Land Transfer Taxes (LTT) are provincial taxes levied on the exchange of real estate, and are the responsibility of the purchaser. Usually the LTT is a percentage of the property value.  All provinces have a land transfer tax except Alberta and Saskatchewan (who instead levy a much smaller fee). Note that Ontario, Toronto, B.C. and PEI there are LTT rebates for first time homeowners. Also, keep in mind that Toronto is an exception as it charges an additional municipal tax (see Toronto section for additional information).

Ontario

In Ontario, the land transfer tax is levied on the amount paid for the home.  The current rates are:

  • 0.5% of the first $55 000
  • 1% of $55 001 – $250 000
  • 1.5% of $250 001 – $400 000
  • 2% of any portion over $400 000

The Ontario Land Tax Rebate is equal to the full value of the land transfer tax up to a maximum of $2,000.  Eligibility:

  • The buyer must be older than 18 years
  • The buyer must occupy the home within nine months of purchase
  • The buyer must occupy the home within nine months of purchase
  • The buyer cannot have owned a home anywhere in the world
  • The buyer’s spouse cannot have owned a home while being your spouse
  • If you are purchasing a new home, it must be eligible for home warranty

Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227 500. For houses over $227 500, home buyers will receive the maximum $2000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home.

Toronto

If you are purchasing a home in Toronto there is an additional land transfer tax.  The tax applies within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border, and Lake Ontario as the South border.

The current LTT rates in Toronto are:

  • 0.5% of the first $55 000
  • 1% of 55,001 – $400 000
  • 2% of any portion over $400 000

First time homebuyers in Toronto are eligible to receive a full refund up to a maximum of $3 725.  Eligibility:

The buyer must be older than 18 years

  • The buyer must occupy the home within nine months of purchase
  • The buyer cannot have owned a home anywhere in the world
  • The buyer’s spouse cannot have owned a home while being your spouse
  • If you are purchasing a new home, it must be eligible for home warranty

Based on Toronto land transfer tax rates, first-time homebuyers with homes of $400 000 or less will avoid the Toronto portion of the tax altogether.