Alberta land transfer tax calculator

What is the Alberta land transfer tax?

Probably one of the largest closing costs for buyers, the Alberta land transfer tax is a one time fee paid to your provincial government when a property or home is transferred from the seller to you. Tax rates will also vary depending on the province your property is located in. In Alberta, the land transfer tax (officially known as title registration and mortgage registration fees), are applied to every home or property once purchased and will depend on the value of the property and the percentage of your down payment.

Do I have to pay a land transfer tax in Alberta?

Yes. There is some form of land transfer tax that all provinces and territories in Canada have, but the exact amount will depend on the location and will vary. You are required to pay land transfer tax on your property purchase unless you qualify for a rebate/exemption.

How do I use this Alberta land transfer tax Calculator?

You will need a few key pieces of information, such as your purchase price, down payment and location. This will quickly give you an estimate of your Alberta land transfer taxes, however this is just an estimate and you should work with your advisor to get the exact amount. Here are some land transfer fees on the property value based in Edmonton, Alberta (keep in mind this does not include legal fees or the fee for the mortgage amount):

What is the purpose of land transfer tax?

The land transfer tax is a source of revenue for the provinces that collect them and goes towards paying for public services and infrastructure.

Does Alberta have municipal land transfer tax?

Calgary and Edmonton do not have municipal land transfer tax and do not offer any rebates or exemptions.

Who pays the land transfer tax?

Anyone who purchases a property must pay a land transfer tax to the province in which they bought the property if required and it must be paid when the transaction closes.

How can I avoid the Alberta land transfer tax?

Alberta has some of the lowest land transfer tax requirements in Canada. Some provinces provide a first-time home buyers land transfer tax rebate, however there are no rebates in Alberta. There are no ways to lower your Alberta land transfer tax directly, but you might be able to reduce the transfer tax slightly by making a larger down payment on your mortgage since the calculation does take your mortgage and down payment into consideration.

How much is Alberta commercial land transfer tax?

If you are purchasing a commercial property in Alberta, there will be no land transfer tax. Keep in mind that there will still be closing costs you will have to consider.

Do all provinces in Canada have land transfer tax?

No, not all provinces in Canada have land transfer tax. The provinces that have land transfer tax are:
Alberta
Ontario
Quebec
British Columbia
Manitoba
Saskatchewan
Nova Scotia
New Brunswick
Prince Edward

Few areas in Canada will charge both provincial and municipal land transfer tax. In fact, only three cities in Canada have both: Toronto, Montreal and Halifax.

All other remaining provinces and territories charge registration fees based on the value of the property being bought or transferred. These fees are usually much lower compared to typical Canadian land transfer tax rates.

How do I calculate the Alberta land transfer tax and fees?

Alberta land transfer tax is typically based on the value of the property and the percentage of your down payment. It’s generally not very expensive and homeowners, even first-time home buyers, are able to pay their transfer tax without issues.

Alberta Land Transfer Tax and Fees Chart

Let’s assume you are purchasing a house worth $500,000 with a 20% down payment and a $400,000 mortgage. See below for an example Alberta land transfer tax formula, which includes calculations for land transfer fee on the property value and land transfer fee on the mortgage amount:

1. Land transfer fee on the property value
   
   $500,000 property value ÷ $5,000 tax portion size
   = 100 portions
   
   $50 base + ($2 x 100 portions)
   = $250 land transfer fee on the property value


2. Land transfer fee on the mortgage amount
   
   $400,000 mortgage amount ÷ $5,000 tax portion size
   = 80 portions
   
   $50 base + ($1.50 x 80 portions)
   = $170 land transfer fee on the mortgage amount


3. Total Alberta land transfer tax
   
   $250 fee on the property value + $170 fee on the mortgage amount
   Alberta land transfer tax = $420

These calculations can sometimes be confusing, which is why we have created the Alberta land transfer tax calculator. Simply input your details and you’ll instantly get an estimate.

Can the Alberta land transfer tax be rolled into my mortgage?

It’s a rule of thumb to budget around 2-3% of the purchase price of your property to go towards closing costs (or use our closing cost calculator to get a more exact figure). Alberta land transfer tax cannot be added into your mortgage and must be paid as soon as you take possession of the property from the seller on closing day.

In the process of purchasing a home? Check out Perch’s Guide to Buying a Home at any step of your home buying process to get access to free tools and resources that will help you before and after your closing date. You can also sign up today for a Perch profile to connect with a realtor or mortgage advisor today.