Land Transfer Tax

In Toronto, on the purchase of a home you pay the Provincial Land Transfer Tax as well as the City of Toronto Land Transfer Tax when ownership of a property is transferred from one party to another.

 

If you are a first time homebuyer you may be eligible for a rebate on these taxes. Both taxes are calculated based on the purchase price using a graduated scale and are payable on closing.

Provincial Land Transfer Tax

 

The Ontario Provincial Land Transfer Tax for residential properties is calculated as follows:

• 0.5% on the first $55,000 of the purchase price, plus
• 1.0% on the amount exceeding $55,000 up to and including $250,000, plus
• 1.5% on the amount exceeding $250,000 up to and including $400,000, plus
• 2.0% on the amount over $400,000

Provincial Land Transfer Tax Rebate

First time home buyers of a newly constructed or resale home or condominium are eligible for a rebate. You (or your spouse) must be at least 18 years of age and never owned an interest in a house (since becoming spouses - spouses include a common-law spouse), and plan to occupy the home as a principal residence no later than 9 months from closing.

 

If since becoming spouses, both spouses do not own a home, but one spouse owned a house which was sold prior to marriage, the remaining 1st time home buyer spouse may claim the total available refund.

 

A maximum rebate of $2,000 can be claimed which is the equivalent to the Provincial LTT payable on the purchase of a $227,500 home (net of GST). This rebate is instantly available on closing for eligible parties.

City of Toronto Land Transfer Tax (TLTT)

The City of Toronto Land Transfer Tax for residential properties is calculated as follows:

• 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 $400,000, plus
• 2% of the amount of the purchase price above $400,000

City of Toronto Land Transfer Tax (TLTT) Rebate

First time home buyers of newly constructed or resale homes are eligible for a rebate of the TLTT. Eligibility requirements for the rebate mirror those of the Provincial Land Transfer Tax rebate program.

 

The maximum TLTT rebated is $3,750, which is the equivalent of the TLTT payable on the purchase of a $400,000 home.