There are currently two types of Land Transfer Tax that apply to home sales in Ontario – Provincial and Municipal (only Toronto).
Provincial Land Transfer Tax applies to all new and re-sale home sales, and is the total of:
- 0.5% of the first $55,000
- plus 1.0% of the amount from $55,001 to $250,000
- plus 1.5% of the amount in excess of $250,001 to $400,000
- plus 2.0% of the amount in excess of $400,000
Municipal Land Transfer Tax applies to all new and re-sale home sales in Toronto, and is the total of:
Residential:
- 0.5% of the amount of the purchase price up to and including $55,000
- plus 1% of the amount of the purchase price between $55,000 and $400,000
- plus 2% of the amount of the purchase price above $400,000
Rebate for first time home buyers.
First time home buyers of new AND re-sale homes will receive arebate of the Toronto land transfer tax of up to $3,725 and arebate of the Provincial Land Transfer Tax of up to $2000.
Am I a first time home buyer?
To claim a refund:
- The purchaser must be at least 18 years of age.
- Application for the refund must be made within 18 months after the date of the conveyance or disposition.
- The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing.
- The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world.
- A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse.
How do I claim my LTT refund?
Your solicitor should have an affidavit for you to sign with the rest of your closing documents package prior to closing. The amount of your LTT payment will be offset by your refund amount immediately.
