The Ontario Land Transfer Tax Rebate program enables first-time homebuyers to receive a rebate of a portion of the land transfer tax associated with buying their first home.
To qualify, a homebuyer must be at least 18 years of age; they cannot have owned a home or an interest in a home anywhere in the world; and
if the buyer has a spouse, their spouse cannot have owned a home or an interest in a home anywhere in world while they were the buyer’s spouse.
The rebate applies to both new construction homes as well as resale properties. The rebate can be claimed instantly by registering the claim at the time of the purchase.
The maximum rebate amount is $4,000.00, and the rebate will be reduced if one or more of the buyers do not qualify under the eligibility rules. For example, if you are purchasing the home with another person who does not qualify for the rebate, the maximum rebate amount will be halved, to $2,000.00.
The amount of land transfer tax payable increases along with the value of the property. If you qualify for the full amount of the rebate ($4,000), this means you will not pay land transfer tax on the first $368,000.00 of the home’s costs.
For properties located within Toronto, Municipal Land Transfer Tax is also payable, and there is a similar rebate program available for qualified buyers.