How this tax is calculated
The Ontario land transfer tax (LTT) is a marginal tax and each portion of
your home’s value is taxed at a unique rate.
These tax rates are as follows:
| Purchase Price of Home |
Marginal Tax Rate |
| First $55,000 |
0.5% |
| $55,000.01 to $250,000.00 |
1.0% |
| $250,000.01 to $400,000.00 |
1.5% |
| $400,000.01 to $2,000,000.00 |
2.0% |
| Over $2,000,000 |
2.5% |
Ontario land transfer tax rebate
For first time home buyers, there is a maximum $4,000 tax rebate on the
Ontario land transfer tax. Based on Ontario’s land transfer tax rates, this
refund will cover the full tax for homes up to $368,000. For homes purchased
for more than $368,000, buyers will receive the full $4,000 rebate and pay
the remaining LTT balance.
The following table contains several example calculations of the Ontario land
transfer tax rebate:
| Purchase price of home |
Land title transfer tax |
First-time home buyer rebate |
Net tax payable |
| $100,000 |
$725 |
$725 |
$0 |
| $200,000 |
$1,725 |
$1,725 |
$0 |
| $227,500 |
$2,000 |
$2,000 |
$0 |
| $600,000 |
$8,475 |
$4,000 |
$4,475 |
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 9 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.
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