First-Time Home Buyer Land Transfer Tax Rebates Across Canada

Land Transfer Tax – also commonly referred to as the Property Transfer Tax, Real Property Transfer Tax or Welcome Tax depending upon where you reside within Canada – was introduced in most provinces during the 1970s (Ontario and Quebec) and 1980s (British Columbia). It was a source of revenue for municipalities, who are forbidden from taxing such things as income, sales, etc. It’s paid to the province (and the municipality, in Toronto) by the buyer of a property. 

In some provinces – Ontario, British Columbia and Prince Edward Island – and the City of Toronto, first-time home buyers are eligible for a refund of all or part of the Land Transfer Tax. See: Everything You Need to Know About the Land Transfer Tax

Key Takeaways

• Land Transfer Tax Rebates are available for first-time home buyers in three provinces and one municipality
• Eligible first-time home buyers are eligible for a refund of all or part of the Land Transfer Tax paid when purchasing a property
• Find out the requirements for claiming a Land Transfer Tax Rebate and whether you’re eligible in your province

Important: For qualified first-time home buyers, Land Transfer Tax rebates are available in Ontario, British Columbia and Prince Edward Island. In addition, Toronto has its own rebate program.

Tip: A partial land transfer tax refund may also be granted to first-time home buyers, so be sure to apply for your applicable program(s).

Ontario Land Transfer Tax Refund

To claim the Land Transfer Tax Refund in Ontario:

• At least 18 years old
• Have not previously owned a home or interest in a home anywhere in the world
• Your spouse has not owned a home or interest in a home anywhere in the world while he/she was your spouse
• Occupy the home as your principal residence no later than nine months after the date of conveyance or disposition
• Canadian citizen or permanent resident of Canada (If you become a Canadian citizen or permanent resident within 18 months, you may also apply for the refund)
• Purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs

Toronto Municipal Land Transfer Tax Rebate

To claim the Municipal Land Transfer Tax Rebate in Toronto:

• Can be claimed even if you receive an Ontario Land Transfer Tax Refund
• At least 18 years old
• Have not previously owned a home or interest in a home anywhere in the world
• Your spouse has not owned a home or interest in a home anywhere in the world while he/she was your spouse
• Occupy the home as your principal residence no later than nine months after the date of conveyance or disposition
• Canadian citizen or permanent resident of Canada (If you become a Canadian citizen or permanent resident within 18 months, you may also apply for the refund)
• Purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs

British Columbia Property Transfer Tax Refund

To claim the Property Tax Refund in British Columbia:

• Canadian citizen or permanent resident of Canada (If you become a Canadian citizen or permanent resident within 18 months, you may also apply for the refund)
• Lived in BC for 12 consecutive months immediately before the date you register the property or filed at least two income tax returns as a BC resident in the last six years
• Have not previously owned a principal residence or interest in a principal residence anywhere in the world
• Have never received a first-time home buyers’ exemption or refund

Prince Edward Island Real Property Transfer Tax Exemption

To claim the Real Property Transfer Tax Exemption in Prince Edward Island: 

• At least 18 years old
• Canadian citizen or permanent resident of Canada (If you become a Canadian citizen or permanent resident within 18 months, you may also apply for the refund)
• Lived in PEI for six consecutive months immediately before the date you register the property or filed at least two income tax returns as a PEI resident in the last six years
• Have not previously owned a principal residence or interest in a principal residence anywhere in the world
• Have never obtained a first-time home buyers’ exemption

Other articles in this guide: “First-Time Home Buyer Mortgage Guide”

• What is the First-Time Home Buyers’ Tax Credit?
• What is the RRSP Home Buyers’ Plan (HBP)?
• First-Time Home Buyer Programs in Canada
• First-Time Home Buyer Grants in Canada
• First-Time Home Buyer Loans in Canada
• Who Can Benefit From the Home Buyers’ Tax Credit (HBTC)?