Question 9

Is there a land transfer tax applicable to the usual transfer?  How is it known?  How much? Are rebates available?

Alberta

There is no transfer tax in Alberta.

British Columbia

Property Transfer Tax is paid when an interest in a property is acquired or purchased and is payable on the fair market value of the property being transferred. The tax must be paid when changes to a certificate of title is registered with the land title office.

The amount is 1% for the first $200,000 and 2% for any value above that. There are a number of exemptions that may apply, exempting all or a portion of the transfer from Property Transfer Tax. A list of exemptions can be found here: http://www.sbr.gov.bc.ca/business/property_taxes/property_transfer_tax/exemptions.htm

Manitoba:

Transfers of titled freehold land are subject to land transfer tax.

  • No tax on sworn values of $30,000.00 or less;
  • ½ of 1% on sworn values between $30,000.00 and $90,000.00;
  • 1% on sworn values between $90,000.00 and $150,000.00;
  • 1½% on sworn values between $150,000.00 and $200,000.00; and,
  • 2% on sworn values in excess of $200,000.00.

Comments:

Transfers of beneficial ownership (where title remains in the name of a trustee) are not subject to land transfer tax. Neither is long-term leasing. There are some exemptions (e.g. inter-spousal and inter-generational farmland transfers.)

New Brunswick

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Newfoundland and Labrador

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Northwest Territories

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Nova Scotia

Although the Deed Transfer Tax is collected by the Province of Nova Scotia when deeds are recorded, it is a municipal tax which varies from municipality to municipality. Not all municipalities charge the tax.

The deed transfer tax affidavit discloses the purchase price.

The range is between 0.5% and 1.5% of the purchase price.

There are no rebates.

Comments:

Municipalities with a deed transfer tax, charge it on all transactions for valuable consideration with a few limited exceptions. The tax is based on the purchase price.

When recording a Deed, it is mandatory to file a sworn Deed Transfer Tax Affidavit. The parties’ names, contact information and price paid for the property is included in the Affidavit. The tax is calculated as a percentage of the price listed in the Affidavit.

Some transfers are exempt, such as transfers for no consideration and transfers between spouses or former spouses.

With new construction, to avoid charging tax on tax, the Affidavit includes the contract price minus HST.

Nunavut

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Ontario

There is a provincial land transfer tax applicable to all land (https://www.fin.gov.on.ca/en/tax/ltt/) and a municipal land transfer tax for property within the City of Toronto boundary (https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/).

Ontario LTT Rebate:

As of January 1, 2017, no land transfer tax will be payable by qualifying first‑time purchasers (similar definition as below) on the first $368,000 of the value of the consideration for eligible homes. First-time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

MLTT Rebate:

For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, and a rebate of up to $4,475.00. The definition of a first-time purchaser is:

  • the purchaser is at least 18 years of age
  • the purchaser must occupy the home as their principal residence no later than nine months after the date of the conveyance or disposition
  • the purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time
  • if the purchaser has a spouse, the spouse cannot have owned a home, nor had any ownership interest in a home, anywhere in the world while they were the purchaser’s spouse, and:
  • the purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate

Since April 21, 2017, Ontario also has a Non-resident Speculation Tax of 15% on residential property acquired by individuals who are not citizens or permanent residents of Canada or by a foreign corporations and taxable trustees. This tax is applicable to property within the Greater Golden Horseshoe Region (Toronto & southern Ontario). (https://www.fin.gov.on.ca/en/bulletins/nrst/)

Comments:

When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes. The electronic registration system calculates and transfers the tax from the lawyer’s bank account when the documents are submitted for registration.

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

In some cases, land transfer tax is based on the fair market value of the land, such as in the following examples:

  • transfer of a lease with a remaining term that can exceed 50 years
  • transfer of land from a corporation to one of its shareholders, or
  • transfer of land to a corporation, if shares of the corporation are issued.

If an agreement of purchase and sale is entered into after November 14, 2016, and registration or the disposition occurs on or after January 1, 2017, the tax rates on the value of the consideration are as follows:

  • amounts up to and including $55,000: 0.5%
  • amounts exceeding $55,000, up to and including $250,000: 1.0%
  • amounts exceeding $250,000, up to and including $400,000: 1.5%
  • amounts exceeding $400,000: 2.0%
  • amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.

Toronto LTT:

For all conveyances and unregistered dispositions of beneficial interest in land made on or after March 1, 2017.

For property containing at least one, and not more than two, single family residences with a consideration value of:

  • Value of ConsiderationMLTT Rate
  • Up to and including $55,000.000.5%
  • $55,000.01 to $250,000.001.0%
  • $250,000.01 to $400,000.001.5%
  • $400,000.01 to $2,000,000.002.0%
  • Over $2,000,000.002.5%

For all other non-single family residences with a consideration value of:

  • Value of ConsiderationMLTT Rate
  • Up to and including $55,000.000.5%
  • $55,000.01 to $250,000.001.0%
  • $250,000.01 to $400,000.001.5%
  • Over $400,000.002.0%

Prince Edward Island

Yes, the purchaser will be charged a land transfer tax equivalent to the greater of 1% of the purchase price or 1% of the assessed value. Some exemptions exist.

A tax refund is available in limited circumstances.

Comments:

A land transfer tax is charged in a usual transaction under s. 3(1) of the Real Property Transfer Tax Act, R.S.P.E.I. 1988, Cap. R-5.1 (Act):

3. (1) Every person who tenders for registration in the province a deed shall, before the deed is registered, pay a tax computed at the rate of one percent of the greater of (a) the consideration for the transfer; and (b) the assessed value of the real property.

In certain circumstances, a transfer of real property is exempt. 21 exemptions are listed in section 4 of the Act and a first time homebuyers’ exemption is provided in section 5 of the Act. First time homebuyers who did not qualify for the first time homebuyers’ exemption at the time of registration due to their failure to meet the residency requirements can receive a refund of the tax paid if they subsequently occupy the property for 183 consecutive days following the date the deed is registered (see section 5 of the Act).

Quebec

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Saskatchewan

Transfer tax is 0.37% of the value (typically purchase price). No rebate available.

Value confirmed by way of sworn affidavit of transferee.

Yukon Territory

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