First-Time Buyer Land Transfer Tax Rebate in Ontario

Land transfer tax is usually the single largest closing cost when you buy a home in Ontario — but first-time buyers get a meaningful break. You can claim a provincial rebate of up to $4,000, and Toronto buyers can claim an additional municipal rebate of up to $4,475. Here's how the rebates work, what they're worth, and how to claim them.

Key takeaways

• First-time buyers can claim up to $4,000 off the Ontario provincial land transfer tax.
• Toronto first-time buyers can claim an additional municipal rebate of up to $4,475.
• Combined, Toronto first-time buyers can save up to $8,475 at closing.
• The rebate is applied through your real estate lawyer at closing — no waiting for a cheque.
• Land transfer tax is calculated on a marginal sliding scale by purchase price.

How land transfer tax works in Ontario

Ontario charges a provincial Land Transfer Tax (LTT) on every home purchase, calculated on a marginal sliding scale — meaning each portion of the price is taxed at its own rate. If you buy in the City of Toronto, you pay a second, municipal land transfer tax on top, roughly doubling the cost.

Want a precise figure including the Toronto tax? Use the closing cost calculator.

The provincial rebate (up to $4,000)

Eligible first-time buyers can claim a rebate of up to $4,000 on the provincial land transfer tax. At current rates, that effectively eliminates the provincial LTT on a home priced up to roughly $368,000, and reduces it on more expensive homes.

How $4,000 plays out

If your provincial LTT is less than $4,000, the rebate covers it entirely and you pay no provincial land transfer tax. If it's more, you pay the difference.

The Toronto municipal rebate (up to $4,475)

Buying within the City of Toronto means a second land transfer tax — the Municipal Land Transfer Tax (MLTT) — which mirrors the provincial rates up to $3M. First-time buyers can claim an additional municipal rebate of up to $4,475, stacking with the provincial rebate.

For the mechanics of the Toronto tax itself, see our guide to the Toronto municipal land transfer tax.

What the rebate is worth — a real example

Consider a $500,000 home. A Toronto buyer would pay roughly $6,475 in provincial LTT plus about $6,475 in municipal LTT before rebates — around $12,950 total. As a first-time buyer, the rebates knock off up to $8,475.

See how this fits into your overall budget in closing costs in Ontario explained.

How to claim the rebate

In most cases your real estate lawyer applies the rebate electronically at closing, so it's deducted from what you owe rather than refunded later. To qualify you generally must be at least 18, intend to occupy the home as your principal residence, and not have owned a home (and, depending on the rule, your spouse must not have owned one during your relationship). Always confirm the current eligibility rules.

For the full first-time buyer journey — down payment, programs and more — start with our first-time home buyer guide for Ontario and the roundup of first-time home buyer programs in Canada.

Save even more with HOMEH cashback

The LTT rebate trims your closing costs — and HOMEH goes further. Eligible buyers receive the industry's highest Cashback Rebate, which can cover your remaining land transfer tax many times over. Estimate yours with the cashback calculator or budget the rest with the closing cost calculator.