Is There a Land Transfer Tax in Alberta? What You Pay Instead

If you have heard friends in other provinces complain about land transfer tax, you may wonder what to expect in Alberta. The short answer is that there is no such tax here, but that does not mean registering your purchase costs nothing.

This article explains what Alberta charges in place of a land transfer tax, how the levies are worked out, and a few situations where the rules differ. Details can change, so confirm current amounts before closing.

This article covers the law of Alberta.

No land transfer tax and no PST

Alberta charges no land transfer tax on a home purchase. Alberta also has no provincial sales tax, so no PST is charged on a home purchase; only federal GST can apply, and that is mainly to new homes and certain other cases.

What buyers pay instead are Land Titles registration charges, which are based on the value of the land, generally the purchase price.

The Land Titles transfer levy

Under section 64.1 of the Land Titles Act, a transferee named in an instrument that creates a lease, transfers ownership, or is a qualifying court order must pay a levy of $50 plus $5 for each $5000 or portion thereof of the value of the land or interest in land.

The words "or portion thereof" matter. Any part of a $5,000 increment is charged as a full increment, so a $400,000 value gives $50 plus 80 increments of $5, which is $450.

This rate is recent. The levy of $5 per $5,000 for both transfers and mortgages applies to submissions the Land Titles Office received on or after October 20, 2024. Before that date it was $2 per $5,000 for transfers and $1.50 per $5,000 for mortgages, so older articles and fact sheets may show lower figures.

The mortgage levy

If you borrow to buy, a second levy applies. Under section 102.1, a mortgagor pays $50 plus $5 for each $5000 or portion thereof of the principal secured when the mortgage, or a caveat claiming under an unregistered mortgage, is registered.

The mortgage levy is charged only when a mortgage or mortgage caveat is registered, so a buyer paying cash with no mortgage does not pay it. It is calculated on the principal amount secured, not the purchase price.

Exceptions and special cases

The levies have exceptions that rarely affect an ordinary home buyer but are worth knowing about.

• The transfer levy does not apply to the Crown in right of Canada or the Crown in right of Alberta, but it does apply to agents of the Crown in right of Alberta, the Minister of Municipal Affairs acting under Part 10 of the Municipal Government Act, and the Public Trustee.
• The transfer-of-ownership levy does not apply where the transferee's sole purpose is to transfer the land to a person with whom it has a mortgage agreement, the mortgagor pays no interest, and an affidavit is provided.
• For a lease, the value used is either the land's value including intended leasehold improvements, or 5% of that value multiplied by the years remaining in the lease term.
• If a new mortgage is from the same mortgagee as an existing one and is supplemental, collateral, a substitute or a partial replacement, the mortgage levy is calculated only on the additional interest or principal.
• An agreement amending a mortgage to increase the interest or principal carries the levy on the additional amount only.
• The mortgage levy does not apply to the Crown in right of Canada or the Crown in right of Alberta, other than the same agents and bodies listed for the transfer levy.

If the Registrar does not accept the transfer instrument, the transfer levy is returned to the transferee; the same applies to the mortgage levy.

What to do next

Fees for registering documents are listed in the Tariff of Fees Regulation (AR 120/2000) and must be paid when the documents are submitted. A separate Common Documents Fee Schedule lists the most common documents. Other fees, such as for issuing a new title, are set out there and may have been updated, so check the current schedule.

• Ask your lawyer for an estimate of the Land Titles charges before closing day.
• Tell your lawyer whether you are using a mortgage, since that adds a separate levy.
• Confirm whether the purchase involves a lease or other special structure that changes how value is calculated.
• Check the current Common Documents Fee Schedule and the Tariff of Fees Regulation for other registration fees.

Frequently asked questions