File and pay property transfer tax

When you register an interest in a property, you or your legal professional must file a property transfer tax return. Unless you qualify for an exemption, you must also pay property transfer tax and, if applicable, the additional property transfer tax.

The Land Title Office may refuse to register your property transfer if the tax isn’t paid on the date the transfer is registered.

How to file and pay

In most cases, property transfers are completed by a legal professional and they submit your return and payment to the Land Title Office.

If you’re a legal professional filing on behalf of your client, you must use the web-based property transfer tax return and pay the property transfer tax. For more details, see information for legal professionals on filing a property transfer tax return.

Surviving joint tenant

If you’re an individual who’s transferring an interest from another joint tenant who is deceased, you can complete the Surviving Joint Tenant Manual Property Transfer Tax Return (FIN 544) (PDF) without using a legal professional to claim that exemption from the property transfer tax.

Follow the instructions provided on the form on how to complete and submit it to the Land Title Office with your land title application.

This exemption doesn’t apply to the additional property transfer tax.

Tax avoidance, penalties and offences

All property transfer transactions are subject to audit and all property transfer tax returns will be reviewed and verified. The audit period is six years from the date the transfer is registered with the Land Title Office.

Anti-avoidance provisions exist and will be enforced to ensure all property purchasers report and pay the correct amount of property transfer tax or additional property transfer tax, including examining circumstances where Canadians, as taxable trustees, hold property in trust for a foreign entity or are trustees where a beneficiary may be a foreign entity.

Failure to pay the tax as required or purposely completing the property transfer tax return or the additional property transfer tax return with incorrect or misleading information may result in a penalty. These penalties may include double the tax, tax plus interest, a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison. The penalties apply to anyone who participates in tax avoidance.