First-time buyers may be eligible for a rebate of the provincial and municipal (Toronto) land transfer taxes, to a maximum of $4,000 of the payable provincial land transfer tax and $4,475 of the payable municipal land transfer tax (Toronto), respectively. For more details on first-time buyer rebate rules and eligibility, visit the Ministry of Finance web site (provincial LTT) and the City of Toronto web site (municipal LTT).
The Ontario Land Transfer Tax (LTT) is a tax charged on the acquisition of real estate in Ontario, whereas the Toronto Land Transfer Tax (TLTT) is an extra tax assessed on top of the Ontario LTT for the purchase of real estate in the city of Toronto. The TLTT is computed as a percentage of the purchase price of the property, and the tax rate changes based on the property’s value.
The Toronto Land Transfer Tax (TLTT) is more expensive than the Ontario Land Transfer Tax (LTT) because to the higher housing values in Toronto compared to other regions in Ontario, which means the TLTT applies to more valuable properties. In addition, the TLTT was created to assist the City of Toronto in raising income to fund services including public transportation, housing, and infrastructure.