Property Transfer Tax

Property Transfer Tax is a registration tax that is paid whenever an interest in real property is acquired.

Property transfer tax is payable on the fair market value of the real estate being transferred. Fair market value is interpreted as the price that a willing purchaser would pay to a willing seller in the open market. In most circumstances, the actual price is the best indicator of the fair market value. This tax is applied to the fair market value of land and any improvements situated on the land.

The current property transfer tax rate is set at 1% where the fair market value is less than $200,000 and 2% for the balance of the fair market value above $200,000.

Property transfer taxes are a tax on changes to the registration of a property and can be triggered as follows:

• Transfer of legal title when purchasing real estate
• Registering a right to purchase or an agreement for sale
• Leases and lease modification agreements
• Life estates
• Foreclosures
• Property transfers due to corporate reorganizations
• Estates, forfeitures, quit claims
• Crown grants

All taxable transactions are taxable at fair market value whether or not money was exchanged.

A property taxpayer must file a Notice of Objection, by mail, within 90 days of receiving a Notice of Assessment from the Ministry staff if they wish to dispute the Ministry’s determination of fair market value.