What is land transfer tax, and how is it calculated?

By operation of The Tax Administration and Miscellaneous Taxes Act a tax called land transfer tax is assessed whenever a transfer of land or of an interest in land is registered at land titles. Land transfer tax is collected by the land titles offices on behalf of the Province of Manitoba. This tax is a sliding scale tax, increasing in amount as the land transferred increases in value. The land transfer tax calculation is based on the fair market value of the land transferred. Please note the fair market value is to be the value of the land at the time the transfer is tendered for registration at land titles, and not the value of the land at the time the agreement for sale was entered into.

This tax is calculated as follows:

Part of value $ 0.00 to $ 30,000.00	no tax	on that amount;
Part of value $ 30,001.00 to $ 90,000.00	tax = ½ %	on that amount;
Part of value $ 90,001.00 to $ 150,000.00	tax = 1 %	on that amount;
Part of value $ 150,001.00 to $ 200,000.00	tax = 1 ½ %	on that amount; and
Part of value $ 200,001.00 and above	tax = 2 %	on that amount.

An online fee calculator can be found on our website: https://teranetmanitoba.ca/land-titles/land-titles-fees/ 

 

The Tax Administration and Miscellaneous Taxes Act requires land transfer tax be paid on all transfers of land unless there is some specific exemption available. Land transfer tax may not be payable if:

• The value of the land transferred is less than $ 30,000.00.
• The transferor is the director of the Veteran Lands Act (Canada) 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 (Canada).
• The transfer is filed to correct an error made 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 111(1) 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 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 (Canada).

Prior to claiming an exemption from land transfer tax, land titles recommends reviewing the provisions of The Tax Administration and Miscellaneous Taxes Act and consulting with a lawyer.