LAND TRANSFER TAX REFUND
First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial land transfer tax. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000.
- Provincial LTT is payable anywhere in Ontario
- Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).
- For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.
- First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13,
- The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.landtransfertax.com):
- 0.5% of the amount of the purchase price up to and including $55,000, plus
- 1% of the amount of the purchase price between $55,000 and $250,000, plus
- 1.5% of the amount of the purchase price between $250,000 and $400,000, plus
- 2% of the amount of the purchase price above $400,000
First-Time Buyer Eligibility
To be eligible as a first-time buyer for the provincial LTT rebate:
- The purchaser must be at least 18 years of age.
- The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
- The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
- If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchas- er’s spouse. If this is the case, NO refund is available to either spouse.
- Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.
For more information
Contact the Ministry of Revenue at 1-800-263-7965 or visit www.fin.gov.on.ca.
Due to regular changes in government programs, OMDREB doesn't guarantee that this is the most recent information. Please see the respective websites for the most up-to-date information.