Plain meaning
A tax or duty that may apply when real estate changes ownership, depending on the province, territory, or municipality.
Also called
real estate transfer tax
property transfer tax
Key points
- Land transfer tax is not uniform across Canada; rules vary by province, territory, and in some cases municipality.
- The tax is usually calculated on the purchase price or value of the real property transferred.
- First-time home buyer rebates or exemptions may be available in some jurisdictions.
- Commercial, residential, non-resident, and related-party transfers can have different rules or additional taxes.
- Because it is paid at closing, land transfer tax can materially affect the cash needed to buy a home.
Why it comes up
Land transfer taxes affect closing costs, housing affordability, first-time buyer rebates, and real estate policy.