Most Canadians moving to Alberta to avoid land transfer tax, report finds

Alberta has become a premium choice for out-of-province home buyers as land transfer tax continues to impact their decision, a new survey has revealed. 

Housing rate, tax increases and interest rate hikes have been stirring an inter-provincial migration away from Ontario and B.C. towards Alberta.

Re/Max Canada 2024 Tax Report inspected all three factors in crucial markets of the country including Vancouver, Calgary, Winnipeg, Toronto, Montreal and Halifax.

Leger conducted the survey on behalf of Re/Max in the middle of last year and found out that one in four Canadian nationals agreed that land transfer tax impacted their decision of owning a home.

The report concluded that most people chose to move within their respective provinces. However, the report found that nearly 60,000 moved to Alberta, Nova Scotia, New Brunswick and Prince Edward Island. 

Alberta, where land transfer tax is not unveiled, is the biggest attraction for new homeowners. 

The report said the combination of lower taxes, affordable housing, and greater job opportunities (in Calgary) are expected to continue to draw purchasers from out-of-province, many of whom have been priced out by rapidly rising housing values and taxes in their own provinces.

“Given today’s housing market realities, it comes as no surprise that buyers are willing to travel across the country to achieve home ownership,” said Re/Max Canada president Christopher Alexander.

“In addition to affordable housing values and extensive job opportunities, Alberta is well known for its position on taxation, with no provincial sales tax and zero land transfer tax on residential real estate.”

The study reveals that 40% of Generation Z and 35% of Millennials feel that land transfer taxes have impacted their ability to buy a home. This sentiment is less common among older generations, with 26% of Generation X and 21% of Baby Boomers expressing similar concerns.