The land transfer tax is one of the largest closing costs when purchasing a home in Ontario. However, first-time home buyers may qualify for significant rebates that can save thousands of dollars.
Ontario Land Transfer Tax Rebate for First-Time Buyers
First-time home buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax. This rebate fully covers the land transfer tax on the first $368,000 of a home's purchase price.
Eligibility Requirements
To qualify for the Ontario first-time home buyer LTT rebate, you must meet ALL of the following criteria:
- You must be at least 18 years of age
- You must be a Canadian citizen or permanent resident
- You must occupy the home as your principal residence within 9 months of purchase
- You cannot have previously owned a home or had an interest in a home anywhere in the world
- Your spouse cannot have owned a home while being your spouse
Toronto Municipal Land Transfer Tax Rebate
If you are purchasing a home in the City of Toronto, you pay an additional municipal land transfer tax on top of the provincial one. First-time buyers in Toronto can receive up to $4,475 in municipal LTT rebate.
Total First-Time Buyer Savings in Toronto
If buying in Toronto, first-time buyers can receive up to $8,475 in combined rebates ($4,000 provincial + $4,475 Toronto municipal). This is a significant savings on your home purchase.
How the Ontario Land Transfer Tax Is Calculated
| Purchase Price Portion | Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Use our land transfer tax calculator to estimate your exact tax amount and potential rebate.
Land Transfer Tax Examples for Mississauga
Since Mississauga does not have a municipal land transfer tax (unlike Toronto), buyers only pay the provincial LTT:
| Purchase Price | Provincial LTT | First-Time Buyer Rebate | Net LTT Payable |
|---|---|---|---|
| $500,000 | $6,475 | $4,000 | $2,475 |
| $700,000 | $10,475 | $4,000 | $6,475 |
| $900,000 | $14,475 | $4,000 | $10,475 |
| $1,000,000 | $16,475 | $4,000 | $12,475 |
How to Claim the Land Transfer Tax Rebate
- Your real estate lawyer will typically handle the rebate claim at closing
- You will sign an affidavit confirming your first-time buyer status
- The rebate is applied directly, reducing your closing costs
- If you miss claiming at closing, you can apply to the Ministry of Finance within 18 months
Non-Resident Speculation Tax (NRST)
Non-resident or foreign buyers in Ontario are subject to an additional 25% Non-Resident Speculation Tax. Some exemptions and rebates may apply — consult a real estate lawyer for details.
Frequently Asked Questions
No. Only the City of Toronto has a municipal land transfer tax. If you are buying in Mississauga, you only pay the Ontario provincial land transfer tax, making it more affordable than buying in Toronto.
Both buyers must qualify as first-time home buyers. If one spouse has previously owned a home, the rebate will be proportionally reduced based on ownership interest.
Yes. The first-time home buyer LTT rebate applies to all types of residential property including condominiums, townhouses, detached homes, and semi-detached homes.
Need Help With Your Home Purchase?
Lacerda Real Estate guides first-time home buyers in Mississauga through every step of the process, including understanding land transfer tax rebates. Contact us today.