must have a property value less than $475,000.

Property Value < $475,000

There are several other qualifications:

  • You much be a Canadian citizen or permanent resident.
  • You have lived in British Columbia for 12 consecutive months before you register the property or filed at least two income tax returns in British Columbia in the last 6 years.
  • You have never owned an interest in a principal residence.
  • You have never received a first-time home buyers’ exemption or refund.

The property must meet the following qualifications:

  • The property must be in British Columbia.
  • The property is your principal residence.
  • be 0.5 hectares (1.24 acres) or smaller

Manitoba

Manitoba has a land title transfer fee based on the fair market value of the property you acquire.  It is calculated as follows:

Property Value Tax Rate
$70 fee
≤ $30,000 0%
$30,001 to $90,000 0.50%
$90,001 to $150,000 1.00%
$150,001 to $200,000 1.50%
>$200,001 2.00%

For a house value of $474,000 the land title transfer fee would be $7,200.

Nova Scotia

In Nova Scotia, the Municipal Deed Transfer Tax is set by the municipality where the property is located. The tax rate ranges from 0% to 1.5%.

For a house value of $474,000 the Municipal Deed Transfer Tax would range from $0 to $7,100 depending on the property is located in the province.

New Brunswick

In New Brunswick, the land transfer tax payable is 1% of the assessed value of the property, or consideration for the transfer, whichever is greater. The tax is payable at the time a deed is tendered for registration.

For a house value of $474,000 the land transfer tax rate would be $4,740.

Ontario

In Ontario, the land transfer tax is based on portions of a home’s value.

Purchase price of home Land title transfer fee
First $55,000 0.50%
On $55,001 to $250,000 1.00%
On $250,001 to $400,000 1.50%
Over $400,001 2.00%

For a house value of $474,000 the land transfer tax rate would be $5,954.95

The City of Toronto has a separate tax fee as well.

First-Time Home Buyer Rebate

Ontario offers a first-time home buyer rebate.  The land transfer tax can be refunded up to $2,000.

Cost of Home Tax Payable Tax Refund Net Tax Payable
$100,000 $725 $725 $0
$200,000 $1,725 $1,725 $0
$300,000 $2,975 $2,000 $975

Prince Edward Island

In Prince Edward Island, a property transfer tax is determined at the rate of 1% of the greater of the sale price or the assessed value of the property.

For a house value of $474,000 the land transfer tax rate would be $4,740.

Qualified first time home buyers are exempt from payment of the property transfer tax.

Quebec

The province of Quebec charges a land transfer tax based on the following schedule (the tax is collected by the municipality):

Purchase price of home Land Transfer Tax
First $50,000 0.50%
On $55,001 to $250,000 1.00%
>$250,001 1.50%

For a house value of $474,000 the land transfer tax rate would be $5,610.