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Ontario land transfer tax rebate in Ontario3

For first time home buyers, there is a maximum $4,000 tax rebate on the Ontario land transfer tax. Based on Ontario’s land transfer tax rates, this refund will cover the full tax for homes up to $368,333. For homes purchased for more than $368,333, buyers will receive the full $4,000 rebate and pay the remaining LTT balance.

For Example:

Purchase price of homeLand title transfer taxFirst-time home buyer rebateNet tax payable
$100,000$725$725$0
$200,000$1,725$1,725$0
$227,500$2,000$2,000$0
$600,000$8,475$4,000$4,475

First-time home buyer eligibility in Ontario

  • You must be a Canadian citizen or permanent resident of Canada.
  • You must be 18 years or older.
  • You must occupy the home within 9 months of purchase.
  • You cannot have owned a home or interest in a home anywhere in the world.
  • Your spouse cannot have owned a home while being your spouse (but may be a previous home owner).
  • If the home is newly constructed, it must be eligible for home warranty.
  • Home buyers must apply for the refund within 18 months of purchase.

Application

Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.

If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. Information required for the application include:

  • A completed Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible homes.
  • A copy of the registered land transfer deed.
  • A copy of the agreement of purchase and sale
  • A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.

References and Notes

  1. Calculating Land Transfer Tax, Ontario Ministry of Finance
  2. Calculating Land Transfer Tax, Ontario Ministry of Finance
  3. Land Transfer Tax Refunds for First-Time Homebuyers, Ontario Ministry of Finance