First-time buyer land transfer tax rebates in Toronto

First-time buyers in Toronto can get back up to $4,000 of Ontario land transfer tax and up to $4,475 of Toronto’s municipal tax. That is $8,475 in total. Your lawyer normally claims both at closing, so the money never leaves your pocket, but you can also apply afterward.

Two separate rebates, two sets of rules

Ontario and the City of Toronto each charge a land transfer tax on a Toronto home. Each has its own first-time buyer rebate, its own form and its own office. The conditions are close to identical, and one lawyer usually handles both in the same closing.

Ontario’s maximum is $4,000 for registrations on or after January 1, 2017. Toronto’s is $4,475. If you’re curious what the tax would be before any rebate, the land transfer tax calculator and the Toronto MLTT calculator show both figures.

Who qualifies

Ontario and Toronto ask for the same core things. You must be at least 18. You must never have owned a home, or any interest in one, anywhere in the world. And you must move into the home as your principal residence within nine months of closing.

You also need to be a Canadian citizen or permanent resident. Toronto adds a small allowance: you can become one within 18 months of the transfer and still qualify. Ontario’s page states the citizenship or residency condition for agreements after November 14, 2016.

Spouses matter. If you’re married or in a spousal relationship, your spouse can’t have owned a home while they were your spouse. Ontario says that if your spouse did, neither of you gets a refund.

The way you acquire the home doesn’t change the test on the Ontario side. A purchase, a gift or an inheritance can all count as the transfer. Toronto’s rebate applies to new and resale residential property, and it excludes commercial, industrial and multi-residential property.

What disqualifies you

Ownership anywhere in the world, at any time, ends eligibility. A condo you inherited abroad or a share in a family property counts as an interest in a home. So does a home you owned years ago and sold.

A spouse with past ownership during the marriage also rules you out. So does a home you don’t move into within nine months, for example one bought purely to rent out. And a buyer who is neither a citizen nor a permanent resident, and doesn’t become one within the allowed period, won’t qualify for the Toronto rebate.

Buying with someone who isn’t a first-time buyer doesn’t cancel everything. Ontario says the refund is proportional in that case, so you receive the share that belongs to the qualifying buyer. Ask your lawyer how the split works for your purchase.

How your lawyer claims it at closing

This is the easy route. On an electronic registration, the lawyer completes the required statements in the electronic land transfer tax affidavit. On a paper registration, they file the Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes at the Land Registry Office.

For Toronto, the lawyer can claim the rebate at registration if you meet every condition, with no separate application at first. The tax is then reduced on the closing statement. Your lawyer needs your honest answers, so tell them about any past ownership, even a small interest.

Documents to have ready

At closing your lawyer will ask for identification and proof of status. If you claim after closing, Toronto asks for a specific set of papers:

• The completed rebate application and supplementary information form
• The registered transfer or deed and the purchase agreement
• Proof of Canadian citizenship or permanent residence
• Proof that you occupy the home, such as a telephone or cable bill or a driver’s licence

Toronto says utility bills and property tax bills don’t count as proof of occupancy. Keep copies of everything you send.

Refunds after closing

Missed the claim? You have 18 months from the registration date, for both governments.

Ontario lets you apply through the Ministry of Finance online portal, with no login needed, or by email, fax or mail. Toronto takes applications by mail at City of Toronto Revenue Services, MLTT, 5100 Yonge St., Lower Level, Toronto, ON M2N 5V7, or by email at [email protected]. The City states that a processing fee applies to refunds, so a claim at closing is cheaper and faster.

Also use this route if you became a citizen or permanent resident after closing, or if you moved in after your lawyer had already filed. Check the current form on each site before sending.

Worked example, a $750,000 home

The bands are the same for both taxes: 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000 and 2% to $2 million.

The arithmetic runs as follows. The first $55,000 costs $275, and the next $195,000 at 1% costs $1,950. Then $150,000 at 1.5% adds $2,250. The last $350,000, taxed at 2%, adds $7,000. Together that is $11,475 in Ontario tax, and the same $11,475 in Toronto tax.

After the rebates, Ontario drops to $7,475 and Toronto to $7,000. You pay $14,475 in total instead of $22,950, a saving of $8,475.

Worked example, a $1,000,000 home

Same bands, larger top slice. The first $400,000 costs $4,475, as above. The remaining $600,000 at 2% costs $12,000. Each tax comes to $16,475.

With the rebates, Ontario falls to $12,475 and Toronto to $12,000. The total is $24,475 instead of $32,950. The saving is again $8,475, because both rebates are flat maximums and the tax on either price is well above them.

Notice what that means for a bigger purchase. The rebate doesn’t grow with the price, so it covers a shrinking share of the bill. Budget for the remainder, along with legal fees and adjustments, using the closing costs calculator. If a mortgage is part of the plan, the mortgage calculator helps with the monthly side. For your own numbers, try the Down Payment calculator, or browse the tax calculators.

Sources

• Ontario, land transfer tax refunds for first-time homebuyers
• City of Toronto, MLTT rebate opportunities
• City of Toronto, Municipal Land Transfer Tax

Common questions

Last reviewed: July 30, 2026. Figures come from the official sources listed above. How we check the numbers and our editorial policy.