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).

Quebec

In Quebec, land transfer taxes are also known as “welcome taxes” (“taxes de bienvenue”).

The current land transfer tax rates are:

  • 0.5% on the first $50 000
  • 1% on $50,001 – $250 000
  • 1.5% of portion over $250 000

Example:

Meagan buys a property for $300 000. The land transfer taxes will be $300 000.

  • .005 x $50 000 = $250
  • .01 x $200 000 = $2 000
  • .015 x $50 000 = $750
  • $50 000 + $200 000 + 50 000 = $300 000
  • $250 + $2 000 + $750 = $3 000