#1Sep 3rd, 2009
I am wondering, does any province not have a property transfer tax?
If so, which one(s)?
2299 others browsing the Canadian Forums! Join us!Provinces Without Property Transfer Tax?
I am wondering, does any province not have a property transfer tax?
If so, which one(s)?
#2
Re: Provinces Without Property Transfer Tax?
Sep 3rd, 2009
I googled your question and this is what I got:
Property Transfer (or Purchase) Tax / Land Transfer Fees are calculated between 0.5-2% of the property's total value (not applicable in Alberta, rural Nova Scotia or Saskatchewan). They are generally 1% of the first $200,000 of the value and 2% of the remainder.
Since the 2005 Provincial Budget, Property Transfer Tax (PTT) is now exempt for individuals buying their first home as long as they meet certain criteria, namely that they are a Canadian citizen or Permanent Resident and have never owned a home anywhere in the world; that they have lived in the province for at least one year prior to purchase; that they have filed two Canadian tax returns within the last six years; and that they must occupy the property as their principal residence for the first year of ownership. There are also proportional exemptions to PTT for first-time home buyers which vary by region based on the fair market value of the property.
As of December 2007, the Ontario Provincial Land Transfer Tax exemption for first time buyers (up to $2,000) now applies to resale as well as newly constructed homes. Similarly, from February 2008, Toronto (and this may spread to other provincial cities) has its own Land Transfer Tax which allows first time home buyers of both new and resale homes to qualify for a rebate.
If the property is vacant land, the house must be constructed within one year of closing and the buyer must live in the house for the balance of the year.
Property Transfer (or Purchase) Tax / Land Transfer Fees are calculated between 0.5-2% of the property's total value (not applicable in Alberta, rural Nova Scotia or Saskatchewan). They are generally 1% of the first $200,000 of the value and 2% of the remainder.
Since the 2005 Provincial Budget, Property Transfer Tax (PTT) is now exempt for individuals buying their first home as long as they meet certain criteria, namely that they are a Canadian citizen or Permanent Resident and have never owned a home anywhere in the world; that they have lived in the province for at least one year prior to purchase; that they have filed two Canadian tax returns within the last six years; and that they must occupy the property as their principal residence for the first year of ownership. There are also proportional exemptions to PTT for first-time home buyers which vary by region based on the fair market value of the property.
As of December 2007, the Ontario Provincial Land Transfer Tax exemption for first time buyers (up to $2,000) now applies to resale as well as newly constructed homes. Similarly, from February 2008, Toronto (and this may spread to other provincial cities) has its own Land Transfer Tax which allows first time home buyers of both new and resale homes to qualify for a rebate.
If the property is vacant land, the house must be constructed within one year of closing and the buyer must live in the house for the balance of the year.
#3
Re: Provinces Without Property Transfer Tax?
Sep 3rd, 2009
Last time I bought in Sask or Alberta they not only didn't have them, real estate agents looked at me sideways when asked if they did. NS doesn't have one either, but the the HRM (Halifax Regional Municipality) does, other municipalities may as well. I've heard Quebec even calls it the "Welcome to Quebec" tax, no wonder I have no use for some forms of government.
#4
Re: Provinces Without Property Transfer Tax?
Sep 4th, 2009Quote: Originally Posted by bobnoorduyn
Hi Bob - How ya doing! People in BC are getting super upset (almost all of us I think) over the proposed and likely soon to be a reality, HST (harmonized sales tax) because the word is that housing costs will rise dramatically. We have been paying at least 1% sales tax on home purchases for years now. It was that on the first $100,000.00 and then it moved to around 2.5% after that on the balance. I think it changed again because to the best of my knowledge, we only paid a straight 1% on our house 4 years ago. If they do change the amount to the same level as our regular PST (7%)it will be a disaster. This is not supposed to kick in before July of next year so anyone planning on getting around it better make their move before June to be sure. People seem to have a multitude of ideas as to why we are getting the HST but in the end, I think it comes down to major over-spending on the Olympics. BC needs new government but there are no choices. I think it's time to appoint people to these positions and when they abuse them (which is what I feel is happening), we can fire them (which is what I would like to see happen).Last time I bought in Sask or Alberta they not only didn't have them, real estate agents looked at me sideways when asked if they did. NS doesn't have one either, but the the HRM (Halifax Regional Municipality) does, other municipalities may as well. I've heard Quebec even calls it the "Welcome to Quebec" tax, no wonder I have no use for some forms of government.
#5
Re: Provinces Without Property Transfer Tax?
Sep 4th, 2009Quote: Originally Posted by VanIsle
Under HST, if it's the same as the existing system, you'd pay HST on new housing, but not on existing houses. There is also an HST rebate on new housing that gives you back some of the tax. Stil, it adds up.Hi Bob - How ya doing! People in BC are getting super upset (almost all of us I think) over the proposed and likely soon to be a reality, HST (harmonized sales tax) because the word is that housing costs will rise dramatically. We have been paying at least 1% sales tax on home purchases for years now. It was that on the first $100,000.00 and then it moved to around 2.5% after that on the balance. I think it changed again because to the best of my knowledge, we only paid a straight 1% on our house 4 years ago. If they do change the amount to the same level as our regular PST (7%)it will be a disaster. This is not supposed to kick in before July of next year so anyone planning on getting around it better make their move before June to be sure. People seem to have a multitude of ideas as to why we are getting the HST but in the end, I think it comes down to major over-spending on the Olympics. BC needs new government but there are no choices. I think it's time to appoint people to these positions and when they abuse them (which is what I feel is happening), we can fire them (which is what I would like to see happen).
#6
Re: Provinces Without Property Transfer Tax?
Sep 4th, 2009Quote: Originally Posted by TenPenny
There is only a rebate on housing costing over $400,000 and there is a cap on the rebate (I forget the amt. - I think it's $36,000 but I'm not sure.) I don't know about where you live but, in BC, we have paid PST for quite a few years now on new and existing houses. We don't pay GST on existing houses but that would be the same for everyone countrywide.Under HST, if it's the same as the existing system, you'd pay HST on new housing, but not on existing houses. There is also an HST rebate on new housing that gives you back some of the tax. Stil, it adds up.
It is my understanding that we have until July 2010 to get our ducks in a row if we want to avoid this excessive tax on housing.
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