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Land Transfer 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.

FIRST-TIME BUYERS 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 of GST).
  • 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:
**Purchase Price Calculation of LTT
$0 to $55,000 .005 x purchase price
$55,001 to $250,000 (.01 x purchase price) minus 275
$250,001 to $400,000 (residential)
$250,001 plus (business)
(.015 x purchase price) minus 1525
$400,001 plus (residential only) (.02 x purchase price) minus 3525
** 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

Province Expands Provincial Land Transfer Tax Rebate

December 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.


  • First-time 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 have concerns.
  • 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 details of Toronto Land Transfer Tax.

More Information

Further information is available by calling:

Ministry of Finance
Land Transfer Tax Section


Ministry of Finance
General Inquiry





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