Toronto refunds up to $4,475 of the municipal land transfer tax to first-time buyers. Ontario adds a refund of up to $4,000 on its own tax. At a price of $400,000 or less, the City’s rebate wipes out the municipal tax completely, and above that it covers a shrinking share.
The dollar cap is fixed, while home prices keep rising. So the rebate matters most on a modest condo and least on a detached house.
How much the rebate is worth
The City’s page says the first-time purchase rebate is up to $4,475, and it applies to new and resale homes. That figure equals the whole municipal tax on a $400,000 purchase: $275 on the first $55,000, $1,950 on the next $195,000 and $2,250 on the next $150,000.
The provincial refund is up to $4,000. On a $400,000 home the provincial tax is also $4,475, so a first-time buyer still pays $475 to Ontario. Ontario’s maximum refund has been $4,000 since 2017.
Who qualifies
Both the City and the province set similar conditions. You must be at least 18 and a Canadian citizen or permanent resident. You cannot have owned a home, or an interest in one, anywhere in the world. If you have a spouse, they cannot have owned a home while married to you. And you must live in the home as your principal residence within nine months of the purchase.
That last rule catches people who buy to rent out. A first-time buyer who never moves in doesn’t qualify.
A foreign national can’t claim either rebate, because both require citizenship or permanent residence. Foreign buyers also owe Ontario’s 25% speculation tax, plus Toronto’s 10% tax, which are separate from these rebates.
A worked example at $750,000
Take a $750,000 condo. The municipal tax is $275 plus $1,950 plus $2,250 plus $7,000 on the last $350,000 at 2%, a total of $11,475. The provincial tax is the same figure, $11,475.
After the rebates, Toronto’s tax is $11,475 minus $4,475, which is $7,000. Ontario’s is $11,475 minus $4,000, which is $7,475. Together that comes to $14,475 instead of $22,950, a saving of $8,475.
Try your own price in the Toronto land transfer tax calculator or the land transfer tax calculator.
What higher prices do
At $1 million, each tax is $16,475. After the rebates, Toronto’s share is $12,000 and Ontario’s is $12,475, so the buyer pays $24,475 instead of $32,950. The rebate is the same $8,475 in dollars, but it is now about a quarter of the bill, not a third.
The City’s higher rate bands, which started on April 1, 2026, begin above $3 million. They don’t change the maths for a typical first-time purchase.
A note on spouses and joint buyers
Couples should read the spouse rule carefully. If one partner has owned a home before, even abroad and even years ago, the other partner’s claim can fail while they are married. Check the status of each person going on title before the offer, not on closing day, because the answer decides if the budget should hold $7,000 or $11,475 of municipal tax at $750,000.
How to claim
You can claim at registration, through the lawyer, who fills in the statements on the electronic system. Or you can apply afterwards. For Ontario, the application goes through the Ministry of Finance portal or by mail, fax or email. The City’s rebate page says applications must reach it within 18 months of the transfer date, and Ontario sets the same 18 months.
Claiming at closing is usually easier, because the tax is reduced before you pay it. A buyer who waits has to fund the full tax first. Set aside the cost in your closing budget, and see the closing costs calculator for legal fees and other amounts. See also the Ontario NRST calculator, and the full set of real estate calculators.
Sources
- City of Toronto, MLTT rebate opportunities
- City of Toronto, MLTT rates and fees
- Ontario, land transfer tax refunds for first-time homebuyers
Common questions
How much is Toronto's first-time buyer rebate?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.