Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home.
All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a percentage of property value, using asking price as a close estimate. Homebuyers in Toronto also incur an additional municipal tax.
To help offset the unwelcome cost, Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers.
Land transfer taxes are calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, and there are also special rules when buying real estate in Toronto and Montreal. Use the figures below to find the land transfer tax based on buying a home in Ontario.
Ontario Land Transfer Tax
| Purchase Price of Home |
Marginal Tax Rate |
| First $55,000 |
0.5% |
| On $55,000 to $250,000 |
1.0% |
| On $250,000 to $400,000 |
1.5% |
| Over $400,000 |
2.0% |
Ontario First-Time Homebuyer Land Transfer Tax Rebate
The Ontario land transfer tax rebate is equal to the full value of the land transfer tax
up to a maximum of $2,000. To be eligible for this credit, the following applies:
- The Buyer must be older than 18 years.
- The buyer must occupy the home within 9 months of purchase.
- The buyer connot of owned a home anywhere in the world.
- The buyers spouse cannot of owned a home while being your spouse.
- If you purchase a new home, it must be eligible for home warranty.
Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227,500. For houses over $227,500, homebuyers will receive the maximum $2,000 rebate.
To obtain this refund, you need to apply within 18 months after the purchase of the home.
Toronto Land Transfer Tax
| Purchase Price of Home |
Marginal Tax Rate |
| First $55,000 |
0.5% |
| On $55,000 to $400,000 |
1.0% |
| Over $400,000 |
2.0% |
Toronto First-Time Homebuyer Land Transfer Tax Rebate
First-time homebuyers in Toronto of new and resale homes are eligible to receive
a refund up to a maximum of $3,725. Eligibilty as follows:
- The Buyer must be older than 18 years.
- The buyer must occupy the home within 9 months of purchase.
- The buyer connot of owned a home anywhere in the world.
- The buyers spouse cannot of owned a home while being your spouse.
- If you purchase a new home, it must be eligible for home warranty.
You can contact me with any further questions.
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