- Why Sally?
- About The Resort
PROPERTY TRANSFER TAX AND FIRST TIME HOME BUYER'S INFORMATION
Use our Property Transfer Tax Calculator. Click here
The Property Transfer Tax is a tax payable to the Provincial Government by purchasers of real estate. The tax applies to all types of real estate, whether residential, commercial or industrial.
The amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property's fair market value*, 2% on the amount between $200,000 and $2M, and 3% on the amount over $2M.
For example, if the fair market value of the property is $200,000.00, the tax payable would be $2,000.00 (1% of $200,000.00).
If the fair market value of the property is $3M, the tax payable would be:
$2000 (1% on the first $200,000) plus $36,000 (2% on the amount between $200,000 and $2M), plus $30,000 (3% on the amount over $2M) for a total of $68,000.
“Fair Market Value" is best described as the price that would be paid for a property on the open market (which is usually the actual purchase price paid for the property). If the transfer of property is taking place without the exchange of money, the fair market value must be the fair value of the property if same was sold on the open market. In some situations, the fair market value is determined by the recent Assessment received from the Assessment Office.
First Time Home Buyers Exemption
There are a number of exemptions available to purchasers so that the property transfer tax is not payable. The most common is the exemption for "First Time Home Buyers”. To qualify for an exemption to the Property Purchase Tax as a First Time Home Buyer, the following criteria must be met:
Pro rata exemption where property exceeds .5 hectares or a portion of the property is not residential (i.e. commercial lofts) - purchase price of entire property must not exceed the price limitations.
Click here for further details on the First Time Home Buyers Program
Other exemptions exist as well, such as a transfer of a principal residence between family members. For details on this and other exemptions, go to Property Transfer Tax Exemptions
Property Transfer Tax should not be confused with Property Tax. The Property Transfer Tax is a one time tax paid to the Provincial Government by purchasers of real estate. The Property Tax is the tax paid on an annual basis to the local City/Municipality.
Please remember that the Property Transfer Tax Act may frequently change along with the exemptions for payment of this Tax. While we try to keep our website up to date as much as possible, please do not rely upon the information without talking to one of our lawyers.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice regarding your own situation.