That final merchandise is 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 customer pays a one-time payment to the native authorities at any time when a property adjustments palms. Beneath, you’ll find 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 proportion of the house’s sale worth and is due while you full your house buy. It’s a part of your closing prices, which suggests you’ll want the money 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 house’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 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 primarily based on the promoting worth and is paid to the province or territory the place the property is positioned. Should you purchase a house in Toronto or Montreal, you’ll must pay municipal land switch tax as nicely.
Learn “What is land transfer tax?” within the MoneySense Glossary.
How is land switch tax calculated?
Each province and territory in Canada costs on property transfers, as both a payment 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 house, 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 primarily based on the acquisition worth of the house, and they’re usually accompanied by a mortgage registration payment, primarily based on the dimensions of the mortgage used to buy the property.
Learn how 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 summary of the land switch tax or charges paid in every province and territory, in addition to in Toronto and Montreal, which cost a unique charge 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 house purchaser (FTHB) & different rebates |
|---|---|---|---|
| Alberta | $0 | Estimated land switch payment: $278.47. Plus, mortgage registration payment (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 the 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 payment: $2,134. | n/a |
| Northwest Territories | $0 | Estimated land switch payment: $1,067. Plus, mortgage registration payment (primarily based on mortgage quantity). | n/a |
| Nunavut | $0 | Estimated land registration payment: $1,067. Plus, mortgage registration payment (primarily based on mortgage quantity). | n/a |
| Yukon | $0 | Land switch payment of $350. Plus, a mortgage registration payment and a doable assurance payment. | n/a |
Land switch taxes and costs by province and territory
Alberta
Alberta is without doubt one of the few provinces in Canada that doesn’t cost a LTT. As a substitute, it costs a switch of land registration payment and a mortgage registration payment.
- The switch of land registration payment covers the executive value 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 payment 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 charge calculated as a proportion of the house’s worth. The tax charges are:
