The Canadian Taxpayers Federation released a home equity tax calculator to show how much money each Canadian homeowner could be required to pay if the federal government started taxing the sale of principle residences.
“Taxpayers should be worried that politicians will come after our homes to pay for their massive debts,” said Franco Terrazzano, Federal Director with the CTF. “A home equity tax would mean a lot of pain for many Canadians who rely on the sale of their home to save for their golden years or upgrade to their first family home.”
The CTF home equity tax calculator takes three of the most prominent home equity tax proposals and calculates how much it could cost a family when they sell their home.
For example, a family who bought their Toronto home for $250,000 in 1980 and sold it for $1.2 million today would pay between $51,750 and $190,000, depending on the home equity tax proposal.
There’s currently no home equity tax in Canada. However, in 2016, Ottawa made it mandatory for Canadians to report the sale of their primary residence even though it’s tax-exempt. Despite the Liberals and Conservatives promising not to impose a home equity tax, the federal government funded a report that recently called for an annual tax on Canadian homeowners.
“This new tax could make homes even more expensive because the cost would just be tacked on to the listing prices of homes,” said Kris Sims, B.C. Director with the CTF. “If politicians really want to make homes more affordable, they should get out of the way, cut red tape and taxes, and let Canadians build more homes.”
You can find the CTF’s home equity tax calculator here