Last updated: March 2, 2022
What this tool is all about:
This tool lets you get an estimate of what your land transfer tax will be when you purchase a new property.
Anyone who purchases a property must pay a land transfer tax to the province in which they bought the property and it must be paid when the transaction closes. Depending on your location, residents might have to pay both provincial and municipal land transfer tax.
Depending on where you are located, if you are a first-time homebuyer, you might be eligible for a land transfer tax rebate. This can either eliminate or reduce the amount of land transfer tax you will have to pay. Keep in mind that each province has different rebate amounts and eligibility criteria as well.
The amount of land transfer tax you will have to pay will depend on your location, as the land transfer tax rate varies in different provinces. In some cases, the land transfer tax can be calculated depending on the purchase price of the property and in other cases it can be based on the fair market value.
Your lawyer should be the one to help arrange for the payment of the land transfer tax, typically by adding it to your closing costs. In most cases, payment should be made as soon as the property is transferred to your name on closing day. If not, there will be an invoice mailed to your home within the first month, where you will be required to pay the tax in full. Keep in mind that the land transfer tax must be paid in full and cannot be paid in installments, so it’s important that you budget for this accordingly.
No, the land transfer tax is not the same as a sales tax on your home. When you purchase a newly constructed home, there will be a sales tax associated with the purchase. You will have to pay both sales and land transfer taxes.