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How to Calculate Land Transfer Tax

This is charged whenever a property changes hands and is based on the purchase price. Most provinces in Canada charge a provincial land transfer tax and some cities also charge an additional municipal land transfer tax. In some cases, first time home buyers maybe exempt from a portion of this cost. You can obtain further details about land transfer tax on provincial or municipal websites to help you estimate the cost.
The tax rate has not changed since June 1st, 1989.

  • ¬†0.5% of the¬†value of the consideration up to and including $55,000
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000 and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences

** obtained from Revenue Canada's website**