Depending on where you live,Land Transfer Taxes by province

Purchasers in most large Canadian centres 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 Taxes) 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 complicated multi-tiered taxation systems where the amount of tax is geared to the selling price of the house. The following chart illustrates Land Transfer Taxes by province.

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

ONTARIOLand 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

The City of Toronto is a special case. In Toronto, home buyers must pay the Ontario Land Transfer Tax and, in addition, must pay a Toronto Land Transfer Tax. The calculation formula for the Toronto Land Transfer Tax is:
Up to $55,000 X .5 % of total property value
From $55,000 to $400,000 X 1 % of total property value
From $400,000 up X 2 % of total property value

For example, on the purchase of a $600,000 home in Toronto the buyer will have to pay a total of $16,200 in Land Transfer Taxes, almost 3% of the purchase price! To further complicate matters, first time buyers get a break on Land Transfer Taxes: the Province of Ontario provides a $2,000 credit, and the City of Toronto exempts the first $400,000. Click here for a calculator that will determine what your total Land Transfer Tax will be, depending on whether the house is in the City of Toronto and on whether you are a first time buyer.

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