Land Transfer Taxes
Land Transfer Taxes (LTT) in Canada are fees paid to the provincial or municipal government when a property is purchased - this is an extra cost at closing that you need to pay in cash (LTTs cannot be lumped into a mortgage). The amount is calculated as a percentage of the property's purchase price, and it varies by province and sometimes by municipality. Here's an overview:
Land Transfer Taxes by Province
Land transfer taxes are set independently by each province:
Alberta
No land transfer tax. Instead, buyers pay a much smaller title registration fee.
Title registration fee is $5 per $5,000 of property value.
Mortgage registration fee is $5 per $5,000 of property value.
British Columbia
1% on the first $200,000
2% on $200,001–$2,000,000
3% on $2,000,001–$3,000,000
5% on amounts over $3,000,000
Manitoba
0% on the first $30,000
0.5% on $30,001–$90,000
1% on $90,001–$150,000
1.5% on $150,001–$200,000
2% on amounts over $200,000
Newfoundland and Labrador
0.4% on the purchase price (or assessed value) + a $100 registration fee.
New Brunswick
Flat rate of 1% of the property's purchase price.
Nova Scotia
Rates vary by municipality, typically 1–1.5%. Known as a Deed Transfer Tax.
Ontario
0.5% on the first $55,000
1% on $55,001 – $250,000
1.5% on $250,001 – $400,000
2% on $400,001 – $2,000,000
2.5% on amounts over $2,000,000
Toronto: Extra municipal land transfer tax, which more than doubles the overall LTT paid.
0.5% on the first $55,000
1.0% on $55,001 - $250,000
1.5% on $250,001 - $400,000
2.0% on $400,001 - $2M
2.5% on $2M - $3M
3.5% on $3M - $4M
4.5% on $4M - $5M
5.5% on $5M - $10M
6.5% on $10M - $20M
7.5% on $20M
Prince Edward Island
1% on the property value above $30,000.
Exemptions for first-time homebuyers.
Quebec
0.5% on the first $55,200
1% on $55,201–$276,200
1.5% on $276,201–$552,300
3% on amounts over $552,300
Saskatchewan
No land transfer tax. Instead, buyers pay a much smaller title registration fee.
Territories (Yukon, Northwest Territories, Nunavut)
Minimal registration fees instead of land transfer taxes.
Rebates and Exemptions
Many provinces offer rebates to first-time homebuyers. For example: Ontario: Up to $4,000, BC: Full exemption for homes under $500,000 (partial for homes $500,001–$525,000). Unfortunately investors are not eligible for any rebates or exemptions.
How It's Paid
LTTs are paid as part of your closing costs to your lawyer. This is extra cash required, in addition to your down-payment (FYI 20% is the minimum down-payment required for an investment property in Canada).
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