Land Transfer Tax Calculator In Canada: Free Guide 2024?
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If you’re a Canadian looking to buy property, you will come across the term “land transfer tax”. Most real estate transactions in Canada will incur this tax, which can add up to thousands of dollars on top of your registration fee depending on where you live.
Many Canadians are now using online land transfer tax calculators to help figure out how much land transfer tax they need to pay in addition to the registration fee. This article will look at land transfer taxes, how they work, and the best calculators available in Canada for 2024.
What Is Land Transfer Tax?
Land transfer taxes are imposed on real estate transactions in most Canadian provinces and territories. The land transfer tax is usually paid to the provincial or territorial government when you buy a property.
The amount of tax that needs to be paid depends on where you live and how much your property is worth. In some cases, there may also be additional municipal or regional land transfer taxes that need to be paid, depending on the location of your property.
How Does The Land Transfer Tax Calculator Work?
A land transfer tax calculator is an online tool that helps you calculate the amount of land transfer tax you must pay when buying a property. Generally, these calculators require inputting information such as the purchase price of your property, market value, additional declared value, and the province or territory in which it’s located. The calculator then calculates the land transfer tax due on your purchase based on the declared value.
Many online land transfer tax calculators also let you calculate tax based on specific provincial rules and policies. Several tools will let you enter more specific details, such as whether you are buying a newly constructed property or an existing one and your mortgage amount because tax rates can vary depending on the property type, market value, and additional declared information.
You may qualify for tax rebates and exemptions if you meet specific criteria. We’ll explore this, too.
Land Transfer Tax Rebate for First-Time Homebuyers
Most provinces offer a land transfer tax rebate for first-time homebuyers. If you are buying a property for the first time, you may be eligible to receive a partial refund or complete exemption from paying land transfer tax.
For example, in Ontario, first-time homebuyers can get up to $4,000 back on their purchase when they use an online calculator and submit the required paperwork. The rebate amount depends on how much your property is worth and whether it’s newly constructed or existing.
It’s essential to note that each province has different rules surrounding who qualifies as a first-time homebuyer and the amount of rebate they can receive based on the mortgage amount.
Here are some of the provincial land transfer tax rebates available in Canada for first-time homebuyers and residential properties.
- Ontario: Land transfer tax rebates up to $4,000
- Toronto: Toronto levies a rebate up to $4,475
- British Columbia: Full refund up to $8,000 for a home purchase price of up to $500,000. To qualify for the tax rebate as a first-time home buyer, you must use it as a principal residence. You may also enjoy a partial tax rebate for property prices of up to $525,000.
- Alberta and Saskatchewan: No land transfer tax, so no specific rebates for first-time home buyers.
- Manitoba: No rebate for first-time homebuyers
- Quebec: No rebate for first-time buyers; however, you may be eligible to receive a lump sum payment as a permanent resident if there is one child under 18 in your family who will live in the purchased property
- Prince Edward Island: Rebate for a purchase price of up to $200,000
- Yukon, Nunavut, and Northwest Territories: No direct rebate for first-time homebuyers
Exemptions From Land Transfer Taxes
In some cases, you may be exempt from paying land transfer taxes and only need to pay a land registration fee. Here are some conditions under which you may qualify for an exemption from paying land transfer taxes:
- Buying a newly constructed residential property
- Registering a transfer between family members (applicable for farming properties only, not residential or commercial properties)
- Transferring the property to one of your direct or lineal descendants, for example, if a parent is transferring a property to a child
- With a nominal land registration fee, you can transfer your property to your family business.
- Transferring land or property from one spouse to another
While these are some of the general situations for possible tax rebates, make sure to check with your real estate lawyer, provincial government, and municipal authorities before making any real estate transactions, as the rules can vary depending on where you live, your purchasing price, and in some cases, your family composition.
4 Best Land Transfer Tax Calculator In Canada 2024
We have compiled a list of five of the best land transfer tax calculators in Canada for 2024. Here are our top picks:
- Ratehub.ca: Editor’s Choice as the Best Overall Land Transfer Tax Calculator
- WOWA: Most Detailed Tax Breakdown
- MoneySense: Most Easy to Use Interface
- Clover Mortgage: Most Comprehensive Tax Descriptions
Best Land Transfer Tax Calculator In Canada March 2024
Ratehub.ca
Its broad geographic reach, clear explanation of the land tax system, and accuracy make Ratehub.ca is the best overall land transfer tax calculator in Canada.
- Area-wise land tax search feature with provincial land transfer tax
- Comprehensive guide on how the land tax works in Canada
- Detailed tax calculation rules for all provinces and territories
- Doesn’t show speculation tax
- Doesn’t include flat legal fees
You can simply search any city name on ratehub.ca and find out the provincial and municipal tax you need to pay there. ratehub.ca also presents you with the most promising mortgage rates.
WOWA
WOWA is one of the most detailed Canadian land transfer calculators. You’ll get tax breakdowns and mortgage rates for ten provinces and territories of Canada.
- Includes speculation tax and provincial land transfer tax
- Very easy-to-understand graphical representation of existing land tax rates
- Individual tax calculator for ten provinces and shows land transfer tax rebate
- Doesn’t show flat legal or administrative fees
WOWA also lets you quickly indicate your tax calculation situation so that you can quickly find out if you qualify for a rebate. You can also choose specific regional options, such as special requirements for Toronto properties.
MoneySense
The MoneySense land transfer tax calculator is easy to use; just input your desired city’s name and get the transfer tax breakdown.
- Tax calculation breakdown table for all provinces
- City-wise searching with land transfer tax refund
- Detailed explanation of tax calculation process based on base fee
- Doesn’t show first-time purchases or existing properties separately
MoneySense comprehensively covers all major cities and municipalities of Canada from all provinces and territories. You will also find a detailed tax calculation table that summarizes land tax from various regions.
Clover Mortgage
Clover Mortgage is an excellent land tax calculator if you want to find taxes for a property value transaction from Ontario, British Columbia, or Alberta.
- Breakdown of provincial and municipal taxes
- Shows land transfer tax refunds and rebates separately
- Comprehensive explanation
- Supports only three provinces
- No area-wise search feature
Although Clover Mortgage does not cover all regions of Canada, you can use it to find out the complete breakdown for three major Canadian provinces. The tool shows provincial and municipal tax along with rebates.
Land Transfer Tax In Canada: Rates & Fees
The rates, minimum charges, and fees for land transfer tax in Canada vary by province depending on individual provincial land transfer tax. Generally, most provinces follow a graduated taxation system based on your property’s purchase price, which means the taxation level is different pricing slabs or pricing tiers.
Now, let’s look into land transfer tax in Canada for several provinces, major cities, and territories. We’ll find out how much you will have to pay in taxes if your property’s purchase price is $500,000 in that region.
Alberta
Alberta is an excellent place for homebuyers, as the province does not charge land transfer fees. Assuming a 20% downpayment for a $500,000 property in Calgary, you will pay $74 as a mortgage registration fee and $90 property value registration fee, making the total registration fee as $164. However, the land transfer tax for Alberta is zero.
British Columbia
In British Columbia, the transfer fee is 1% if the property costs up to $200,000, and 2% if it’s between $200,000 and $2,000,000. So, for $500,000 worth of property value in British Columbia, your tax will be $8,000. However, you will get a 100% rebate if you are a first-time homebuyer or buying a newly built property.
Manitoba
Manitoba has several land transfer tax tiers, as follows:
- 0% on the first $30,000 of purchase price
- 0.5% on the next $60,000 of purchase price
- 1% on the next $60,000 of purchase price
- 1.5% on the next $50,000 of purchase price
- 2% on the remaining purchase price
So, your tax for a $500,000 property value in Winnipeg will be $7,720.
New Brunswick
According to the Real Property Taxation policy of New Brunswick, the province has levied a flat marginal tax rate of 1% on property value or purchase price. So, you will have to pay a $5,000 transfer fee to purchase land costing $500,000.
Newfoundland & Labrador
Newfoundland & Labrador has an affordable land transfer tax structure known as Registration of Deeds prescribed fees. The fee consists of two parts – one for mortgage payments and one for the property value. The tax to purchase $500,000 of land in St. John’s is $2,098.
Nova Scotia
Nova Scotia has implemented a non-resident Deed Transfer Tax policy, which levies a 5% non-resident speculation tax on the purchasing price for non-residents buying residential properties. The flat municipal tax rate is 1.5% of the purchase price for Canadian citizens. To purchase a $500,000 property in Halifax, a resident will pay $7,500, whereas a nonresident will pay $32,500.
Prince Edward Island
Prince Edward Island charges a flat 1% real property transfer tax. So, you will have to pay a $5,000 transfer fee for a property value of $500,000 in Charlottetown.
Quebec
The province of Quebec has pretty detailed guidelines on land transfer tax and minimum charge, as specified in the D17 Land Transfer Duties Act. The tax slabs are from 0.5% to 3% of the value of your home and depend partly on the date of the last transfer. The tax rate also depends on the year of the initial property registration.
Quebec also considers whether you are a Canadian citizen or permanent resident, with non-residents subject to some speculation taxes. The municipalities and regions have their own, often differing municipal land transfer tax policies for permanent residents and nonresidents. For most provinces in Quebec, except Montreal, you will have to pay a tax of $5,652 on a $500,000 purchase.
Montreal
Montreal’s land transfer tax slabs are slightly different from Quebec’s. The marginal tax rates are within 0.5% to 2.5%. In most cases, you will pay a total land transfer tax of $5,949 on a $500,000 property in Montreal.
Saskatchewan
Saskatchewan does not directly charge a land transfer tax. You may need to pay a title transfer fee of 0.3%, which is bundled with the administration fee. The fee will be $1,500 for a purchasing price of $500,000.
Northwest Territories
The Northwest Territories levy a $1.50 tax on property value up to $1,000,000, which will be $1 for every $5,000 of additional value. The minimum fee is $100. You will pay $750 in tax to purchase a $500,000 property in Yellowknife, Northwest Territories.
Nunavut
Nunavut does not charge a land transfer tax. You won’t have to pay any fees for land transfer to purchase a $500,000 property in Iqaluit or elsewhere in Nunavut.
Ontario
The Ontario government levies land transfer tax rates as follows on purchasing prices:
- Up to $55,000 property value: 0.5% tax
- Property value between $55,000 and $250,000: 1% tax
- Property value between $250,000 and $400,000: 1.5% tax
- Over $400,0000 property value or value of homes purchased: 1.5%
The tax rate will be 2.5% for properties exceeding a property value of $2,000,000 with two individual family residences. In addition, to discourage nonresidents from creating pressure on the local real estate market, Ontario implements a 25% non-resident speculation tax.
The land tax on a $500,000 property in Guelph, Ontario, will be $6,475. Toronto properties, however, are subject to additional taxation.
Yukon
Yukon does not charge a land transfer tax. You will only need to pay administrative fees such as an assurance fee and mortgage fee, which will total $162 for a property costing $500,000 in Whitehorse, Yukon.
Toronto
Toronto levies a municipal land transfer tax structure, so you will have to add Toronto land transfer tax on top of Ontario’s tax. That means you will pay $6,475 in provincial tax and $6,475 in municipal land transfer tax (or Toronto land transfer tax) to buy $500,000 worth of Toronto property based on its fair market value; for instance, this would apply to properties near Lake Ontario or the Greater Golden Horseshoe region.
Final Thoughts
Land transfer tax can add up to thousands of dollars in additional costs when buying a property. Luckily, several land transfer tax calculators are available to help you figure out a close estimate of how much you need to pay for your specific location. ratehub.ca tops our list as the most comprehensive and updated land transfer tax estimator in Canada. Consultation with a real estate lawyer might help you find the best tax rates.
Frequently Asked Questions (FAQs)
The land transfer tax you will need to pay in Canada depends on the province or territory you are buying in and sometimes on the principal mortgage amount. Generally, your local government may have a graduated system of marginal tax rates or land transfer tax based on the value of properties purchased and mortgage amount.
Land transfer tax is usually calculated by multiplying the purchase price of your property and the applicable mortgage amount by the applicable provincial or territorial rate. Additional municipal and regional land transfer tax based on the purchase price may also apply depending on the location of the property.
Alberta and Saskatchewan are the only two provinces in Canada that do not have a land transfer tax on purchase prices. You may also qualify for land transfer tax exemptions on purchase prices in other provinces.
Some provinces offer exemptions or rebates for first-time homebuyers, which can help reduce your overall land transfer taxes costs. Additionally, there may be other exemptions available depending on your specific situation, such as when the property transfer is due to marriage, divorce, or inheritance.
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- Branch PT, Finance M of, Division R. Property transfer tax – Province of British Columbia. www2.gov.bc.ca. Accessed December 11, 2022. https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
- Finance | Province of Manitoba. Province of Manitoba – Finance. Accessed December 11, 2022. https://www.gov.mb.ca/finance/other/landtransfertax.html
- Government of New Brunswick C. An Introduction to Real Property Taxation – Finance. www2.gnb.ca. Published February 12, 2013. Accessed December 11, 2022. https://www2.gnb.ca/content/gnb/en/departments/finance/taxes/real_property.html
- Calculating Land Transfer Tax | Land Transfer Tax. ontario.ca. Accessed December 11, 2022. https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax
- Municipal Land Transfer Tax (MLTT). City of Toronto. Published November 16, 2017. Accessed December 11, 2022. https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/
- Non-resident Deed Transfer Tax and Property Tax. novascotia.ca. Accessed December 11, 2022. https://novascotia.ca/finance/en/home/taxation/tax101/non-resident-deed-transfer-tax.html