Land Transfer Tax

Land transfer tax is a mandatory fee imposed on property buyers in Ontario, including the city of Toronto. It is calculated based on the purchase price of the property and is payable upon closing.

Ontario Land Transfer Tax Calculator

In addition to the provincial land transfer tax, Toronto also imposes the Municipal land transfer tax. This tax is calculated using a different rate structure and is payable on top of the provincial tax. However, similar to the Provincial rebate, first-time homebuyers in Toronto can also receive a rebate of up to $4,475 on the Municipal land transfer tax. This rebate further assists first-time buyers in successfully entering the Toronto real estate market.

Ontario Land Transfer Tax

• First $55,000 X 0.5%
• On $55,000 to $250,000 X 1%
• On $250,001 to $400,000 X 1.5%
• Over $400,001 X 2.5% where the land contains one or two single family residences.

Land Transfer Tax Refund for First-Time Home Buyers: This rebate provides a refund of up to $4,000.00 on the provincial land transfer tax paid by eligible first-time home buyers in Ontario.

Eligibility of the buyer

• The buyer must be a Canadian citizen or permanent resident.
• The buyer must be 18 years of age or older.
• The buyer must occupy the home as their principal residence within nine months of the date of the transfer.
• The buyer cannot have owned a home or an interest in a home anywhere in the world.

Additional Toronto Land Transfer Tax

• 0.5% on first $55,000
• 1% on next $345,000
• 2% on portion over $400,000

In addition to the Provincial rebates available in Ontario, there is a first-time home buyer rebate specific to the City of Toronto called the Toronto Land Transfer Tax (TLTT) Rebate. The TLTT rebate provides eligible first-time home buyers with a refund of up to a certain amount of the municipal land transfer tax paid when purchasing a home in Toronto.

Eligibility of the buyer

• The buyer must be at least 18 years old.
• The buyer must occupy the home as their principal residence within nine months of the date of the transfer.
• The buyer cannot have owned a home or an interest in a home anywhere in the world.
• The maximum eligible rebate amount is $4,475.00.
  
  

Eligibility of the property

• A detached home, semi-detached home, townhouse or condominium unit. 
• Shares of the capital stock of a co-operative corporation if the shares are acquired for the purpose of acquiring the right to inhabit a housing unit owned by the corporation. 
• A residential unit is a duplex, triplex or fourplex. In addition, if you buy a house or duplex that costs more than two million dollars, the tax will increase from 2% to 2.5% for every dollar over two million. 
• A partial ownership interest as a tenant in common of real property if the ownership interest was acquired for the purpose of inhabiting a housing unit forming part of the real property.
• A newly constructed home built by a builder registered with TARION warranty corporation.
• Any other residential property as may be prescribed.
  
  

Restrictions on amount claimed

Refund is reduced between non-spouses for the proportionate interest of the co-owner who is not eligible between spouses. If one spouse is a first-time home buyer and the other owned a home before, but not since becoming a spouse of the first-time home buyer, then the spouse who is the first-time home buyer would claim the whole rebate. Investment properties do not qualify for the first time buyer rebate.

For more information on land transfer tax rebate, speak to your real estate lawyer or visit the Ministry of Finance website.