Calculating the land transfer tax in Ontario is based on the property value and is calculated as follows:
The first $55,000 will have 0.5% land transfer tax, the next $195,000 (total purchase price of up to $250,000) will carry an additional 1% land transfer tax, the next $150,000 (total purchase price of up to $400,000) will have an additional 1.5% land transfer tax, anything above $400,000 up to $2,000,000 in purchase price has an additional 2% of land transfer tax, and anything above $2,500,000 carries an extra 2.5% land transfer tax. If you are purchasing a home in Toronto, there is an additional land transfer tax, and our calculator accounts for that also. Ontario does however offer a rebate to first-time home buyers of up to $4,000 and an additional up to $4,475 for first-time home buyers purchasing a property in Toronto, for a total land transfer tax rebate of up to $8,475 for a home purchase in Toronto.
The land transfer tax is calculated differently in British Columbia. First-time home buyers purchasing a property in British Columbia are able to receive a full rebate on the land transfer tax for homes purchased for $500,000 or less. When it comes to homes purchased for $500,000 to $525,000, a first-time home buyer will be able to receive a portion of the land transfer tax rebated to them.
When it comes to the province of Alberta, there is no land transfer tax. In Alberta, there are other fees such as a title registration fee and a mortgage registration fee. Those fees are calculated as follows:
The title registration fee starts at $50 and adds $2 for every $5,000 of the purchase price of the property. If there is a mortgage then there is an additional mortgage registration fee. The mortgage registration fee is calculated based on $50 plus $1 for every $5,000 of mortgage principal that is being registered on the property. There are no rebates being offered on these fees at the moment.