Buyers in most areas will have to add Land Transfer Taxes to their closing costs.

 

Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes are a part of the process. These taxes levied on properties that are changing hands are the buyer's responsibility. Depending on where you live, taxes can range from half a percent to two percent of the total value of the property.

 

Many provinces have multi-tiered taxation systems that can sometimes be difficult to understand. If you buy a property for $260,000 in Ontario, for example, .5 percent is charged on the first $55,000, 1 percent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.

 

The following illustrates Land Transfer Taxes in certain provinces:

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Ontario

Up to $55,000 X .5 % of total property value

 

From $55,000 to $250,000 X 1 % of total property value

 

From $250,000 to $400,000 X 1.5 % of total property value

 

From $400,000 up X 2 % of total property value

 

 

British Columbia

Up to $200,000 X 1 % of total property value

 

From $200,000 up X 2 % of total property value

 

 

Manitoba

Up to $30,000 N/A

 

From $30,000 to $90,000 X .5 % of total property value

 

From $90,000 to $150,000 X 1 % of total property value

 

From $150,000 up X 1.5 % of total property value

 

 

Quebec

Up to $50,000 X .5 % of total property value

 

From $50,000 to $250,000 X 1 % of total property value

 

From $250,000 up X 1.5 % of total property value

 

 

Nova Scotia

Halifax Metro

 

1.5 percent on total property value

 

Outside Halifax County, check with the local municipality.