Which province or territory are you purchasing a home?
If you want to quickly determine how much land transfer cost is associated with a home purchase, you can use this land transfer tax (LTT) calculator. Land transfer taxes are one component of determining a homes affordability. We recommend using a mortgage affordability calculator to determine how much house you can afford.
What is land transfer tax?
Land transfer tax (LTT) is frequently underestimated when calculating the overall expenses of buying a home, yet it can significantly impact closing costs. Across most provinces, LTT is calculated as a percentage of the property value, with the asking price serving as a close estimate. Some provinces also have municipalities that charge land transfer tax. For example Ontario's Toronto, home buyers also face an additional municipal tax. In many provinces such as Ontario LTT is a marginal tax which is taxed at each portion of your house's value.
Who pays the land transfer tax?
The land transfer tax is paid by the purchaser at the time of closing on the purchase. Land transfer tax needs to be paid when the buyer takes possession of the property. The full amount of the land transfer tax is to be paid as a one-time payment.
What is land transfer tax?
Land transfer tax is a tax levied on the purchase of land. It can be charged at both a provincial and municipal level.
How do I avoid paying land transfer tax?
If you are a first-time homebuyer you can lower the amount of land transfer tax through taking advantage of the first-time homebuyer rebate.
How can I claim the land transfer tax rebate?
If you are a first-time homebuyer you may be eligible for the first-time homebuyer rebate at both a provincial and municipal level.