Land Transfer Taxes (LTT) are provincial taxes levied on the exchange of real estate, and are the responsibility of the purchaser. Usually the LTT is a percentage of the property value. All provinces have a land transfer tax except Alberta and Saskatchewan (who instead levy a much smaller fee). Note that Ontario, Toronto, B.C. and PEI there are LTT rebates for first time homeowners. Also, keep in mind that Toronto is an exception as it charges an additional municipal tax (see Toronto section for additional information).
Prince Edward Island
In Prince Edward Island there is no Land Transfer Tax in cases where the property value is less than $30 000. The current rate on any portion over $30 000 is 1%.
First-time homebuyers in PEI may be exempt from the LTT under the following circumstances:
- Property value and purchase prices are below $200 000
- Individuals are occupying the home as a primary residence
Also, if there is more than one purchaser, both purchasers must qualify as a first time homebuyer.
For someone who is not a first time homebuyer, assuming a purchase of a home with a property value of $300,000, the land transfer tax would be $2,700 (1% of $270,000).