Our Clover Mortgage Land Transfer Tax Calculator works for calculating Ontario's land transfer tax, Toronto's land transfer tax, British Columbia's land transfer tax, and the land transfer tax in Alberta.
Calculating the land transfer tax in Ontario is based on the property value and is calculated as follows:
The first $55,000 will have 0.5% land transfer tax, the next $195,000 (total purchase price of up to $250,000) will carry an additional 1% land transfer tax, the next $150,000 (total purchase price of up to $400,000) will have an additional 1.5% land transfer tax, anything above $400,000 up to $2,000,000 in purchase price has an additional 2% of land transfer tax, and anything above $2,500,000 carries an extra 2.5% land transfer tax. If you are purchasing a home in Toronto, there is an additional land transfer tax, and our calculator accounts for that also. Ontario does however offer a rebate to first-time home buyers of up to $4,000 and an additional up to $4,475 for first-time home buyers purchasing a property in Toronto, for a total land transfer tax rebate of up to $8,475 for a home purchase in Toronto.
The land transfer tax is calculated differently in British Columbia. First-time home buyers purchasing a property in British Columbia are able to receive a full rebate on the land transfer tax for homes purchased for $500,000 or less. When it comes to homes purchased for $500,000 to $525,000, a first-time home buyer will be able to receive a portion of the land transfer tax rebated to them.
When it comes to the province of Alberta, there is no land transfer tax. In Alberta, there are other fees such as a title registration fee and a mortgage registration fee. Those fees are calculated as follows:
The title registration fee starts at $50 and adds $2 for every $5,000 of the purchase price of the property. If there is a mortgage then there is an additional mortgage registration fee. The mortgage registration fee is calculated based on $50 plus $1 for every $5,000 of mortgage principal that is being registered on the property. There are no rebates being offered on these fees at the moment.
Land transfer tax, also known as LTT, is a tax charge that a homebuyer must pay to the province, and in some cases the city also. The LTT applies to situations when a transaction that involves purchasing a home is completed in most provinces in Canada. This tax is paid when land transfer occurs, and land is transferred from one owner to another. Using a land transfer calculator is the best way to predict how much land transfer tax you might need to pay.
It is important to note that the land transfer tax is not calculated on the mortgage amount for the purchase, but on the full purchase price of the home. The mortgage amount is irrelevant when calculating the LTT. You can speak with your mortgage broker to get more information about this and to help you calculate the LTT you will owe, or you can use the Clover Mortgage LTT calculator for Vancouver, Toronto, and other areas of Ontario and BC.
The only 2 provinces that currently do not impose a tax policy when a land transfer is completed are Albert and Saskatchewan. Although these provinces do not have a tax for land transfer specifically, they do however impose a smaller fee for transferring the ownership of land.
For the most part, most provinces like Ontario and British Columbia calculate the how much to charge for land transfer tax using a tiered percentage system based on a percentage of the property value or purchase price. In cities like Toronto, an additional municipal land transfer tax applies. In cities like Toronto, homebuyers have to pay an additional municipal land transfer tax that is paid to the city of Toronto for housing they purchase. This does not apply to housing in the suburbs surrounding Toronto such as Vaughan, Mississauga, Oshawa, Ajax, Markham, Richmond Hill, York Region, Thornhill, Maple, Woodbridge, Newmarket, Barrie, Pickering, and other non Toronto municipalities across Ontario. Vancouver however, even though it is a popular city and highly populated city, does not have its own municipal land transfer taxes in Vancouver.
In provinces such as British Columbia and Ontario, and cities like Toronto offer a program for buyers buying their first home that provides residential land transfer tax rebates for first-time homebuyers. In some instances, this first time homebuyer land transfer tax rebates can offset the entire property transfer tax amount or a large portion of it.
Yes, both condos and houses are subject to property transfer taxes, as are town homes and a variety of other property types.
This calculation can be cumbersome to do by hand when purchasing a property, and information surrounding this calculation can be confusing. This is why we offer an easy to use online land transfer calculator service to help provide you with an estimated amount that you might have to pay in land transfer tax when purchasing your new home property. The calculation formula is customized based on whether you need to calculate the value of the land transfer tax Ontario, the land transfer tax Toronto, or the land transfer tax Vancouver. Depending on which province and even city you purchase your property in can determine the formula for calculating the land and property transfer fees. Every provincial market and municipal market can set its own tax policies and dictate their own terms when it comes to land transfer tax.
For example, our Toronto land transfer calculator takes into account the extra charge for the municipal tax, where our land transfer calculator Ontario only has one provincial tax. Similarly, our land transfer calculator British Columbia factors in only the provincial land transfer tax amount in BC because Vancouver does not ad its own municipal land transfer taxes.
Please use the land transfer tax calculator provided on this page to help you calculate the amount of tax you will need to pay when transferring the ownership of land from the previous owner to you.
In 2021, the Ontario land transfer tax rates for this provincial fee are calculated differently when purchasing a property in Toronto as opposed to other parts of the province. This is because, as mentioned above, Toronto imposes its own municipal tax charge on the amount paid for the transfer of land in addition to the provincial tax imposed by the Ontario government.
The rate for both the provincial and municipal land transfer taxes are calculated using a percentage of the purchase price amount or home value and is tiered based on that amount.
There are many online transfer tax calculator tools designed to help you calculate the land transfer tax that you will need to pay when purchasing your home.
Your mortgage broker will also help you calculate any potential transfer taxes you might be required to pay as part of their regular mortgage brokering services.
Here is a chart outlining how land transfer tax is calculated in Ontario.
| Purchase Price Range | Purchase Price Range |
|---|---|
| Up to and including $55,000.00 value | 0.5% |
| $55,000.01 to $250,000.00 value | 1.0% |
| $250,000.01 to $400,000.00 value | 1.5% |
| $400,000.01 to $2,000,000.00 value | 2% |
| $2,000,000.01 value and above | 2.5% |
For example, if someone buys a home with a purchase price value of the amount of $2,500,000, you can see that homebuyer would pay 0.5% on the first $55,000.00 of the purchase price, 1.0% on the next $194,999.99 of purchase price, 1.5% on the next $149,999.99 of purchase price, 2.0% on the next $1,599,999.99, and 2.5% on the remaining $499,999.99 total purchase price value.
Total land transfer tax = 0.5% x $55,000.00 + 1.0% x $194,999.99 + 1.5% x $149,999.99 + 2.0% x $1,599,999.99 + 2.5% x $499,999.99
= $275 + $1,950 + $2,250 + $32,000 + $12,500
The total Land Transfer Tax Ontario = $48,975
The above formula is the same as an online calculator would use to help you determine the amount that will be owed in land transfer tax.
To help offset the costs for first-time homebuyers when it comes to costs associated with the land transfer, and make it a bit easier for them to get into their first home, Ontario offers an incentive to first-time homebuyers in the form of a tax rebate or tax refund. This Ontario land transfer refund will cover up to the full value of the land transfer tax up to $4,000. Which means that provided your land transfer tax in Ontario is $4,000 or less, you won’t have to pay anything if you are deemed to qualify as a first-time homebuyer. If your provincial Ontario land transfer tax comes out to more than $4,000, then you will only have to pay the additional amount above the $4,000 as the Ontario government will cover the first $4,000 amount.
Based on today’s calculations, this will cover the land transfer tax for up to the first $368,000 value of the purchase price. Anything above that, the buyer will have to cover and pay the additional land transfer tax for the remainder of the total purchase price.
To qualify for the first-time homebuyer credit, you will need to meet the following criteria:
- The buyer must be a Canadian citizen or permanent resident of Canada
- The purchaser must be 18 years of age or older
- The purchasing party must move in and live inside the home within the first 9 months of the closing date or purchase
- The homebuyer cannot have owned a home anywhere in the world
- The first-time homebuyer’s spouse cannot have owned a home while being their spouse
- The buyer must apply for this refund within 18 months after purchasing the home
Land transfer taxes in Toronto are municipal levies that the city of Toronto has in place as a tax that is paid to the city when ownership changes in the form of a transfer or sale/purchase of land or property in Toronto. It too is based on the purchase price and value of the property.
To understand how land transfer tax is calculated in Toronto, please refer to the information in the chart below:
| Purchase Price Range | Incremental Tax Percent |
|---|---|
| Up to and including $55,000.00 | 0.5% |
| $55,000.01 to $250,000.00 | 1.0% |
| $250,000.01 to $400,000.00 | 1.5% |
| $400,000.01 to $2,000,000.00 | 2% |
| $2,000,000.01 and above | 2.5% |
Essentially, yes, when calculated the land transfer a homebuyer pays when purchasing a property in Toronto is double to that anywhere else in Ontario. You will notice that the same formula and scale is used to calculate the additional Toronto land transfer tax, as a result buying in Toronto would double the land transfer tax a purchaser will have to pay if they were to purchase a home anywhere else in Ontario.
So for our example of a home worth $2,500,000, buying that same home in Toronto would add an additional $48,975 in municipal land transfer tax for a total of $97,950 paid on closing in land transfer tax.
The Toronto boundaries for this tax falls within the following range:
Northern border: Steeles Avenue
West border: Etobicoke
East border: Scarborough
South border: Lake Ontario
For the most part, no one is exempt from paying land transfer tax in Ontario whenever a land transfer takes place. However, transfers of land between affiliated corporations, or land transfers where there is no consideration given, along with very specific transfers of land and property between spouses may be exempt from paying land transfer tax. There are other exemptions such as disposition of land by an employee to employer, specific types of life lease structures and interests, charity reorganizations and more, but you would be advised to consult with your real estate lawyer and accountant to be certain of whether or not you would qualify for an exemption as they would have the most up to date information and reports on this topic about land transfer tax exemptions.
This question would best be answered by a qualified accountant, however for the most part, as a general rule, the value amount paid towards the Ontario land transfer tax does not tend to be deductible. Again, depending on how you structure the ownership and the purchase and sale, there may be instances where your accountant might eb able to properly deduct some or all of the land transfer tax, although it is not common practice. As a mortgage brokerage we cannot advise you on tax practices.
First-time homebuyers purchasing a home in Toronto are eligible to receive a municipal land transfer tax rebates of up to $4,475. This is in addition to the land transfer tax rebates offered by the Ontario government. This means that if you are purchasing a home in Toronto as a first-time homebuyer, you can get up to a total of $8,475 in rebate towards your tax for land transfer, and anything above that you will be responsible for paying.
The eligibility requirements to be considered a first-time homebuyer for the purpose of obtaining the Toronto land transfer tax refund are as follows:
- The buyer must be a Canadian citizen or permanent resident of Canada
- The purchaser must be 18 years of age or older
- The purchasing party must move in and live inside the home within the first 9 months of the closing date or purchase and may not apply the rebate if they move in after 9 months
- The homebuyer cannot have owned a home anywhere in the world
- The first-time homebuyer’s spouse cannot have owned a home while being their spouse
The land transfer taxes in British Columbia are also calculated using a tiered property value percentage-based system and resembles the way land transfer tax is calculated in Toronto and Ontario. What you will find with BC and Vancouver is that high value residential homes are taxed at a significantly higher marginal tax rate than those in Ontario and Toronto.
Take a look at the table below to see how land transfer tax is calculated in British Columbia:
| Purchase Price Range | Incremental Tax Percent |
|---|---|
| Up to and including $200,000 | 1.0% |
| $200,001 to $2,000,000.00 | 2.0% |
| Over $2,000,000 | 3.0% |
| Over $3,000,000 | An additional 2% (including 3% + 2% = 5% Total) |
Let’s use the same $2,500,000 example and compare the calculation of the land transfer tax between Ontario and British Columbia.
Land transfer tax = 1% x $200,000 + 2% x $1,799,999 + 3% x $500,000
= $53,000
As you can see, the land transfer tax rate in BC can be higher than that of Ontario. When we get into luxury homes above $3,000,000 it increases even more drastically.
When it comes to avoiding land transfer tax in BC, there are a number of exemptions that they offer. This includes the first-time homebuyers refund for homes under $500,000, but also includes certain exemptions for newly built homes.
When it comes to newly built homes, here are the basic guidelines for eligibility for a land transfer tax exemption:
- The buyer must be an individual
- You must be a Canadian citizen or permanent resident
and the property must fall under the following criteria:
A homebuyer might be able qualify for a partial exemption, if the following is true:
Other exemptions exist, and you can read more about them by visiting the BC government website at: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions
The province of British Columbia exempts certain newly constructed properties form having to pay land transfer tax. Please review the exemption eligibility details and content above and in the link provided above.
Vancouver, unlike Toronto, does not have its own additional municipal land transfer tax as of 2021. This may change in the future, but for the time being that is not the case. When you purchase a home in Vancouver, you would only need to pay the provincial land transfer tax for BC.
Yes, even first-time homebuyers have to pay land transfer tax in BC, unless they qualify for a full or partial land transfer tax rebate.
In BC, first-time homebuyers are able to get the full land transfer tax refunded back to them for any home with a purchase price of up to $500,000. For a home purchase between $500,000 and $525,000, the buyer, provided that they are a first-time homebuyer will be eligible for a partial refund in British Columbia.
Give that limit, many homes in the Vancouver area would not qualify for a full or partial land transfer tax rebate since the average selling price of homes in Vancouver is above $1,000,000 as of 2021.
To be eligible for the first-time homebuyers land transfer tax rebate in British Columbia, the homebuyer would need to meet the following eligibility and qualification criteria:
You can find more information about the eligibility requirements for the first-time homebuyers refund in BC on the government’s website.
No, you cannot include the land transfer tax in your mortgage, as it needs to be paid immediately upon closing of the sale regardless of the mortgage. However, if you have room in the loan to value and can qualify for a higher mortgage amount, you might be able to allocate a portion of your down payment savings towards paying the land transfer tax and take out a larger mortgage to cover the difference. This would only work if there is enough equity available in the home and if you would qualify with your lender for a higher mortgage amount. Speak with your mortgage agent to help you make the necessary calculations.
Non homebuyers who already own their home or commercial real estate asset do not have to pay Land Transfer Tax when they refinance their mortgages or refinance their properties. The land transfer tax only applies to homebuyers and not existing homeowners.
Yes, regardless if you are a resident, citizen, or non resident and non citizen of Canada, you are still required to abide by the land transfer tax policies when purchasing a home or piece of real estate in Canada.
When you contact a mortgage broker, your privacy is of the utmost importance and is protected in accordance to the privacy policies set forth by FSRA, PIPIDA, and other governing bodies. Part of the process that mortgage brokerages take when providing their services to their clients is to ensure that all privacy laws and regulations are followed.
Upon closing, part of your real estate purchase closing costs will go towards making an immediate payment on the land transfer taxes you owe.
No, the government does not offer payment over the course of terms. Instead the full amount is due upon closing.
Yes, you can always contact a mortgage broker to help you determine how much land transfer tax you may be required to pay upon closing. You can also contact your real estate agent or use the Clover Mortgage land transfer calculator for Toronto, Vancouver, and other parts of Ontario and British Columbia.
Similar to Vancouver and BC, mortgage lenders are not able to factor in land transfer tax into the mortgage. Having said that, if you have enough of a down payment for the mortgage, and can afford and qualify for the additional mortgage amount, you might be able to increase your overall mortgage principal in order to have enough extra cash upon closing to pay for the land transfer tax.
Also, if you have any other pieces of real estate that you own, you can always refinance the property or existing mortgage, or get a second mortgage on that property to cover the amount of transfer tax you will need to pay on the new property. It is important to note, that when getting a mortgage from an institutional lender, you might need to ensure that any additional mortgage refinance or second mortgages placed on your existing property will not reduce your qualification ability for the new mortgage. This is important to determine prior to taking out any additional mortgage funds before closing on the newly purchase property.
