What is Land Transfer Tax?

Land Transfer Tax is a provincial tax that is paid when a person acquires any property (land, buildings, structures and structures to be constructed).  This includes new home purchases (including upgrades) as well as resale homes. Land Transfer Tax is based on the amount paid for the property.  This tax will be paid when the transaction closes.

CLICK HERE FOR A LAND TRANSFER TAX CALCULATOR

First time homebuyers

If you are a first time homebuyer, you may be eligible for a refund of all or part of the Land Transfer Tax. To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, while he or she was your spouse. Previous ownership in a home means you do not qualify for the Land Transfer Tax First-Time Homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.

Beginning January 1, 2017, the maximum amount of the refund was increased to $4,000. No land transfer tax would be payable by qualifying first time purchasers on the first $368,000 of the value of the consideration for eligible homes. First time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

Requirements to qualify for the refund:

To qualify for a refund:

  • The purchaser must be at least 18 years old, and be a Canadian citizen or permanent resident of Canada.
  • The purchaser must occupy the home as their principal residence within nine months of the date of transfer.
  • The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
  • If the purchaser has a spouse, the spouse cannot have owned an eligible home, or had any ownership interest in an eligible home, anywhere in the world, while he or she was the purchaser’s spouse. If this is the case, no refund is available to either spouse.
  • A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance, or the date the unregistered disposition occurs.