[ad_1] Land Transfer Tax Calculator Buying a home is an exciting process with many unexpected costs. Beyond your down payment, you’ll also be responsible for paying legal fees, appraisal costs, title transfer costs and taxes to the province or municipality (or both). You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote I’m buying a homeI’m renewing/refinancing You will be leaving MoneySense. Just close the tab to return. That last item is called a land transfer tax (LTT), except in the provinces of Alberta and Saskatechewan, which describe those costs as land transfer fees. Despite the differences in terminology, the idea is the same: the buyer pays a one-time tax to the local government every time a property changes hands. What is a land transfer tax? Most of the time, LTT is calculated as a percentage of the home’s sale price and is due when you complete your home purchase. It’s part of your closing costs, which means you’ll need the cash on hand to pay for it at closing. You can use a land transfer tax calculator to estimate how much you’ll need to pay. Depending on your home’s value, LTT can easily cost thousands of dollars. The fees charged in Alberta and Saskatchewan are typically much smaller. How is land transfer tax calculated? Every province in Canada charges some form of tax on property transfers, and some municipalities charge an additional tax, known as municipal land transfer tax (MLTT). Most provinces charge their tax as a percentage of the value of your home, and most tax rates are marginal, which means the size of the tax increases as the home’s value increases. You can look up how much you can expect to pay, depending on where in Canada your home is located, or use a land transfer tax calculator. Alberta Alberta is one of the few provinces in Canada that does not charge LTT. Instead, it charges a transfer of land registration fee and a mortgage registration fee. The transfer of land registration fee covers the administrative cost of changing the legal title of the land. The buyer is charged $50 plus $2 for every $5,000 of the value of the property. The mortgage registration fee covers the issuance of the mortgage. The buyer is charged $50 plus $1.50 for every $5,000 of the principal mortgage amount. British Columbia When buying property in British Columbia, the amount of LTT is based on the value of the property. In B.C., buyers pay a marginal tax rate calculated as a percentage of the home’s value. The tax rates are: 1% on the first $200,000 2% on the portion from $200,001 to $2,000,000 3% on the portion from $2,000,001 to $3,000,000 5% on any amount over $3,000,000 Manitoba When buying a home in Manitoba, the LTT is based on the home’s value. Buyers also pay a flat registration fee. The marginal tax rates in Manitoba are: No tax on the first $30,000 0.5% on the portion from $30,001 to $90,000 1.0% on the portion from $90,001 to $150,000 1.5% on the portion from $150,001 to $200,000 2.0% on any amount over $200,000 New Brunswick Property buyers in New Brunswick do not have to worry about a marginal tax rate. Instead, they are taxed at a flat rate of 1% of the value of the property. Newfoundland & Labrador In Newfoundland and Labrador, LTT is governed by the Registration Deeds Act. Under this act, buyers pay a transfer tax based on the following formulas: $100 if the property value or mortgage is less than $500 $0.40 for every $100 of property value or mortgage over $500 Nova Scotia In Nova Scotia, the province’s LTT is called the deed transfer tax (DTT). It varies from municipality to municipality, with most charging 1% to 1.5%. Ontario Home buyers in Ontario pay a percentage of their home’s value as LTT. The tax rates are: 0.5% on the first $55,000 1.0% on the portion from $55,001 to $250,000 1.5% on the portion from $250,001 to $400,000 2.0% on the portion from $400,001 to $2,000,000 2.5% on any amount over $2,000,000 There’s also a 15% non-resident speculation tax for anyone who is not a citizen or permanent resident of Canada but is buying property in the Greater Golden Horseshoe Region. Prince Edward Island In Prince Edward Island, the LTT is called the real property transfer tax (RPTT). It’s calculated as 1% of the property’s purchase price. Quebec Quebec’s LTT works differently than in most provinces, because it is calculated and collected by municipalities. All properties in Quebec are taxed based on their “base amount,” which is calculated as the greater of: The home’s purchase price The amount listed on the deed of sale The value of the municipal assessment Once the base amount is determined, the buyer pays LTT based on the following scale: 0.5% on the first $50,000 1.0% on the portion from $50,001 to $250,000 1.5% on any amount over $250,000 Saskatchewan Saskatchewan doesn’t charge LTT. Instead, the buyer pays a land title or abstract transfer fee. This fee may be bundled into the buyer’s legal fees and is charged based on the home’s value: No fee if the value is less than $500 $25 fee if the value is between $501 and $8,400 0.3% of the total value if it is $8,401 or more Buyers also have to pay $166 to register the mortgage. Northwest Territories Those living in Canada’s territories must also pay LTT. In the Northwest Territories, for example, buyers pay both a land transfer fee and a mortgage fee. The Northwest Territory LTT is calculated based on the property’s value, for example: $1.50 for each $1,000 in value up to $1,000,000, with a minimum fee of $100 $1,500 for properties valued up to $1,000,000 plus $1 for each $1,000 thereafter The mortgage fee is calculated similarly: $1.00 for each $1,000 in value, with a minimum fee of $80.00. Nunavut
