Ontario Land Transfer Tax Rebate: Save up to $4,000

Quick Facts

Maximum Rebate: $4,000 — fully offsets LTT on homes priced up to $368,333.
Toronto Buyers: Stack this with the $4,475 Municipal LTT rebate for $8,475 combined relief.
How it's claimed: Electronically by your lawyer on closing day via Teraview — no paperwork required from you.

What is the Ontario Land Transfer Tax?

Every time a property changes hands in Ontario, the buyer pays a Land Transfer Tax (LTT) to the provincial government. The LTT is calculated on a sliding scale: 0.5% on the first $55,000, 1.0% on amounts up to $250,000, 1.5% on amounts up to $400,000, and 2.0% on amounts above $400,000 (with an additional tier for residential properties over $2 million). On a $750,000 home, the provincial LTT would be approximately $11,475 before any rebate.

Who Qualifies for the $4,000 Rebate?

The Ontario First-Time Home Buyer LTT Refund is available to buyers who meet all of the following criteria at the time of closing:

Age: You must be at least 18 years of age.
Citizenship: You must be a Canadian citizen or a permanent resident of Canada.
First-Time Status: You must not have previously owned an eligible home anywhere in the world, at any time. (This applies globally — a previously owned home in another country disqualifies you.)
Spousal Status: If you are purchasing with a spouse or common-law partner, neither of you may have owned a home while being each other's spouse or partner.
Occupancy: You must occupy the home as your principal residence no later than 9 months after the date of closing.

Note on the spouse rule: If your spouse previously owned a home before your relationship began, you as an individual may still qualify for a partial rebate. Your lawyer can calculate the proportional amount based on your percentage interest in the property.

How Much Will You Actually Save?

The refund eliminates the LTT entirely for homes priced at or below approximately $368,333. For higher-priced homes — which represent the vast majority of Ontario transactions — the full $4,000 is applied as a credit against the total LTT owing. On the $750,000 example above (total LTT of $11,475), a first-time buyer would pay $7,475 net — still a meaningful reduction in closing costs.

How to Claim It

No separate application is required from the buyer. Your real estate lawyer will submit the refund claim electronically through the Teraview land registration system as part of the standard closing process. You will be asked to sign a declaration confirming your first-time buyer status, and your lawyer will apply the credit directly against your land transfer tax owing on closing day. The refund does not arrive separately — it reduces what you owe in real time at closing.

Official Source: Ontario Ministry of Finance — LTT Refund for First-Time Home Buyers

Frequently Asked Questions

How much is the Ontario Land Transfer Tax rebate for first-time buyers?

Ontario's Provincial Land Transfer Tax First-Time Home Buyer Rebate is a maximum of $4,000, applied as a credit against the LTT owing at closing. It completely eliminates the provincial LTT on homes priced at or below approximately $368,333. For higher-priced homes — which represents virtually all active Ontario markets in 2026 — the full $4,000 is applied as a credit against your LTT owing. The rebate is claimed electronically by your real estate lawyer through the Teraview system on closing day; you do not submit a separate application.

Do I qualify for the Ontario LTT rebate if my spouse previously owned a home?

If your spouse or common-law partner previously owned an eligible home anywhere in the world at any time while being your spouse or partner, you as a couple do not qualify for the full Ontario LTT rebate. However, if you are purchasing the home in your name only, or if your spouse's prior ownership predates your relationship, a partial rebate may be available — calculated proportionally based on your percentage ownership interest in the property. Your real estate lawyer will determine the exact rebate amount based on your specific circumstances and will claim the appropriate amount at closing.

How long do I have to move into the property to keep the Ontario LTT rebate?

The Ontario LTT First-Time Home Buyer Rebate requires you to occupy the home as your principal place of residence no later than 9 months after the date of closing. If you fail to occupy within this window — for example, on a pre-construction purchase where you rent the unit out for more than 9 months after final closing — you may be required to repay the rebate plus interest to the Ministry of Finance. On pre-construction purchases with an interim occupancy phase, the 9-month clock begins at final closing (title transfer), not at the start of interim occupancy.

Is there a land transfer tax rebate in Toronto for first-time buyers?

Yes. Toronto is the only city in Ontario with its own Municipal Land Transfer Tax (MLTT), and it also offers a first-time buyer rebate of up to $4,475. Toronto buyers can stack both the Provincial LTT rebate ($4,000) and the Municipal LTT rebate ($4,475) for a combined maximum savings of $8,475 at closing. The MLTT rebate must be applied for within 18 months of the property's registration date — it does not apply automatically and requires a separate declaration. Your Toronto real estate lawyer should handle both rebate claims as part of the standard closing process.