What is land transfer tax?

In Ontario, if you acquire a piece of land (including a house or condo) or a beneficial interest in a piece of land, you are required to pay land transfer taxes to the provincial government. There is an additional municipal land transfer tax levied by the City of Toronto.

Land transfer tax in Ontario, as elsewhere in Canada, is always paid by the buyer.

Is there a land transfer tax rebate in Ontario?

There is a land transfer tax rebate in Ontario of up to $4,000 that is available to first-time home buyers. Eligible buyers will have their entire land transfer tax bill up to $4,000 refunded to them. If the land transfer tax bill is higher than $4,000, the buyer must make up the difference.

First-time home buyer eligibility in Ontario

• You must be a Canadian citizen or permanent resident of Canada.
• You must be 18 years or older.
• You must occupy the home within nine months of purchase.
• You cannot have owned a home or interest in a home anywhere in the world.
• Your spouse cannot have owned a home while being your spouse (but may be a previous home owner).
• If the home is newly constructed, it must be eligible for home warranty.
• Home buyers must apply for the refund within 18 months of purchase.