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Real Estate Knowledge Center:
Tax (LTT) Rebate Program
First-time home buyers who purchase
a newly constructed home will receive a rebate of the Land Transfer Tax
(LTT). All other buyers will continue to pay the full applicable tax. The
maximum LTT rebate is $2,000.
The 1996 Ontario Budget announced
a special one-year provision to the LTT that was renewed every year and
is now a permanent program.
who purchase a NEWLY CONSTRUCTED HOME will receive a rebate of the
LTT. All other buyers will continue to pay the full applicable tax.
- The maximum rebate is $2000.
If an individual owns less than 100% interest in the newly-built home,
the amount of the rebate would be reduced and calculated according to
the amount of interest in the home.
- A rebate of $2,000
is equivalent to the LTT payable on a purchase price of $227,500 (net
- Only individuals who are at
least 18 years of age, have not (or spouse) previously owned an interest
in a home anywhere qualify for the rebate.
- Individuals who
have received an Ontario Home Ownership Savings Plan (OHOSP) based refund
of the LTT do not qualify.
A real estate transfer tax is
assessed on real property when ownership of the property is transferred
from one party to another. The tax is a percentage of the value of the property
based on a graduated scale:
- .5% on amounts
up to and including $55,000;
- +1.0% on the amount exceeding
$55,000 up to and including $250,000;
- +1.5% on amounts
above $250,000 up to and including $400,000 for residential / +1.5% on
the amount in excess of $250,000 for business properties;
- +2.0% of the amount in excess
of $400,000. [residential only]
|These four portions
added up together total the LTT payable. A simple formula is as follows:
||Calculation of LTT
|$0 to $55,000
||.005 x purchase price
|$55,001 to $250,000
||(.01 x purchase price) minus
|$250,001 to $400,000 (residential)
$250,001 plus (business)
|(.015 x purchase price)
|$400,001 plus (residential
||(.02 x purchase price) minus
If the purchase price falls within this range, then apply the appropriate
formula to the purchase price. For example on a $200,000 property, the
LTT calculation would be [(.01 x $200,000) minus 275 = $1725].
For more information call the
Ontario Finance Ministry at 1-800-263-7965 or access through www.gov.on.ca
Expands Provincial Land Transfer Tax Rebate
13, 2007 --
The provincial government has announced that it is expanding the PROVINCIAL
land transfer tax rebate for first-time buyers to include re-sale housing,
something which REALTORS® have lobbied for.
buyers of BOTH re-sale, and newly constructed homes, will be
eligible for a rebate of the provincial land transfer tax of up to $2,000.
- Effective for first-time buyers who enter into Agreements of Purchase
and Sale AFTER December 13, 2007.
- This change is being implemented by provincial legislation introduced
on December 13, 2007. The Ministry of Finance has indicated that, until
the legislation is passed, first-time buyers of re-sale properties eligible
for the rebate can submit their applications for the refund and they will
be processed once the legislation has passed. It is not known when the
legislation will be passed. Buyers can consult with their lawyers if they
- The provincial
land transfer tax rebate applies in all Ontario municipalities. In Toronto,
the provincial rebate is in addition to City
rebates of the
Toronto Land Transfer Tax. See
of Toronto Land Transfer Tax.
information is available by calling:
Land Transfer Tax Section
to users: Although Ilenna Tai and Propertytoronto.com endeavour to ensure the accuracy and
timeliness of information, it is not guaranteed. Ilenna Tai and Propertytoronto.com accept no
responsibility for any loss arising from any use or reliance on
the information contained herein.
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