That final merchandise is named a land switch tax (LTT), and it applies in every single place besides in Alberta, Saskatchewan and all three territories, which as an alternative cost land switch charges. Regardless of the variations in terminology, the thought is identical: The customer pays a one-time charge to the native authorities at any time when a property modifications palms. Under, you’ll discover detailed info 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 share of the house’s sale value and is due whenever you full your house buy. It’s a part of your closing prices, which implies you’ll want the money available to pay for it at closing.
You need to use a land switch tax calculator to estimate how a lot you’ll must pay. Relying on your house’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 otherwise than in different cities of their respective provinces. See the chart beneath 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 situated. In case you purchase a house in Toronto or Montreal, you’ll need to pay municipal land switch tax as nicely.
Learn “What’s land switch tax?” within the MoneySense Glossary.
How is land switch tax calculated?
Each province and territory in Canada prices 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 house, and most tax charges are marginal, which implies the scale of the tax will increase as the house’s worth will increase. Land switch charges are sometimes based mostly on the acquisition value of the house, and they’re usually accompanied by a mortgage registration charge, based mostly on the scale of the mortgage used to buy the property.
Learn the way a lot you possibly can count on 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 gives an summary of the land switch tax or charges paid in every province and territory, in addition to in Toronto and Montreal, which cost a distinct fee than their respective provinces. The quantities listed are based mostly on properties bought for $696,166—the common price 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 charge: $278.47. Plus, mortgage registration charge (based mostly 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 (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 properties 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 charge: $2,134. | n/a |
| Northwest Territories | $0 | Estimated land switch charge: $1,067. Plus, mortgage registration charge (based mostly on mortgage quantity). | n/a |
| Nunavut | $0 | Estimated land registration charge: $1,067. Plus, mortgage registration charge (based mostly on mortgage quantity). | n/a |
| Yukon | $0 | Land switch charge of $350. Plus, a mortgage registration charge and a potential assurance charge. | n/a |
Land switch taxes and costs by province and territory
Alberta
Alberta is likely one of the few provinces in Canada that doesn’t cost a LTT. As a substitute, it prices 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 customer 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 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 is predicated 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: