Calculate the land transfer tax that will need to be paid when purchasing a home across all provinces. This calculator takes into consideration the first-time homebuyer rebate, foreign buyer, as well as municipal land transfer tax for homes purchased in Toronto. Prospective homebuyers in Canada must consider land transfer taxes as a key component affecting overall home affordability.
How is Land Transfer Tax Calculated in Canada?
The amount of land transfer tax varies by province in Canada as well as the method in which it is calculated. Most of the provinces calculate land transfer tax based on the value of the home and use a tiered system.
Alberta and Saskatchewan do not charge land transfer tax however Saskatchewan does charge a land titles transfer fees based on the properties value and Alberta charges a land registration fee.
While Nova Scotia does not administer a provincial land transfer tax, they do allow municipalities to charge a Deed Transfer Tax (DTT). Newfoundland and Labrador is another province that does not have a land transfer tax but rather a registration of deeds fee which is not based on the value of property.
These are the provinces that have land transfer taxes, and what they are commonly referred to in each province:
- British Columbia (Property Transfer Tax - PTT)
- Manitoba (Land Transfer Tax)
- Ontario (Land Transfer Tax - OLTT, plus Municipal LTT for homes purchased in Toronto)
- Quebec (Land transfer duties - often referred to as the welcome tax)
- New Brunswick (Real Property Transfer Tax)
- Prince Edward Island (Real Property Transfer Tax)
Land Transfer Tax Rates in Ontario
The Ontario land transfer tax (LTT) rates are applied based on the purchase price of the home. These are the most recent land transfer tax rates which became effective on January 1, 2017.
| Home Purchase Price | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| Over $55,000 up to $250,000 | 1.0% |
| Over $250,000 up to $400,000 | 1.5% |
| Over $400,000 up to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Let’s go over an example on how to calculate land transfer tax on a $500,000 home in Ontario.
The first $55,000 of this home purchase price is charged at the 0.5% marginal tax rate.
- LTT Calculation: $55,000 x 0.5% = $275
- Property value left: $500,000 - $55,000 = $445,000
The next tier charges tax of 1.0% on the property value Over $55,000 up to $250,000.
- LTT Calculation: $195,000 x 1.0% = $2,225
- Property value left: $445,000 - $195,000 = $250,000
The next tier charges tax of 1.5% on the property value over $250,000 up to $400,000.
- LTT calculation: $150,000 x 1.5% = $4,475
- Property value left: $250,000 - $150,000 = $100,000
The next tier charges tax of 2.0% on the value of property over $400,000 up to $2,000,000. There is only $100,000 left to be taxed on this $500,000.
- LTT calculation: $100,000 x 2.0% = $2,000
We can now add all of our LTT calculations together to find the total land transfer tax for this home priced at $500,000 in Ontario.
- Total LTT: $275 + $2,225 + $4,475 + 2,000 = $8,975
The total land transfer tax in Ontario for a home priced at $500,000 would be $8,975. This does not take into consideration the first-time homebuyers rebate as well as additional land transfer tax if this home was purchased in Toronto.
Alberta land transfer tax
While not specifically a land transfer tax Alberta does requires a land transfer registration fee and mortgage registration fee. This updated fee schedule for Alberta is effective October 20th, 2024. These fees are charged based on the value of the property and principal of the mortgage.
- Land Transfer Registration Fee:
- A $50 base fee; plus
- A variable fee of $5 for every $5000 of property value.
- Mortgage Registration Fee:
- $50 base fee; plus
- A variable fee of $5 for every $5000 of the principal mortgage amount