Real Estate Term
Land Transfer Tax
A tax paid to the provincial or municipal government when property ownership changes hands.
What is Land Transfer Tax?
Land transfer tax is a tax you pay to the provincial — and in some cities, municipal — government when property ownership changes hands. It is calculated on the purchase price using a tiered rate and is usually one of the largest closing costs a buyer faces. Many provinces offer a rebate that reduces or eliminates the tax for first-time buyers.
Frequently asked questions
Related terms
Closing CostsFees and expenses paid at closing, including legal fees, land transfer tax, and other charges.ClosingThe final step in a real estate transaction where ownership transfers from seller to buyer.DeedA legal document that transfers ownership of real property from one party to another.LeaseholdA form of property ownership where you own the building but lease the land it sits on.LienA legal claim against a property, often used as security for a debt.ListingA property that is available for sale, marketed through a real estate brokerage.Listing AgentThe real estate agent who represents the seller in a property transaction.
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