Provincial Land Transfer Tax
A transfer tax is payable in most provinces on any acquisition of real property. There is no such tax in Alberta. In British Columbia, the general rate is 1% on the first $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 $30,000 on the fair market value of the property, 0.5% on the fair market value of the property that exceeds $30,000 without exceeding $90,000, 1% on the fair market value of the property that exceeds $90,000 without exceeding $150,000, 1.5% on the fair market value of the property that exceeds $150,000 without exceeding $200,000, and 2% on the fair market value of property that exceeds $200,000.
In Ontario, the general rate is 0.5% on the first $55,000 on the value of consideration of the property, and 1.0% on the value of consideration that exceeds $55,000 without exceeding $250,000. An additional tax of 0.5% (i.e. 1.5%) is payable on that portion of the value of consideration that exceeds $250,000. If the value of the consideration exceeds $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 $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 Quebec, the rate is 0.5% on the first $50,000, 1% on the amount exceeding $50,000 without exceeding $250,000 and 1.5% on the excess. 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.
In Nova Scotia, the land transfer tax (called a “deed transfer tax”) payable depends on the municipality in which the property is located.
In New Brunswick, the land transfer tax payable is 0.25% 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.
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