While residents aren’t happy with the land transfer tax in Winnipeg, it is just part of the process. Knowing what the price is going to be is very important to budget for. Any time that a person sells property, the tax will need to be paid by the buyer. This tax is in place to cover the administrative costs involved with the paperwork for land transfers.
Exemptions
There are certain types of land ownership transfers that can occur in Winnipeg without this transfer tax being assessed. This includes:
- Transfers of farmland as long as it will continue to be used for farming
- Transfers from a non-profit organization to another charitable organization
- Transfers to a charity
- Transfers under the Indian Act
- Transfers from spouse to spouse as long as it isn’t commercial property
How is it Calculated?
The amount of the tax is determined based on the current fair market value of that particular property. The following chart can help you get a good idea of the amount of the tax:
- Property up to $30,000 = 0%
- Property from $30,001 to $90,000 = .5%
- Property from $90,001 to $150,000 = 1%
- Property from $150,001 to $200,000 = 1.5%
- Property that is $200,001 and higher = 2%