HomeLife Silvercity Realty Inc.
Karan Sokhey
Land Transfer Tax Refund
How To Save With Land Transfer Tax
First-time buyers of new and re-sale homes are eligible for rebates on provincial and Toronto land transfer taxes. The maximum that first-time home buyers can receive for provincial land transfer tax (LTT) is $4,000 and for Toronto’s Land Transfer Tax its $4,475.
Land Transfer Tax Calculator
[Land Transfer Tax Calculator Coming Soon]
How to Calculate Land Transfer Tax
Land transfer taxes are calculated based on the purchase price of your property. Every province has their own land transfer tax rates, as do many local municipalities. I encourage you to use the Land Transfer Tax Calculator above to find your land transfer tax calculated by where you live.
Are You Eligible for the Land Transfer Tax Rebate
- Buyer must be a Canadian citizen or permanent resident of Canada
- Buyer must be older than 18 years
- Buyer must occupy the home within nine months of purchase
- Buyer cannot have owned a home anywhere in the world
- Buyer’s spouse cannot have owned a home while being your spouse
Ontario Land Transfer Tax Refund
Ontario’s Land Transfer Tax (LTT) is payable anywhere in the provide, including Toronto. The maximum amount that a first-time buyer can receive in Ontario is $4,000. For re-sale homes in Ontario, the provincial rebate only applies to first-time buyers who who are over the age of 18 years and are a permanent resident of Canada.| Purchase Price of Home | Marginal Tax Rate | |||
|---|---|---|---|---|
| First $55,000 | 0.5% | |||
| $55,000.01 to $250,000.00 | 1.0% | |||
| $250,000.01 to $400,000.00 | 1.5% | |||
| $400,000.01 to $2,000,000.00 | 2.0% | |||
| Over $2,000,000 | 2.5% | |||
Land Transfer Tax Savings Example
Based on Ontario land transfer tax rates, the refund will cover the fully taxed amount on houses up to $368,000. For houses over $368,000, homebuyers will receive the maximum $4,000 refund and have to pay the remaining LTT balance. To obtain this refund, you need to apply within 18 months after the purchase of the home.
Toronto Land Transfer Tax Refund
If you are purchasing a house or condo in Toronto, there is an additional municipal land transfer tax. Toronto’s land transfer tax applies within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border and Lake Ontario as the South border| Purchase Price of Home | Marginal Tax Rate | |||
|---|---|---|---|---|
| First $55,000 | 0.5% | |||
| $55,000.01 to $250,000.00 | 1.0% | |||
| $250,000.01 to $400,000.00 | 1.5% | |||
| $400,000.01 to $2,000,000.00 | 2.0% | |||
| Over $2,000,000 | 2.5% | |||
Toronto first-time homebuyer land transfer tax rebate
First-time homebuyers in Toronto of new and resale homes are eligible to receive a rebate up to a maximum of $4,475.
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