Wild Rose Country continues to be the destination of choice for tax refugees from Ontario and BC, the latest Statistics Canada numbers show.According to the agency’s quarterly demographics estimates, interprovincial migration to Alberta in the first three quarters of of 2023 doubled from what it says were “already-strong year-ago levels.”In the first nine months of last year, Alberta attracted 45,194 people from other parts of Canada compared to 22,278 during the same period in 2022. In the third quarter alone Alberta saw the greatest transfers from Ontario (6,262), followed by BC (5,269), Saskatchewan (1,579) and Manitoba (1,316). .“Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country's most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023,”RE/MAX.Only Nova Scotia, New Brunswick and PEI saw net inflows compared to losses in every other region of the country. All other provinces noted negative net interprovincial numbers, with more people leaving than arriving.According to real estate company Re/Max, the variance can be almost entirely attributed to eroding housing affordability levels in major Canadian cities outside the Calgary city limits.To coincide with the StatsCan numbers, the agency’s 2024 tax report found that governments at all levels are collecting billions from Canadian homebuyers through levies and development fees on new construction, as well as land transfer and property taxes on residential properties. “Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country's most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023,” it said."Given today's housing market realities, it comes as no surprise that buyers are willing to travel across the country to achieve home ownership," says Christopher Alexander, Re/Max’s Canadian president. .According to the Fraser Institute, the average Canadian family pays 45.3% of its income to taxes – more than the 35.6% spent on necessities of life.Fraser Institute.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. “Cash-rich buyers from provinces such as Ontario and BC are aware that the sale of their property in Toronto or Vancouver will stretch that much further in Alberta or Atlantic Canada's major centres. And for first-time buyers, it's an opportunity to get into the market at an affordable price point and gain equity, as opposed to paying down someone else's mortgage by renting."According to the Fraser Institute, the average Canadian family pays 45.3% of its income to taxes – more than the 35.6% spent on necessities of life. Now regressive tax policies are also to blame for the changing migration patterns. Land transfer taxes were introduced across Canada in the 1970s as a method of generating revenue for municipalities, regardless of income. The highest land transfer taxes are found in Toronto, where buyers pay a municipal land transfer tax as well as a provincial tax. On January 1 2024, Toronto upped the ante, introducing a luxury tax on home sales of more than $3 million. On an average-priced home in the city, buyers can expect to pay close to $40,000 in taxes.RE/MAX said the same factors are at play in BC, which used to attract migrants.“Years ago, the trend had been to move to the Okanagan to take advantage of lower prices, but in recent years, strong migration levels have accelerated housing values in cities such as Kelowna, Kamloops and Penticton.”Land transfer taxes are non-existent in Alberta, although most buyers pay a registration fee around $300. In addition, there are no provincial sales taxes.
Wild Rose Country continues to be the destination of choice for tax refugees from Ontario and BC, the latest Statistics Canada numbers show.According to the agency’s quarterly demographics estimates, interprovincial migration to Alberta in the first three quarters of of 2023 doubled from what it says were “already-strong year-ago levels.”In the first nine months of last year, Alberta attracted 45,194 people from other parts of Canada compared to 22,278 during the same period in 2022. In the third quarter alone Alberta saw the greatest transfers from Ontario (6,262), followed by BC (5,269), Saskatchewan (1,579) and Manitoba (1,316). .“Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country's most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023,”RE/MAX.Only Nova Scotia, New Brunswick and PEI saw net inflows compared to losses in every other region of the country. All other provinces noted negative net interprovincial numbers, with more people leaving than arriving.According to real estate company Re/Max, the variance can be almost entirely attributed to eroding housing affordability levels in major Canadian cities outside the Calgary city limits.To coincide with the StatsCan numbers, the agency’s 2024 tax report found that governments at all levels are collecting billions from Canadian homebuyers through levies and development fees on new construction, as well as land transfer and property taxes on residential properties. “Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country's most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023,” it said."Given today's housing market realities, it comes as no surprise that buyers are willing to travel across the country to achieve home ownership," says Christopher Alexander, Re/Max’s Canadian president. .According to the Fraser Institute, the average Canadian family pays 45.3% of its income to taxes – more than the 35.6% spent on necessities of life.Fraser Institute.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. “Cash-rich buyers from provinces such as Ontario and BC are aware that the sale of their property in Toronto or Vancouver will stretch that much further in Alberta or Atlantic Canada's major centres. And for first-time buyers, it's an opportunity to get into the market at an affordable price point and gain equity, as opposed to paying down someone else's mortgage by renting."According to the Fraser Institute, the average Canadian family pays 45.3% of its income to taxes – more than the 35.6% spent on necessities of life. Now regressive tax policies are also to blame for the changing migration patterns. Land transfer taxes were introduced across Canada in the 1970s as a method of generating revenue for municipalities, regardless of income. The highest land transfer taxes are found in Toronto, where buyers pay a municipal land transfer tax as well as a provincial tax. On January 1 2024, Toronto upped the ante, introducing a luxury tax on home sales of more than $3 million. On an average-priced home in the city, buyers can expect to pay close to $40,000 in taxes.RE/MAX said the same factors are at play in BC, which used to attract migrants.“Years ago, the trend had been to move to the Okanagan to take advantage of lower prices, but in recent years, strong migration levels have accelerated housing values in cities such as Kelowna, Kamloops and Penticton.”Land transfer taxes are non-existent in Alberta, although most buyers pay a registration fee around $300. In addition, there are no provincial sales taxes.
