Toronto Land Transfer Tax Rebate: How?

First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes.

Provincial Land Transfer Tax
• Provincial land transfer tax is payable anywhere in Ontario (including Toronto).
• The maximum provincial land transfer tax first- time buyer rebate is $2,000 (equivalent to the provincial land transfer tax payable on a $227,500 property).

Provincial Land Transfer Tax Calculations
• 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

Toronto Land Transfer Tax
• Toronto land transfer tax is payable only for properties in the City of Toronto.
• The maximum Toronto land transfer tax first-time buyer rebate is $3,725 (equivalent to the Toronto land transfer tax payable on a $400,000 property).
• Toronto land transfer tax rebates are in addition to any provincial land transfer tax rebate that the buyer qualifies for.

Toronto Land Transfer Tax Calculations
• 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

First-Time Buyer Eligibility
• 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 conveyance or disposition.
• The purchaser cannot have 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, nor had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case NO refund is available to either spouse.

Example: First-Time Home Buyers Purchase a $450,000 Property in Toronto:

Provincial Land Transfer Tax Calculations on a $450,000 Property
• 0.5% on amount up to and including $55,000 = $275
• 1.0% on amount between $55,000 and $250,00 =$1,950
• 1.5% on amount between $250,000 and $400,000 =$2,250
• 2% on the amount above $400,000 ($50,000 x 2%) =$1,000

Total Provincial Land Transfer Tax =$5,475
Minus First-Time Home Buyers Rebate (Maximum $2,000) -$2,000
Owed Provincial Land Transfer Tax =$3,475

Toronto Land Transfer Tax Calculations on a $450,000 Property
• 0.5% on the amount up to and including $55,000 =$275
• 1% on the amount between $55,000 and $400,000 =$3,450
• 2% on the amount above $400,000 ($100,000 x 2%) =$1,000

Total Toronto Land Transfer Tax =$5,725
Minus First-Time Home Buyers Rebate (Maximum $3,725) -$2,725
Owed Toronto Land Transfer Tax =$3,000

Total Land Transfer Tax Owed Provincial and Toronto =$6,475,

E.&O.E

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