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Buying a Home: Land Transfer Tax

Generally, when a buyer purchases real estate in Manitoba they will incur land transfer tax.

Land transfer tax is calculated based on the fair market value of the property (usually the purchase price). The percentage used by the provincial government to calculate land transfer tax differs based on the value of the home (see table below).

Value of Property Rate
On the first $30,000 0%
On the next $60,000 ($30,001 to $90,000) 0.5%
On the next $60,000 ($90,001 to $150,000) 1.0%
On the next $50,000 ($150,001 to $200,000) 1.5%
On amounts in excess of $200,000 2.0%

For example, a buyer purchasing a home valued at $100,000 pays $400 in land transfer tax, a purchaser of a home valued at $200,000 would pay $1,650, and a buyer of a home over $200,000 in value would pay $1,650 plus 2% of any amount over $200,000. A $104 transfer fee is also required to complete the transfer.

EXCEPTIONS

In certain situations, land transfer tax may not be payable as a result of a purchase or transfer of real property, including:

  • The value of the land transferred is less than $30,000
  • The transferor is the director of The Veteran Lands Act and the transferee is a veteran or the spouse of a veteran or the common-law partner of a veteran
  • The land is farmland, the transferee is a farmer, a spouse or common-law partner of a farmer, or a farmer and the farmer’s spouse or common-law partner, and the land will continue to be used for farming
  • The land is farmland, the transferee is a family farm corporation and the land will continue to be used for farming
  • The land is farmland, the transferee is congregation within the meaning of section 143 of The Income Tax Act (Canada) and the land will continue to be used for farming
  • The transferee is a registered charity as defined in The Income Tax Act of Canada
  • The transfer is filed to correct an error in a previous transfer
  • The transfer is to facilitate a scheme of subdivision to or from a trustee where there is no change of beneficial ownership
  • The transfer is to change the type of tenure as between the existing owners of the land in question
  • The transfer is a transfer of non-commercial property and the transferee is the registered owner’s spouse or common-law partner (within the meaning of section 114 (1) (e) of The Tax Administration and Miscellaneous Taxes Act) or former spouse or former common-law partner or the executors/administrators of the registered owner’s spouse or common-law partner
  • The transfer is from a company which has dissolved and is to the company which held all of its shares immediately prior to dissolution
  • The transferee is acquiring the land for the use and benefit of an Indian band for treaty land entitlement purposes pursuant to s. 113(3) of The Tax Administration and Miscellaneous Taxes Act.
  • The transferee is a non-profit corporation that is controlled by the transferor which is a registered charity as defined in s. 248(1) of the Income Tax Act.

Depending on your particular circumstances, the actual land transfer tax may vary. However, to receive an estimate on the amount of land transfer tax you may incur, click on the calculator below:

Land Transfer Tax Calculator

At SNJ we will calculate the Land Transfer Tax you are required to pay and notify you of the amount as part of your real estate transaction.

Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.

 
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