That final merchandise is known as a land switch tax (LTT), and it applies all over the place 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 similar: The client pays a one-time price to the native authorities at any time when a property adjustments arms. Under, you will see 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 value and is due once you full your property 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 property’s worth, LTT can simply price 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 often primarily based on the promoting value and is paid to the province or territory the place the property is situated. If you happen to purchase a house in Toronto or Montreal, you’ll must 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 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 property, 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 usually primarily based on the acquisition value of the house, and they’re typically accompanied by a mortgage registration price, primarily based on the scale of the mortgage used to buy the property.
Learn how a lot you’ll be able to 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 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 distinct fee than their respective provinces. The quantities listed are primarily based on properties bought for $696,166—the common price of a house in Canada in October 2024.
| Province | Land switch tax | Charges | First-time dwelling purchaser (FTHB) & different rebates |
|---|---|---|---|
| Alberta | $0 | Estimated land switch price: $278.47. Plus, mortgage registration price (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 (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 price: $2,134. | n/a |
| Northwest Territories | $0 | Estimated land switch price: $1,067. Plus, mortgage registration price (primarily based on mortgage quantity). | n/a |
| Nunavut | $0 | Estimated land registration price: $1,067. Plus, mortgage registration price (primarily based on mortgage quantity). | n/a |
| Yukon | $0 | Land switch price of $350. Plus, a mortgage registration price and a potential 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 price of fixing 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 price 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., patrons pay a marginal tax fee calculated as a proportion of the house’s worth. The tax charges are:
