Do First-Time Buyers Pay Land Transfer Tax in Ontario?

It's one of the most common questions new buyers ask: do first-time buyers pay land transfer tax in Ontario? The short answer is yes — but you also get rebates that can erase the tax entirely on a modestly priced home. Here's exactly how the rebates work, who qualifies, and how much you'll actually pay.

Key takeaways

• First-time buyers do pay land transfer tax, but qualify for rebates that reduce or erase it.
• The provincial rebate is up to $4,000; Toronto adds a municipal rebate of up to $4,475.
• On lower-priced homes, the rebates can eliminate the tax entirely.
• To qualify you must be a first-time buyer and meet residency and age conditions.
• HOMEH's Cashback Rebate, the industry's highest, stacks on top of any rebate you claim.

The short answer

Yes — there is no blanket exemption from land transfer tax for first-time buyers in Ontario. Everyone is charged the provincial Land Transfer Tax on the standard sliding scale, and Toronto buyers also pay the municipal tax. What's different for first-time buyers is the rebate: money returned to offset the tax, which on a lower-priced home can cancel it out completely.

Learn how the tax itself is calculated in how land transfer tax is calculated, and the full cost picture in closing costs in Ontario explained.

How much is the rebate?

There are two separate rebates. The provincial one applies everywhere in Ontario; the municipal one applies only in the City of Toronto, on top of the provincial rebate.

More detail is in our dedicated land transfer tax rebate guide.

What the rebate means in real dollars

Because the rebates are capped, they fully cover the tax on lower-priced homes and only partly cover it as prices climb. Here's the provincial tax before and after the $4,000 rebate at a few price points:

Get the exact figure for your price and city with the HOMEH Closing Cost Calculator.

Who counts as a first-time buyer?

To claim the rebate you generally must be at least 18, intend to occupy the home as your principal residence soon after closing, and never have owned a home anywhere in the world (and, for spouses, your spouse must not have owned one during your marriage). The home must usually be a qualifying purchase. Always confirm the current conditions with the official Ontario source before relying on the rebate.

It's applied at closing

Your lawyer can typically apply the rebate directly at closing so you pay the reduced amount, rather than paying in full and claiming it back later.

Stack the rebate with HOMEH cashback

The rebate reduces your tax; HOMEH cashback puts money back in your pocket on top of it. Eligible buyers receive the industry's highest Cashback Rebate — which can cover whatever land transfer tax the rebate doesn't, plus the rest of your closing costs. Estimate yours with the cashback calculator. Avoid the usual pitfalls with closing cost mistakes to avoid.