First-Time Home Buyer Land Transfer Tax Rebates Across Canada

First-Time Home Buyer Land Transfer Tax Rebates Across Canada

Table of contents

    Published 17/11/2020 12:11 EST

    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.

    Region

    Ontario

    Toronto

    British Columbia

    Prince Edward Island

    Maximum Refund

    $4,000

     

    $4,475

     

    $8,000

     

    $2,000

    Home Value Restrictions

    $368,000 minimum

    $400,000 maximum

    $500,000 maximum

    $200,000

    maximum

    👆 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
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