Land Transfer Tax (LTT)
Quick Definition
A provincial tax paid when purchasing real property, calculated as a percentage of purchase price.
Full Explanation
Land Transfer Tax (LTT) is a provincial tax paid to the provincial government when you purchase real estate in Canada. Most provinces charge LTT; Alberta and Saskatchewan use a lower-cost transfer fee instead. Ontario's LTT ranges from 0.5% to 2.5% of the purchase price (with an additional Toronto Municipal Land Transfer Tax for properties in Toronto). BC has Property Transfer Tax at similar rates. First-time buyers receive rebates in Ontario (up to $4,000), BC (up to $8,000), and in some municipalities. LTT is a significant closing cost that must be factored into home purchase budgeting.
Related Terms
First-Time Home Buyer
A buyer who has not owned a home in the last 4 years, qualifying for special programs.
Closing Costs
Fees and expenses paid at the completion of a real estate transaction, typically 1.5–4% of purchase price.
Down Payment
The upfront cash you pay toward a home purchase, expressed as a percentage of purchase price.
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