Question Box: How much is the Land Transfer Tax in Alberta?

When buying a home in a major Canadian city, you will often have to pay a tax called the Land Transfer Tax or sometimes referred to as Property Purchase Tax. The tax is usually calculated as a percentage of the purchase price and the formula varies from province to province.

Since I get this question asked often:

Alberta DOES NOT have a Land Transfer Tax
(that was easy!)

While Alberta does not levy a land transfer tax, there are nominal registration fees. The land transfer registration fees and mortgage registration fees are based on the purchase price and mortgage amount being registered.

According to the Tariff of Fees Regulation, Alta. Reg. 120/2000, the registration fee is $50, plus $1 for every $5,000 of the property value; if there is a mortgage, another $50, plus $1 for every $5,000 of the mortgage amount, is due.

Example

Let’s say you’ve purchased a $400,000 home that has a $300,000 mortgage.   Here’s how it would be calculated:

Land Title Transfer
$50+($400,000/$5000)= $130

Mortgage Registration on Title
$50+($300,000/$5000)= $110

Total: $240

The cost is nominal and nowhere near how much buyers have to pay in other provinces such as Ontario or B.C.

3 responses to “Question Box: How much is the Land Transfer Tax in Alberta?

  1. Things might be changing – a new Property Purchase Tax in the works?

    February 3, 2009 – Calgary Herald

    February 5, 2009 – Calgary Sun

  2. Pingback: Weekend Real Estate News Roundup | Calgary Real Estate Review

  3. Stella McKone

    Property Transfer Tax is so hard on seniors trying to downsize, they should consider income of the buyers – what a tax grab in British Columbia (Gordon Campbell again?)

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