Ontario refunds up to $4,000 of provincial land transfer tax for eligible first-time home buyers, which wipes out the tax entirely on homes up to about $368,000. Toronto offers a separate rebate of up to $4,475 on its municipal tax, covering the full city tax on homes up to $400,000. A first-time buyer in Toronto can get up to $8,475 back in total.
Ontario rebate: who qualifies
- You're at least 18 years old
- You'll occupy the home as your principal residence within nine months of the purchase
- You've never owned a home, or an interest in a home, anywhere in the world
- Your spouse hasn't owned a home anywhere in the world while they were your spouse
- You're a Canadian citizen or permanent resident. The rebate isn't available to foreign nationals
Toronto rebate: who qualifies
The city's criteria are similar: you must be at least 18, occupy the home as your principal residence within nine months, and never have owned a home anywhere in the world. Your spouse can't have owned a home while being your spouse.
Buying with someone who isn't a first-time buyer? The rebate is reduced in proportion to the share owned by the eligible buyer. If you each own 50% and only one of you qualifies, you get half the rebate.
What the rebates cover
| Price | Ontario LTT | After Ontario rebate | Toronto total after both rebates |
|---|---|---|---|
| $350,000 | $3,725 | $0 | $0 |
| $500,000 | $6,475 | $2,475 | $4,475 |
| $750,000 | $11,475 | $7,475 | $14,475 |
| $1,000,000 | $16,475 | $12,475 | $24,475 |
How to claim
Most buyers claim at closing: your lawyer applies the rebate when registering the transfer, so you pay the reduced tax. If you didn't claim at closing, you can apply to the Ontario Ministry of Finance for a refund within 18 months of the transfer, and to the City of Toronto separately for the municipal rebate.
Other first-time buyer help
The federal First Home Savings Account lets you save up to $40,000 tax-free for your down payment. See our sister site, FHSA Guide.
Frequently asked questions
How much is the first-time buyer land transfer tax rebate in Ontario?
Up to $4,000 on the provincial tax, plus up to $4,475 on Toronto's municipal tax if you buy in the city.
Do I qualify if I owned a home outside Canada?
No. Both rebates require that you've never owned a home anywhere in the world.
Can I get the rebate on a new build?
Yes, if you meet the eligibility rules. It's claimed the same way, at closing.
Sources
- Ontario Ministry of Finance, Land transfer tax refunds for first-time homebuyers
- City of Toronto, Municipal Land Transfer Tax