The Land Transfer Tax Calculator. It works for all provinces and cities in Canada, so you could call it a “property transfer tax calculator” if you lived in BC or a “land title transfer fee calculator” if you were a prairie kid. It also works for big city folk too,
because it calculates both provincial and municipal (applicable only in Toronto) land transfer taxes when necessary.
Here’s what the calculator looks like when it’s calculating the land transfer tax for a first-time homebuyer’s purchase of a $300,000 condo in Toronto.
Land transfer tax rebates in Ontario
For first-time homebuyers, there is a maximum $2,000 tax rebate on the Ontario land transfer tax. Based on Ontario’s land transfer tax rates, this rebate will cover the full tax for homes up to $227,500. For homes purchased for more than $227,500, buyers will receive the full $2,000 rebate and pay the remaining LTT balance.
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- You must be 18 years or older.
- You must occupy the home within 9 months of purchase.
- Your spouse cannot have owned a home while being your spouse (but may be a previous homeowner).
- If the home is newly constructed, it must be eligible for home warranty.
- Homebuyers must apply for the refund within 18 months of purchase.
Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $227,500. For homes with purchase prices over $227,500, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.
Taxpayers can claim an immediate refund when registering the land transfer and paying the tax. Forms are available for homebuyers registering electronically or on paper.
If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. The application information required includes:
- A completed Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes.
- A copy of the registered land transfer deed.
- A copy of the Agreement of Purchase and Sale.
- A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.
Land transfer tax rebates in Toronto
First-time homebuyers in who live in the City of Toronto can qualify for a rebate equal to the full amount of their municipal land transfer tax, up to a maximum of $3,725. You can also qualify for the Ontario rebate in addition to the Toronto rebate
To qualify for the Toronto Municipal Land Transfer Tax Rebate for First-Time Purchasers, you must meet the following criteria:
- You must be 18 years of age,
- You must live in the home within 9 months of purchasing it,
- You cannot have owned a home before, and
- If you have a spouse, they cannot have owned a home during the time they have been your spouse.
Based on the Toronto land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $400,000. For homes with purchase prices over $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.
If you qualify, your real estate lawyer will claim the rebate electronically through Teraview when he/she registers your transfer/deed. For more information, visit the Municipal Land Transfer Tax Rebate website.