Manitoba Land Transfer Tax
How does the Land Transfer Tax in Manitoba Affect you?
When you buy property in Manitoba, you must pay a land transfer tax. In October 2023, the PC Party promised to pass a land transfer exemption for first-time home buyers in Manitoba. Unfortunately for them (and others looking forward to it), that did not work out. The buyer is responsible for paying this tax, not the seller.
This must be paid each time property is purchased. If you buy multiple properties to have rentals, you will have to pay the land transfer tax on them. You must pay this tax again if you sell your current home and buy a new one in Manitoba. This doesn't sit well with many property owners. Many purchase land and houses in Alberta and Saskatchewan instead of Manitoba to pay much less in land transfer taxes.
How is it Calculated?
The Land Transfer Tax in Manitoba is calculated based on the property's purchase price, ensuring a fair and transparent system. The percentage amount increases with different purchase price ranges, which means that the tax burden is proportionate to the property's value. This is an important factor to consider when you're in the market for a new property.
- The first $30,000 of the purchase price is tax-free.
- The next $60,000 of the purchase price is .05%
- The next $60,000 of the purchase price is 1%.
- Any property purchased for more than $200,000 is 2%.
When is it Paid?
The land transfer tax is considered part of your closing costs. It must be paid in full when you close on the property. Understanding that this cost can't be rolled into your mortgage is essential. You can use an online calculator to get the amount you owe, or your real estate agent can calculate it.
