Land Transfer Taxes & Tax Refunds (Toronto and Ontario)

Land Transfer Tax Refund for First-time Homebuyers

Ontario

http://www.rev.gov.on.ca/en/refund/newhome/index.html

Land Transfer Tax applies to all transfers of land in Ontario.

First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where: the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

Applications for a refund must be made within 18 months after the date of the transfer.

The maximum amount of the refund is $2,000. The refund can be requested at the sale or directly from the Ministry of Finance. No interest is paid on this refund.
(For Toronto, the maximum refund is $3,725.00)

http://www.toronto.ca/taxes/mltt.htm#rebates

To claim a refund, you:

• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of the date of transfer; and
• You and your spouse cannot have ever owned a home, or an interest in a home, anywhere in the world.

Ontario Land Transfer /Toronto (in bold) Formula

0.5% of the value of consideration for the transfer up to and including $55,000
1% of the value of the consideration which exceeds $55,000 up to and including $250,000 (to 400,000.00 for Toronto)
1.5% of the value of the consideration which exceeds $250,000* Only Ontario
2% of the amount by which the value of the consideration exceeds $400,000 (Toronto)

Example: House for $600,000 in Toronto would have the following transfer taxes

Toronto $7,725.00
Ontario $8,475.00
Total $16,200.00

Note: this is not intended as legal advice, please contact a lawyer for assistance with your residential purchase.

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