HomeHow much is land transfer tax in Northwest Territories?
The average land transfer tax in Northwest Territories is $14,288 which is the provincial tax based on the average home price in Canada. It is important to know the key aspects of land transfer tax in Northwest Territories. This includes who is responsible for paying land transfer tax to strategies that will help you avoid paying land transfer tax.
Northwest Territories land transfer tax
When you purchase land in Northwest Territories you will have to pay a provincial land transfer tax that is calculated as a marginal tax based on the purchase price of the home. Land transfer tax in Northwest Territories is always paid by the buyer this is also true when purchasing a home elsewhere in Canada.
| Purchase price of home | Marginal tax rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
How to avoid paying land transfer tax in Northwest Territories
There are a few situations in which you can avoid paying land transfer tax in Northwest Territories. It is important to consult and expert to know if you are required to pay land transfer tax. Some potential situations that allow for land transfer tax exemptions in Northwest Territories are:
- property transfers betweeen spouses
- property transfers of farmed land between family members
- property transfers to a family business corporation
Land transfer tax rebates in Northwest Territories
There is a first-time home buyer land transfer tax rebate in Northwest Territories which helps reduce the amount of provincial land transfer tax paid when purchasing a home in Northwest Territories. The maximum rebate offered in Northwest Territories is $4,000 which would cover land transfer tax on homes valued up to $368,000 in full.
