That final merchandise known as a land switch tax (LTT), and it applies all over the place besides in Alberta, Saskatchewan and all three territories, which as a substitute cost land switch charges. Regardless of the variations in terminology, the thought is similar: The customer pays a one-time price to the native authorities every time a property modifications arms. Under, you can see detailed data on land switch taxes, charges and rebates:
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What’s a land switch tax?
More often than not, LTT is calculated as a proportion of the house’s sale value and is due while you full your private home buy. It’s a part of your closing prices, which suggests you’ll want the money readily available to pay for it at closing.
You should utilize a land switch tax calculator to estimate how a lot you’ll must pay. Relying on your private home’s worth, LTT can simply value 1000’s of {dollars}. The charges charged in Alberta, Saskatchewan and the territories are usually a lot decrease, however what you pay can nonetheless be within the 1000’s relying on the price of the property. Lastly, in Montreal and Toronto, the tax is calculated in another way than in different cities of their respective provinces. See the chart under for extra perception.
What’s LTT?
Land switch tax—or land switch charges in Alberta, Saskatchewan and the three territories—is paid by a house purchaser as a part of closing prices for actual property. The quantity is usually based mostly on the promoting value and is paid to the province or territory the place the property is positioned. For those who purchase a house in Toronto or Montreal, you’ll need to pay municipal land switch tax as effectively.
Learn “What’s land switch tax?” within the MoneySense Glossary.
How is land switch tax calculated?
Each province and territory in Canada expenses on property transfers, as both a price or a tax. And a few municipalities cost a tax known as municipal land switch tax (MLTT). More often than not, LTT is calculated as a proportion of the worth of your private home, and most tax charges are marginal, which suggests the scale of the tax will increase as the house’s worth will increase. Land switch charges are usually based mostly on the acquisition value of the house, and they’re usually accompanied by a mortgage registration price, based mostly on the scale of the mortgage used to buy the property.
Learn the way a lot you may anticipate to pay in taxes by inputting the asking costs and extra into the land switch tax calculator above.
Land switch taxes at a look
The next desk offers an outline of the land switch tax or charges paid in every province and territory, in addition to in Toronto and Montreal, which cost a unique fee than their respective provinces. The quantities listed are based mostly on properties bought for $696,166—the common value of a house in Canada in October 2024.
| Province | Land switch tax | Charges | First-time house purchaser (FTHB) & different rebates |
|---|---|---|---|
| Alberta | $0 | Estimated land switch price: $278.47. Plus, mortgage registration price (based mostly on mortgage quantity). | n/a |
| British Columbia | $11,923 (provincial) | n/a | FTHB rebate: Full refund for houses bought for $500,000 or much less; partial refund for houses between $500,001 and $525,000. Newly constructed houses exemption: Full refund for houses bought for $1,100,000 or much less; partial refund for houses between $1,100,001 and $1,150,000 for qualifying houses. |
| Manitoba | $11,573 (provincial) | n/a | n/a |
| New Brunswick | $6,961.66 (provincial) |
n/a | n/a |
| Newfoundland & Labrador | $2,883 (provincial) | n/a | n/a |
| Nova Scotia | $10,442 (municipal) | n/a | n/a |
| Ontario (outdoors of Toronto) | $10,398 (provincial) | n/a | FTHB rebate: As much as $4,000. |
| Toronto | $20,797 (provincial & municipal) | n/a | FTHB rebate: As much as $4,000 from the province and as much as $4,475 from town, for a complete potential refund of $8,475. |
| Prince Edward Island | $6,962 (provincial) | n/a | FTHB rebate: Full refund for houses bought for $200,000 or much less. |
| Quebec (outdoors of Montreal) | $8,942 (municipal) | n/a | n/a |
| Montreal | $9,923 (municipal) | n/a | n/a |
| Saskatchewan | $0 | Estimated land title switch price: $2,134. | n/a |
| Northwest Territories | $0 | Estimated land switch price: $1,067. Plus, mortgage registration price (based mostly on mortgage quantity). | n/a |
| Nunavut | $0 | Estimated land registration price: $1,067. Plus, mortgage registration price (based mostly on mortgage quantity). | n/a |
| Yukon | $0 | Land switch price of $350. Plus, a mortgage registration price and a attainable assurance price. | n/a |
Land switch taxes and charges by province and territory
Alberta
Alberta is among the few provinces in Canada that doesn’t cost a LTT. As an alternative, it expenses a switch of land registration price and a mortgage registration price.
- The switch of land registration price covers the executive value of fixing the authorized title of the land. The customer is charged $50 plus $2 for each $5,000 of the worth of the property.
- The mortgage registration price covers the issuance of the mortgage. The customer is charged $50 plus $1.50 for each $5,000 of the principal mortgage quantity.
British Columbia
When shopping for property in British Columbia, the quantity of the LTT relies on the worth of the property. In B.C., consumers pay a marginal tax fee calculated as a proportion of the house’s worth. The tax charges are:
