Buying a home in Calgary is an exciting milestone, but it also comes with important financial considerations, including the Alberta land transfer tax. While many provinces impose a land transfer tax that can add thousands of dollars to your closing costs, Alberta takes a very different (and more affordable!) approach.

 

Understanding what fees apply, how they’re calculated, and whether any savings or exemptions are available can help you budget more confidently and avoid surprises on closing day.

Land Transfer Tax Alberta

The good news for Alberta homebuyers is that there is no separate provincial land transfer tax in Alberta. Unlike provinces like Ontario or British Columbia, where buyers pay a hefty percentage tax on the purchase price of the property, Alberta takes a simpler (and much cheaper) approach. Neither the Province of Alberta nor the City of Calgary charges a traditional land transfer tax on real estate purchases, so you won’t face a big tax bill just for transferring the property.

However, Alberta does charge a land title transfer fee (and a mortgage registration fee, if you have a mortgage). These are government title fees for registering the change in ownership and any new mortgage amount on the title. In essence, Alberta replaced the typical “land transfer tax” with flat Land Titles Office fees, which are much smaller than the taxes seen elsewhere.

How Much Are Alberta’s Land Title Transfer Fees?

Alberta does not charge a traditional land transfer tax, but there are two government registration fees you’ll need to pay when purchasing a property:

• Land Title Transfer Fee (based on the property’s value)
• Mortgage Registration Fee (based on the mortgage amount, if applicable)

These fees are set by the Alberta Land Titles Office and follow a simple formula: registration fees you’ll need to pay when purchasing a property:

• Base fee: $50 per registration
• Additional fees: $5 for every $5,000 (or portion thereof) of the property value and/or principal mortgage amount

For instance, if you buy a home that has a purchase price of $400,000 in Calgary with a $320,000 mortgage, the fees would be as follows.

Land Title Transfer Fee:

• $400,000 ÷ $5,000 = 80 increments
• 80 × $5 = $400
• Add base fee of $50
• Total: $450

Mortgage Registration Fee:

• $320,000 ÷ $5,000 = 64 increments
• 64 × $5 = $320
• Add base fee of $50
• Total: $370

Combined total: $450 + $370 = $820

This includes the base fee, the purchase price fee, and the mortgage registration fee. If you’re buying the same $400,000 home without a mortgage, you would only pay the land title transfer fee, which would be $450 for residential properties.

It’s also important to know that Alberta calculates the land title transfer fee based on the fair market value of the property, not just the purchase price. This means you can’t significantly understate the purchase price to reduce the fee, even in private sales or transfers between family members.

These fees are paid once at closing and are typically the buyer’s responsibility. Your real estate lawyer will collect them as part of the closing process and remit them directly to the Land Titles Office when registering the new ownership and mortgage.

As of October 2024, the Alberta land transfer fee rate increased from $2 per $5,000 to $5 per $5,000. This now works out to $1 per $1,000 of value plus the $50 base. Despite this change, Alberta’s property registration fees remain low compared to other provinces.

Can You Avoid or Minimize Land Transfer Tax in Alberta?

One common question is whether there are legal ways to avoid or reduce Alberta land transfer fees or taxes. Since there is no Alberta land transfer tax in the traditional sense, there isn’t much to avoid – every property purchase will require paying the standard Land Titles fees.

In other provinces with steep land transfer taxes, there are sometimes incentives or rebates to help first-time homebuyers avoid the tax. For instance, first-time homebuyers rebates can refund a portion of the tax in places like Ontario (up to $4,000). Some jurisdictions also waive the land transfer tax when transferring property between immediate family members, such as from a parent to a child, between spouses, or to a family member. Certain farm property transfers or transfers of newly built homes can also be exempt in specific provinces.

However, in Alberta, these scenarios aren’t really applicable. Alberta does not offer any rebates for land title transfer fees or mortgage registration fees. This is not because Alberta has special loopholes but because there is no large Alberta land transfer tax to begin with. If you receive a property as a gift or through an inheritance in Alberta, you won’t owe tax, but you’ll still need to pay the Land Titles registration fee to officially transfer the title. Speak to one of our estate planning lawyers to ensure your property can be transferred smoothly to loved ones and without additional fees.

Sometimes, the federal government offers programs like the First-Time Home Buyers’ Tax Credit (HBTC), which homebuyers can take advantage of in Alberta. This credit isn’t specifically for land transfer fees, but it helps offset some of your closing costs in general. However, these programs change often, and you’ll need to see what federal programs are running at the time of purchase.

Can You Claim Land Transfer Fees on Your Tax Return?

When tax season rolls around, new homeowners often wonder if they can claim land transfer taxes or fees on their income tax return. In Alberta (and Canada-wide), land transfer costs are not tax-deductible and generally cannot be claimed on your personal income tax.

In fact, the Canada Revenue Agency explicitly disallows deducting land transfer taxes or title fees when buying a home. The same goes for other closing costs like your legal fees or home inspection costs – they are part of buying the property, not expenses you can subtract from income.

Apart from this, the only way land transfer costs benefit you tax-wise is if the property is an investment or rental: in that case, the land transfer tax/fees paid become part of your property’s cost base, which could reduce capital gains tax when you eventually sell.

Helping You Navigate the Alberta Land Transfer Tax

The absence of a large land transfer tax in Calgary is a welcome relief for buyers, but it’s still important to know about the land title transfer fees you will pay. As a Calgary-based real estate law firm, we’re here to help make your purchase seamless and stress-free, whether it is for your primary residence, a second home, or a commercial real estate investment. Our experienced team will guide you through the property transfer process, ensure all fees (like land title charges) are clearly explained upfront and handle all the legal documents and paperwork so that your closing day goes smoothly.

Reach out to our law firm now to discuss your home purchase and discover how we can assist you every step of the way. We offer home buyers upfront pricing and no hidden fees to help you move in with peace of mind. Your dream home is waiting.

The content of this article is intended to provide a general guide to the subject matter and should not be considered legal or other professional advice. To get detailed information regarding your specific circumstances, please discuss your situation with a lawyer or other professional. Refer to our Legal Notice  for more details.