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LAND TRANSFER TAX
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 tax) 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
multi-tiered taxation systems that can prove complicated. If you
purchase a property for $260,000 in Ontario, for example, .5 per cent is
charged on the first $55,000, 1 per cent is charged on $55,000 -
$250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent.
Your total tax bill? $2,375.00. The following chart illustrates Land
Transfer Taxes by province.
ONTARIO
Land 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
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
Contact us for expert advice about buying a
home in your area.
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