Understanding the land transfer tax system is essential for proper budgeting when purchasing property in the Yukon Territory. Unlike most Canadian provinces that charge traditional land transfer taxes, Yukon implements a unique fee structure that’s typically less costly but equally important to account for during the home-buying process.
What is the Yukon Land Transfer Tax
Yukon Territory does not technically have a “land transfer tax”. Instead, homebuyers in Yukon pay what’s officially known as Land Titles Fees. These fees are significantly lower than the land transfer taxes found in provinces like Ontario or British Columbia, making Yukon a potentially more affordable option from a closing cost perspective.
Land Title Fees in Yukon are regulated under the Yukon Land Titles Act, 2015, which establishes the system for registering title to privately owned lands. These fees cover the administrative costs of transferring property ownership and maintaining the land registry system, which ensures secure property rights throughout the territory.
Understanding what you’ll pay and why you’ll pay it is important, but it’s also important to recognize that these fees are an unavoidable part of property transactions in the Yukon.
How Much Will You Pay in Yukon Land Titles Fees
The Yukon Land Titles Fee system consists of three primary components that determine your total payment when purchasing property:
- Transfer Fees: A flat fee based on the purchase price of your property
- Mortgage Fees: A flat fee based on the value of the mortgage you’re taking out
- Assurance Fund Fees: An additional fee that applies only in specific circumstances
Understanding these three components is essential for accurately calculating your total closing costs when purchasing property in Yukon.
How Do You Calculate Your Total Land Titles Fees in Yukon
Calculating your Land Title Fees in Yukon involves adding together the applicable Transfer Fee, Mortgage Fee, and any Assurance Fund Fee.
Yukon Property Transfer Fees
The Land Titles Office charges a flat fee for property transfers based on the declared value of the property. These fees are structured in tiers according to property value:
| Property Value | Transfer Fee |
|---|---|
| Less than $100,000 | $50 |
| $100,000 to $499,999 | $150 |
| $500,000 to $2,999,999 | $350 |
| $3,000,000 to $9,999,999 | $550 |
| $10,000,000 or more | $750 |
Yukon Mortgage Registration Fees
Similarly, there’s a separate fee structure for registering a mortgage on the property:
| Mortgage Value | Registration Fee |
|---|---|
| Less than $100,000 | $50 |
| $100,000 to $499,999 | $100 |
| $500,000 to $999,999 | $200 |
| $1,000,000 to $4,999,999 | $400 |
| $5,000,000 to $9,999,999 | $600 |
| $10,000,000 to $19,999,999 | $800 |
| $20,000,000 or more | $1,000 |
These straightforward tiered fee structures make estimating your land title fees relatively simple when budgeting for a property purchase in Yukon.
Yukon Assurance Fund Fee
The Assurance Fund Fee is an additional charge that applies only when the declared value of the purchased property exceeds its value at the time of its last transfer. This fee helps maintain the integrity of the land registry system by compensating individuals who might suffer loss due to errors in the registry.
The Assurance Fund Fee is calculated as follows:
- $20 for the first $10,000 of additional declared value
- $10 for each additional $10,000 (or portion thereof) of additional declared value
For most standard property transactions where values have increased since the last sale, expect to pay some amount toward the Assurance Fund.
Source: Land Title Act 2015
Example 1: Standard Property Purchase
Let’s say you’re purchasing a home for $450,000 with a mortgage of $400,000. The property’s value at its last transfer was $400,000.
- Transfer Fee: $150 (for property valued between $100,000 and $499,999)
- Mortgage Fee: $100 (for the mortgage valued between $100,000 and $499,999)
- Assurance Fund Fee:
- Additional declared value: $450,000 – $400,000 = $50,000
- First $10,000: $20
- Remaining $40,000 (4 × $10,000): 4 × $10 = $40
- Total Assurance Fund Fee: $60
Total Yukon Land Titles Fees: $150 + $100 + $60 = $310
Example 2: High-Value Property Purchase
For a property valued at $750,000 with a mortgage of $600,000, where the previous transfer value was $600,000:
- Transfer Fee: $350 (for property valued between $500,000 and $2,999,999)
- Mortgage Fee: $200 (for the mortgage valued between $500,000 and $999,999)
- Assurance Fund Fee:
- Additional declared value: $750,000 – $600,000 = $150,000
- First $10,000: $20
- Remaining $140,000 (14 × $10,000): 14 × $10 = $140
- Total Assurance Fund Fee: $160
Total Land Titles Fees: $350 + $200 + $160 = $710
By understanding the fee structure and performing these calculations, you can accurately budget for your Land title fees when purchasing property in Yukon.
Land Transfer Tax Rebates in Yukon
Yukon Territory does NOT provide any rebates or exemptions on Land transfer tax. This applies to all buyers, regardless of whether you’re a first-time homebuyer or a seasoned property investor.
The absence of rebates is partially offset by the fact that Yukon’s Land Title Fees are generally much lower than the land transfer taxes found in other Canadian jurisdictions. For example, a $500,000 property purchase in Ontario might incur a land transfer tax of approximately $6,475, while in Yukon, the Transfer Fee would be just $350 (plus applicable Mortgage and Assurance Fund Fees).
Read more to know how different regions in Canada charge their Land Transfer Tax:
- BC Property Transfer Tax
- Ontario Land Transfer Tax
- Alberta Land Transfer Tax
- Saskatchewan Land Transfer Tax
- Nova Scotia Land Transfer Tax
- Quebec Welcome Tax
How Does the GST Apply to Home Purchases in Yukon?
A 5% Goods and Services Tax (GST) is applicable in Yukon Territory on the purchase of newly constructed homes or substantially renovated properties. This federal tax represents a significant additional cost when purchasing new construction.
GST New Housing Rebate
The federal government offers the New Housing Rebate (NHR) program, which can help offset some of the GST costs:
- The rebate is 36% of the GST paid
- The maximum rebate amount is $6,300 (which corresponds to a home value of approximately $350,000)
- The rebate is gradually reduced for homes valued between 350,000 and 450,000.
- No rebate is available for homes valued above $450,000
GST for Investment Properties
If you’re purchasing a newly built property as an investment rather than as your primary residence, different GST rules apply:
- The property is still subject to a 5% GST
- You may be able to claim the GST as a legitimate business expense
- You might qualify for the New Residential Rental Property Rebate (NRRPR), specifically designed for investors
Understanding GST implications is particularly important when purchasing new construction in Yukon, as it represents a substantial additional cost that doesn’t apply to resale properties.
How Do You Register Documents with the Yukon Land Titles Office
Understanding the document registration process with the Yukon Land Titles Office is essential for completing your property transaction:
Typical documents required for property transfer registration include:
- Transfer of Land: The main document transferring ownership
- Mortgage: If applicable, to register the lender’s interest
- General Instrument: For additional interests or charges
- Supporting Documents: These may include corporate documents, powers of attorney, etc.
The Land Titles Office accepts payment through several methods:
- Prepaid account (minimum initial deposit of $25)
- Cheque
- Credit card
- Cash
- Debit card
You can submit documents to the Land Titles Office through:
- Drop Box: Available outside the office doors
- In-Person: During regular office hours (Monday to Friday, 9 a.m. to 4 p.m.)
- Email: For certain document types
- Mail: For all document types
Ensuring your documents are properly prepared and submitted with the correct fees will help avoid delays in registering your property transfer.
FAQs about Yukon Land Title Fee
What happens if I understate the value of my property to reduce Land Titles Fees in Yukon?
Deliberately understating property value is considered fraud and can result in legal penalties. The Land Titles Office may also compare your declared value with market assessments, potentially delaying your registration until discrepancies are resolved.
When do I have to pay the Land Titles Fees in Yukon?
Land Titles Fees must be paid at the time of document submission to the Land Titles Office. Under the Yukon Land Titles Act of 2015, the office is required to receive payment before providing any service, including property transfers.
Where can I find the current declared value of a property in Yukon?
You can find the current declared value of a property by requesting a copy of the Certificate of Title from the Land Titles Office or through the online Yukon Land Title Registry (YLTR).
Why is there no Land Transfer Tax rebate for first-time homebuyers in Yukon?
Yukon doesn't offer rebates because its Land Title Fees are already significantly lower than provincial land transfer taxes. For example, the maximum transfer fee in Yukon is $750, while in Ontario, taxes on an equivalent property could exceed $20,000.
By understanding the Yukon Land Title Fee system, you can accurately calculate your costs and avoid surprises during the closing process.
Whether you’re a first-time homebuyer, an investor, or a non-resident, this guide provides the information you need to navigate the Yukon Land Title Fee system confidently. Consider consulting with legal and financial professionals for advice specific to your circumstances when purchasing property in the Yukon Territory.
