Land Transfer Tax & the First-Time Buyer Refund

When you buy property in Ontario, you pay land transfer tax on closing — a percentage of the purchase price. If you're a first-time buyer, you can often get most or all of it back.

How the tax is calculated

• 0.5% on the first $55,000
• 1.0% on the portion from $55,000 to $250,000
• 1.5% on the portion from $250,000 to $400,000
• 2.0% on the portion from $400,000 to $2,000,000
• 2.5% on the portion above $2,000,000, for one- or two-family homes

The first-time buyer refund

Ontario refunds up to $4,000 in land transfer tax for qualifying first-time buyers — enough to fully offset the tax on homes up to about $368,000, and partially offset it above that.

Do you qualify?

• You're at least 18 years old
• You'll occupy the home as your principal residence within nine months
• You've never owned a home anywhere, and neither has your spouse while being your spouse
• You apply for the refund within 18 months of closing