New Alberta Land Transfer Tax (Yes, it is a Tax)
As you may already know, Alberta’s government has recently introduced a new tax on home buyers, making it one of the last provinces in Canada to implement such a measure.
The lack of public response has been surprising, and we believe this stems from uncertainty about what this cost truly represents. Many have characterized it as an increase in registration ‘costs’ or ‘fees,’ akin to the minor frustration you might feel when facing a hike in vehicle registration fees at a local registry office. However, we believe this presentation is both incorrect and misleading. Make no mistake — this is a new tax in Alberta when purchasing real estate.
Due to this change, we no longer feel it’s accurate to label this as merely a registration fee. For full transparency, we’ll now refer to it as the “Land Transfer Tax (LTT)” in all our communications.
If you’re considering making a home purchase in Alberta, it’s important to know that, as of October 20, 2024, the LTT will apply to anyone buying property.
What Does This Mean for You?
Let’s say you’re buying a home worth $500,000 with a mortgage of $400,000. Previously, the Alberta Land Titles office would have collected $420. With the new tax, this cost will now be $1,000—more than double the previous amount.
How Does This Affect Value Law’s Pricing?
At Value Law, we’re committed to providing upfront pricing with no hidden fees. While the LTT will increase expenses for home buyers, our law firm continues to offer our lowest price guarantee. Here’s how our updated price breakdown will look when you purchase your home:
- $1,199 legal fees
- + $0 disbursements
- + GST
- + LTT
How to Calculate the Land Transfer Tax
To make things easy, you can use our Land Transfer Tax Calculator to find out exactly how much the LTT will be, based on the purchase price value of your property and mortgage amount.
Let Value Law Help You!
If you’re buying or selling a home in Alberta, our friendly and knowledgeable lawyers at Value Law are here to make the process simple and stress-free. Contact us today to get started, and we’ll help you handle everything, including the new land transfer tax.