That final merchandise known as 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 concept is identical: The customer pays a one-time price to the native authorities each time a property modifications fingers. Beneath, you’ll find 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 worth and is due whenever 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 use 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 hundreds 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 hundreds relying on the price of the property. Lastly, in Montreal and Toronto, the tax is calculated in a different 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 worth 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 should pay municipal land switch tax as properly.
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 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 dimensions of the tax will increase as the house’s worth will increase. Land switch charges are usually based mostly on the acquisition worth of the house, and they’re usually accompanied by a mortgage registration price, based mostly on the dimensions of the mortgage used to buy the property.
Learn the way 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 gives 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 special price 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 residence 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 costs by province and territory
Alberta
Alberta is among the few provinces in Canada that doesn’t cost a LTT. As an alternative, it prices 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., patrons pay a marginal tax price calculated as a proportion of the house’s worth. The tax charges are: