That final merchandise known as a land switch tax (LTT), and it applies in all places besides in Alberta, Saskatchewan and all three territories, which as a substitute cost land switch charges. Regardless of the variations in terminology, the concept is identical: The client pays a one-time charge to the native authorities every time a property modifications palms. Under, you will see detailed info on land switch taxes, charges and rebates:
Use our mortgage fee calculator
Our calculator will allow you to perceive what a mortgage will price you in actual phrases whereas factoring for rates of interest, amortization interval, mounted or variable phrases, and extra.
What’s a land switch tax?
More often than not, LTT is calculated as a share of the house’s sale worth and is due whenever you full your own 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 need to use a land switch tax calculator to estimate how a lot you’ll have to pay. Relying on your own home’s worth, LTT can simply price hundreds of {dollars}. The charges charged in Alberta, Saskatchewan and the territories are sometimes a lot decrease, however what you pay can nonetheless be within the hundreds 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 often primarily based on the promoting worth and is paid to the province or territory the place the property is situated. Should you purchase a house in Toronto or Montreal, you’ll should pay municipal land switch tax as properly.
Learn “What is land transfer tax?” within the MoneySense Glossary.
How is land switch tax calculated?
Each province and territory in Canada expenses on property transfers, as both a charge 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 share of the worth of your own 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 sometimes primarily based on the acquisition worth of the house, and they’re typically accompanied by a mortgage registration charge, primarily based on the scale of the mortgage used to buy the property.
Learn how a lot you’ll be able to 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 primarily based on properties bought for $696,166—the average cost of a home in Canada in October 2024.
| Province | Land switch tax | Charges | First-time residence purchaser (FTHB) & different rebates |
|---|---|---|---|
| Alberta | $0 | Estimated land switch charge: $278.47. Plus, mortgage registration charge (primarily based on mortgage quantity). | n/a |
| British Columbia | $11,923 (provincial) | n/a | FTHB rebate: Full refund for properties bought for $500,000 or much less; partial refund for properties between $500,001 and $525,000. Newly constructed properties exemption: Full refund for properties bought for $1,100,000 or much less; partial refund for properties between $1,100,001 and $1,150,000 for qualifying properties. |
| 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 (exterior 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 properties bought for $200,000 or much less. |
| Quebec (exterior of Montreal) | $8,942 (municipal) | n/a | n/a |
| Montreal | $9,923 (municipal) | n/a | n/a |
| Saskatchewan | $0 | Estimated land title switch charge: $2,134. | n/a |
| Northwest Territories | $0 | Estimated land switch charge: $1,067. Plus, mortgage registration charge (primarily based on mortgage quantity). | n/a |
| Nunavut | $0 | Estimated land registration charge: $1,067. Plus, mortgage registration charge (primarily based on mortgage quantity). | n/a |
| Yukon | $0 | Land switch charge of $350. Plus, a mortgage registration charge and a doable assurance charge. | 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 a substitute, it expenses a switch of land registration charge and a mortgage registration charge.
- The switch of land registration charge covers the executive price of adjusting the authorized title of the land. The client is charged $50 plus $2 for each $5,000 of the worth of the property.
- The mortgage registration charge covers the issuance of the mortgage. The client 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 share of the house’s worth. The tax charges are:
