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Commercial Land Transfer Tax Calculator (BC, Ontario, Alberta)
Commercial property buyers pay the same land transfer tax bands as residential buyers, but without the first-time-buyer and newly-built exemptions — and GST or HST usually applies to the purchase price as well. This calculator estimates BC Property Transfer Tax, Ontario Land Transfer Tax with the Toronto municipal tax, or Alberta land title and mortgage registration fees, then adds 5% GST or 13% HST. Registered buyers who self-assess normally show zero net sales tax cash at closing.
Short answer
How much land transfer tax is payable on a commercial property?
Commercial purchases are charged land transfer tax on the same provincial scales as residential property, with no first-time buyer rebates available. Ontario applies provincial tax plus the Toronto municipal tax inside the city, British Columbia applies property transfer tax with additional tax above a higher-value threshold, and Alberta charges registration fees instead. GST may also apply to a commercial purchase, which is separate from transfer tax and often handled through the buyer's GST registration.
Your purchase
Most commercial real estate purchases are taxable.
Registrants normally self-assess on their next return and claim an offsetting input tax credit — roughly zero net cash at closing.
Cash payable at closing
$38,000
on $2,000,000 in British Columbia
British Columbia breakdown
- BC Property Transfer Tax
- $38,000
- GST (5%) charged
- $100,000
- Sales tax cash at closing
- $0
- Total cash at closing
- $38,000
1% on the first $200K · 2% to $2M · 3% above $2M
Estimates only. Final amounts depend on legal status, exemptions, GST/HST registration and lender requirements — confirm with your lawyer or notary.
Results are estimates for general guidance only and do not constitute an offer of credit. Actual figures depend on lender policy, credit history, and verified documentation. Call (604) 780-5173 for exact numbers.
Key takeaways
- BC Property Transfer Tax on commercial property is 1% on the first $200,000, 2% to $2 million and 3% above that, with no upper band.
- Ontario commercial land transfer tax tops out at 2% above $400,000; the 2.5% band applies only to one- and two-unit residential properties.
- Toronto charges a municipal land transfer tax that roughly doubles the Ontario bill.
- Alberta has no land transfer tax — only a land title transfer fee and a separate mortgage registration fee.
- Most commercial real estate purchases are GST/HST-taxable, unlike used residential property.
- A GST/HST-registered buyer usually self-assesses on their next return and claims an offsetting input tax credit, so the net cash cost at closing is roughly zero.
British Columbia — Property Transfer Tax on commercial
BC charges 1% on the first $200,000, 2% from $200,000 to $2,000,000 and 3% on everything above $2,000,000. The additional 2% band that applies to residential property over $3,000,000 does not apply to commercial land, and neither does the 20% foreign-buyer tax on residential property.
On a $2,000,000 commercial purchase the tax is $38,000. There is no upper limit, so the bill scales in a straight line above $2 million.
Ontario — provincial LTT plus Toronto's municipal tax
Ontario applies 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000, and 2% on the remainder. The additional 2.5% band above $2 million applies only to properties with one or two single-family residences, so commercial buyers stay at 2%.
Property inside the City of Toronto is charged a municipal land transfer tax as well, mirroring the provincial commercial bands — effectively doubling the tax on a commercial deal.
Alberta — title and mortgage registration fees only
Alberta has no land transfer tax. Instead the Land Titles Office charges a transfer fee of $50 plus $5 for every $5,000 of property value, and a mortgage registration fee of $50 plus $5 for every $5,000 of the mortgage amount.
On a $2,000,000 purchase with a $1,400,000 mortgage the combined fees are around $3,500 — a fraction of the equivalent bill in BC or Ontario, and a real factor in where investors buy.
GST and HST on commercial property
Commercial real estate is generally taxable: 5% GST in BC and Alberta, 13% HST in Ontario. This catches buyers who expect the residential resale exemption to apply.
If the buyer is GST/HST-registered, they typically self-assess the tax on their next return and claim an offsetting input tax credit at the same time, so no money changes hands at closing. Unregistered buyers must fund the tax on completion day, which is a large cash item on a multi-million dollar purchase.
Worked example
Worked example: $2,000,000 commercial purchase
| British Columbia PTT | $38,000 |
|---|---|
| Ontario LTT (outside Toronto) | $36,475 |
| Ontario LTT + Toronto MLTT | $72,950 |
| Alberta title and mortgage fees | ≈ $3,500 |
| GST at 5% (BC / AB) | $100,000 |
| HST at 13% (ON) | $260,000 |
| Sales tax cash for a registered buyer | $0 |
Transfer tax alone swings from about $3,500 in Alberta to nearly $73,000 in Toronto on the same $2,000,000 purchase. Sales tax is the larger number on paper, but a registered buyer who self-assesses normally pays nothing in cash for it at closing.
Frequently asked questions
Do commercial buyers pay land transfer tax in Canada?
Yes, in BC and Ontario. Alberta charges only land title transfer and mortgage registration fees rather than a transfer tax.
How much is land transfer tax on a $2 million commercial property?
About $38,000 in British Columbia, $36,475 in Ontario outside Toronto, roughly $72,950 inside Toronto, and around $3,500 in Alberta in title and mortgage registration fees.
Is GST charged on commercial real estate?
Usually yes — 5% GST in BC and Alberta, 13% HST in Ontario. Unlike used residential property, commercial real estate is generally taxable.
What is GST self-assessment on a commercial purchase?
A GST/HST-registered buyer reports the tax on their own return and claims an offsetting input tax credit at the same time, so no tax is paid to the seller at closing.
Does the first-time buyer exemption apply to commercial property?
No. First-time-buyer and newly-built home exemptions apply only to residential purchases.
Can land transfer tax be added to the mortgage?
Not directly — it is a closing cost that has to be funded in cash. Commercial lenders will factor the total cash to close into their assessment of your equity contribution.
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