Purchasers in most large
Canadian centers can add Land
Transfer Taxes to their list of
closing costs.
Unless you live in Alberta,
Saskatchewan, or rural Nova Scotia,
land transfer taxes (or property
purchase tax) are a basic fact of
life. These taxes, levied on
properties that are changing hands,
are the responsibility of the
purchaser. Depending on where you
live, taxes can range from a half a
per cent to two per cent of the
total value of the property.
Many provinces have multi-tiered
taxation systems that can prove
complicated. If you purchase a
property for $260,000 in Ontario,
for example, .5 per cent is charged
on the first $55,000, 1 per cent is
charged on $55,000 - $250,000, while
the $250,000 - $400,000 range is
taxed at 1.5 per cent. Your total
tax bill? $2,375.00.
The following chart illustrates
Land Transfer Taxes by province.
ONTARIO Land Transfer Tax
Up to $55,000 X .5 % of total
property value
From $55,000 to $250,000 X 1 % of
total property value
From $250,000 to $400,000 X 1.5 % of
total property value
From $400,000 up X 2 % of total
property value
BRITISH COLUMBIA
Property Purchase Tax
Up to $200,000 X 1 % of total
property value
From $200,000 up X 2 % of total
property value
MANITOBA
Land Transfer Tax
Up to $30,000 N/A
From $30,000 to $90,000 X .5 % of
total property value
From $90,000 to $150,000 X 1 % of
total property value
From $150,000 up X 1.5 % of total
property value
QUEBEC
Transfer Tax
Up to $50,000 X .5 % of total
property value
From $50,000 to $250,000 X 1 % of
total property value
From $250,000 up X 1.5 % of total
property value
NOVA SCOTIA
Land Transfer Tax
Halifax Metro
1.5 per cent on total property value
Ontario Land
Transfer Tax Explained
Ontario Land Transfer
Tax
0.5% - on the first $55,000
1.0% - on portion between
$55,000 - $250,000
1.5% - on balance over
$250,000
2.0% - on anything over
$400,000 Qualifying first time
buyers receive a $2000
credit
Toronto Land Transfer
Tax
0.5% - on the first $55,000
1.0% - on portion between
$55,000 - $400,000
2.0% - on anything over
$400,000 First time buyers are
exempt on the first $400,000
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