Canada Land Transfer Tax Calculator

Before you finalize the purchase of your home, you’ll want to ensure that you’ve put enough money aside to cover items associated with closing the deal. There a number of significant fees related to transferring the property from seller to buyer – known as closing costs – so it’s best that you’re prepared to avoid any unpleasant surprises. nesto’s Land Transfer Calculator will help simplify your budgeting efforts for this significant closing cost.

Land transfer tax calculator

What is Land Transfer Tax?

Land transfer tax (LTT) is one of the largest fees associated with the closing of your home and is often overlooked when calculating your total purchase amount. LTT is paid by homebuyers to the province when the ownership of the home or property is transferred from the seller to the buyer. In some parts of Canada, buyers are also required to pay a municipal land transfer tax (ie, Toronto).

The LTT payment is typically arranged through your lawyer. It’s an upfront fee that can’t be included in your mortgage payment, so it’s extremely important that you factor in this cost when establishing your overall home buying budget. In some provinces/municipalities, first-time buyers may be eligible for a refund of all, or part of the land transfer tax. See: First-Time Home Buyer Mortgage Guide

Tip: In some provinces – Ontario, British Columbia and Prince Edward Island – and the City of Toronto, first-time home buyers are eligible for a refund of all or part of the Land Transfer Tax

 

How to estimate Land Transfer Tax

Land transfer tax rates vary from one province to another but are generally calculated based on the purchase price of your property as well as the location. Each province sets its own LTT rates and, in some cities (ie, Toronto), municipal land transfer tax is also required. You can visit your provincial/municipal government website to determine the rate that applies to you.

As a general rule of thumb, you should budget 1-2% of your property’s value to cover the tax. Also, keep in mind that tax rates will rise in conjunction with the purchase price. In other words, the higher the price of your home, the higher the rate and, therefore, the higher the tax. 

Important: Plan to spend, on average, 1-2% of the purchase price of your home on Land Transfer Tax

 

How to use the Land Transfer Tax Calculator

To provide you with an accurate amount of the tax you can expect to pay, use nesto’s Land Transfer Tax Calculator as a quick and easy online tool. All you need to do is input some key information, such as the city and province where the home is located and the purchase price of the home, and check off whether you’re a first-time home buyer. The latter is used to calculate tax rebates available to first-timer buyers to help reduce the impact of land transfer fees, and are incorporated directly into the calculation. That’s it! The calculator will do the rest and provide you with the amount you’ll be required to pay at the time of closing. 

It’s essential that you have a clear idea of all costs associated with buying a home. The land transfer tax is an important factor, so don’t be caught off guard. Calculate the amount as soon as you’re able and budget accordingly to ensure the closing date is not delayed.

 

Land Transfer Tax by province

Land transfer tax rates vary from one province to another but are generally calculated based on the purchase price of your property as well as the location. Each province sets its own LTT rates and, in some cities (ie, Toronto), municipal land transfer tax is also required. You can visit your provincial/municipal government website to determine the rate that applies to you.

Here’s how the Land Transfer Tax is calculated when you buy a property in Ontario:

  • Up to $55,000: 0.5%
  • $55,001-$250,000: 1.0%
  • $250,001-400,000: 1.5%
  • $400,000+: 2.0%
  • $2,000,000+ where the land contains one or two single-family residences: 2.5%.

Here’s how the Land Transfer Tax is calculated when you buy a property in Quebec:

  • First $50,000: 0.5%
  • Between $50,001-$250,000: 1.0%
  • After $250,001: 1.5%

The calculation is different for those purchasing a property in Montreal. Here’s how the Land Transfer Tax is calculated when you buy a property in Montreal:

  • First $50,000: 0.5%
  • Between $50,001-$250,000: 1.0%
  • Between $250,001-$500,000: 1.5%
  • Between $500,001-$999,999: 2.0%
  • After $1,000,000: 2.5%

 

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