Land Transfer Tax Refund for First-time Homebuyers
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)
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
Note: this is not intended as legal advice, please contact a lawyer for assistance with your residential purchase.