Land Transfer Tax FAQs

In order to qualify for the instant first time homebuyer rebates for the Ontario/Toronto Land Transfer Tax the following must apply:

If your spouse owns a property AFTER you were married then you are NOT a first time homebuyer because you have an interest in your spouse's property.

If your spouse sold the property BEFORE you were married then you ARE a first time homebuyer but your spouse is not.  You would qualify for 50% of the rebate if both you and your spouse were on title.  If you take the property in your own name then you would qualify for 100% of the rebate.

There is NO Land Transfer Tax payable if there is a transfer of ownership/title between spouses or common law partners who have been together for more than 3 years.

Land Transfer Tax IS applicable if there is a transfer of ownership/title between parent and child.  If the child is receiving the property as a gift then Land Transfer Tax is based on the amount of the outstanding balance of the mortgages/Lines of Credit.  IE: if the property is a gift and there is a balance of $200,000 on the mortgage then land transfer tax is based on $200,000 (if the property is located in Toronto then Toronto Land Transfer Tax is also applicable.  If the child is being added to title then Land Transfer Tax is based on the proportionate share of the property.  IE: if the child will be receiving a 50% interest in the property then they will be responsible for 50% of the Land Transfer Tax based on $100,000 NOT $200,000.

The Toronto Land Transfer Tax applies when you purchase a home within the city limits of Toronto, Ontario.  You should also note that Ontario Land Transfer Tax is also applicable.

The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Act (Act) deems the value of the consideration to be the fair market value of the land. 

On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a HST calculation, if the property purchased is a newly built home). The LTT is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

• 0.5% on the first $55,000 of the purchase price, plus;
• 1.0% on the amount exceeding $55,000 up to and including $250,000, plus;
• 1.5% on the amount exceeding $250,000 up to and including $400,000, plus;
• 2.0% on the amount over $400,000
• (Please note: non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price).

The tax is calculated on the value of the consideration for the transfer. The LTT is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

• 0.5% on the first $55,000 of the purchase price, plus;
• 1.0% on the amount exceeding $55,000 up to and including $400,000, plus;
• 2.0% on the amount over $400,000

If you are buying new from the builder, the Ontario Land Transfer Tax is calculated on a price which is net of the HST and therefore the Ontario Land Transfer Tax will be slightly less for a new home than for a resale home with the same purchase price.

If you are buying new from the builder in the city of Toronto, the Toronto Land Transfer Tax is calculated on a price which is net of the HST and therefore the Toronto Land Transfer Tax will be slightly less for a new home than for a resale home with the same price.

BUYING IN ONTARIO:  If you are a first time homebuyer you will qualify for up to $2,000.00 rebate in Ontario.  IE: if your Ontario Land Transfer Tax is $2,500.00 then you would qualify for the full $2,000.00 rebate and only pay $500.00.  If the Land Transfer Tax applicable was $1,800.00 you would qualify for a $1,800.00 rebate and you would pay $0.00.

BUYING IN TORONTO: If you are a first time homebuyer you will qualify for up to $3,750.00 rebate in Toronto.  IE: if your Toronto Land Transfer Tax is $2,500.00 then you would qualify for the full $2,500.00 rebate and only pay $0.00.  If the Land Transfer Tax applicable was $4,750.00 you would qualify for a $3,750.00 rebate and you would pay $1,000.00.

Only the buyer is responsible for paying the Land Transfer Tax.  The Seller does not pay Land Transfer Tax.