Land transfer tax is a one-time tax payable to the local government bodies in the area where the land is being bought. This tax is usually calculated as a percentage of the total price of the property and not paying this tax in time can have serious legal consequences.

Since the cost of the property affects the tax directly, buyers can enquire about rebates etc. when dealing with property prices. Some governments go to the extent of waiving of land transfer tax in some cases e.g. when the buying party involved is getting their first residence.

The land transfer tax is usually stated as part of the law and hence doesn’t change very often. It is utilized by the governing bodies for the improvement of the area e.g. roads, water facilities, schools etc. this tax is different from the name change fee that is incurred when property is transferred from one person to another.

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