A transfer tax is payable in most provinces on any acquisition of real property. There is no such tax in Alberta, Saskatchewan, Newfoundland and Labrador, and the Territories, however, each of these provinces and the Territories do levy some form of registration fee on the transfer of real property.
In British Columbia, the general rate is 1% on the first CA$200,000 of the fair market value of the property and 2% on the balance of the fair market value of the property, subject to possible exemptions for first time home buyers.
In Manitoba, the general rate is 0% on the first CA$30,000 on the fair market value of the property, 0.5% on the fair market value of the property that exceeds CA$30,000 without exceeding CA$90,000, 1% on the fair market value of the property that exceeds CA$90,000 without exceeding CA$150,000, 1.5% on the fair market value of the property that exceeds CA$150,000 without exceeding CA$200,000, and 2% on the fair market value of property that exceeds CA$200,000.
In Nova Scotia, the land transfer tax, (“deed transfer tax”), payable on the sale price depends on the municipality in which the property is located. The applicable rate ranges from 0% to 1.5%, the latter being the maximum allowed by law.
In New Brunswick, the land transfer tax payable is 0.5% of the assessed value of the property, or consideration for the transfer, whichever is greater. The tax is payable at the time a deed is tendered for registration.
In Ontario, the general rate is 0.5% on the first CA$55,000 on the value of consideration of the property, and 1.0% on the value of consideration that exceeds CA$55,000 without exceeding CA$250,000. An additional tax of 0.5% (i.e. 1.5%) is payable on that portion of the value of consideration that exceeds CA$250,000. If the value of the consideration exceeds CA$400,000, and the land contains at least one and not more than two single family residences, an additional 0.5% tax (i.e. 2%) applies to the value of the consideration that exceeds CA$400,000. It should be noted that there are exceptions available for first time home buyers. The City of Toronto levies an additional land transfer tax, also subject to possible exemptions for first time home buyers.
In Prince Edward Island, the tax is computed at the rate of 1% of the greater of the consideration for the transfer and the assessed value of the real property. The tax is payable when the deed is tendered for registration. First time home buyers are exempt from payment of the real property transfer tax.
The tax in Quebec is computed on the highest consideration paid, the consideration agreed for, or the fair market value of the property. This tax is payable upon the registration of the transfer of the property.
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