Land Transfer Tax

One of those sneaky closing costs many buyers forget to account for. A land transfer tax is a form of tax paid to the government on the closing of a property purchase. This tax is paid by the purchaser of a property and is calculated based on the property's purchase price. Land transfer taxes are typically a Provincial charge and can vary by Province, but some municipalities also charge a land transfer tax. First-time home buyers are sometimes exempt from part of the cost.