Land Transfer Tax: Alberta vs Ontario

There’s a lot to consider when you’re looking to buy a home. Location, style, the neighborhood, and of course your budget are all key factors in deciding where you’ll live. But there’s one thing that can make or break your chances of getting into the home of your dreams: taxes. Each province has its own system of real estate transfer taxes, also known as land transfer tax (LTT). The amount of LTT you pay depends on the price of the property you’re buying.

While Alberta has no land transfer tax, Ontario does. That being said, here’s everything you need to know about each province’s unique approach to real estate taxes. Read on to learn more about why land transfer taxes are a hot topic for both buyers and sellers in Ontario and Alberta!

Ontario 

Who pays land transfer tax? 

When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes. 

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land. 

In some cases, land transfer tax is based on the fair market value of the land, such as in the following examples: 

• the transfer of a lease with a remaining term that can exceed 50 years 
• the transfer of land from a corporation to one of its shareholders, or 
• the transfer of land to a corporation, if shares of the corporation are issued. 

First‑time homebuyers 

If you are a first‑time home buyer, you may be eligible for a refund of all or part of the land transfer tax. 

Paying the tax

Ontario’s land transfer tax is payable when the transfer is registered. 

If the transfer is not registered within 30 days of closing, you must submit a Return on the Acquisition of a Beneficial Interest in Land form to the Ministry of Finance, along with the payment of tax within 30 days after the closing date. 

Some person(s) do not pay land transfer tax on certain transfers of land. The exemptions include, but are not limited to: 

• certain transfers between spouses 
• certain transfers from an individual to his or her family business corporation 
• certain transfers of farmed land between family members 
• certain transfers of a life lease from a non‑profit organization or a charity. 

A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered on title. 

Land transfer tax rates in Ontario

The Ontario land transfer tax (LTT) is a marginal tax, and each portion of your home’s value is taxed at a unique rate. These tax rates are as follows: 

• 

Alberta

In Alberta, we do not have a land transfer tax. However, you will be charged a property registration fee. The property registration fee has two components: Property Value Component: $50, plus $1 for every $5,000 of purchase price (rounded up).

So why does this matter? Well, for one thing it means that you can save some serious money on your purchase by choosing Alberta over Ontario for your real estate needs. But there’s more to it than just saving money: it also means that we’re much more welcoming to newcomers than other areas of Canada are. We want people who want to come here and build their lives here—and we think it shows in the way we treat our new residents.

To find out more about why we’re such a great place for newcomers, check out our website or give us a call!