Ontario Land Transfer Tax Rebate
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.
To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.
You cannot re‑qualify as a first‑time homebuyer. This rule may be different from other federal programs for first‑time homebuyers (e.g., the Canada Revenue Agency Home Buyers' Plan).
Qualifying taxpayers may claim an immediate refund at time of registration as follows:
if registering electronically, by completing the required statements under the Explanation tab of the electronic land transfer tax affidavit, or
if registering by paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First‑Time Purchasers of Eligible Homes form at the Land Registry Office.
If the refund is claimed at the time of registration, it may offset the land transfer tax that would be payable. If the refund is not claimed at registration, the tax must be paid, and a claim for the refund may be submitted to the Ministry of Finance. No interest is paid on this refund. Procedures for refunds are outlined below, under Procedures to apply for the refund.
Refund Amounts And Limitations
For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000.
Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.
Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.
The refund will be reduced if one (or more) of the purchasers is not a first‑time homebuyer. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.
Toronto Land Transfer Tax Rebate
The first-time home purchase rebate applies to:
resale residential properties
The rebate does not apply to:
commercial, industrial or multi-residential properties
For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, and a rebate of up to $4,475.00. The definition of a first-time purchaser includes all of the above, and:
the purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate
Land Transfer Tax Calculator
Click HERE to use the Land Transfer Tax calculator.