Land Transfer Tax Rebate

 

1.  What is the Land Transfer Tax Rebate?

The Land Transfer Tax Rebate is another tax credit available to first time homebuyers in Ontario, British Columbia, and Prince Edward Island. Each province has its own rules about who is eligible to claim the land transfer tax rebate. The amount of the rebate depends on which province you live in, the value of the home, and whether one or both buyers has owned a home before. First-time homebuyers in the city of Toronto can also get a rebate of up to $3,725 on the municipal land transfer tax as long as they meet the necessary criteria.

 

2.  How each province and city’s rebate works?

Region

Ontario Toronto

Maximum rebate

$4,000

$3,725

Rebate will cover LTT to a maximum home value of

$368,250

$400,000

Partial refund available? 50% refund if spouse does not qualify

50% refund if spouse does not qualify

 

▶ Ontario Land Transfer Tax Rebate

First-time homebuyers in Ontario can qualify for a rebate equal to the full amount of their land transfer tax, up to a maximum of $4,000.

Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $368,250. For homes with purchase prices over $368,250, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

 

▶ Toronto Land Transfer Tax Rebate

First-time homebuyers in who live in the City of Toronto can qualify for a rebate equal to the full amount of their municipal land transfer tax, up to a maximum of $3,725. You can also qualify for the Ontario rebate in addition to the Toronto rebate.

Based on the Toronto land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $400,000. For homes with purchase prices over $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

 

If you’d like to calculate the Land Transfer Tax Rebate, please visit  http://ycteam.ca/calculator/

 

3.  Who is eligible to claim the Land Transfer Tax Rebate?

  • The buyer must be older than 18 years
  • The buyer must live in the home within 9 months of purchase
  • The buyer cannot have owned a home before
  • The buyer’s spouse cannot have owned a home while being your spouse
  • If you are purchasing a new home, it must be eligible for home warranty

 

4.  How to apply for the Land Transfer Tax Rebate?

Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.

▶ Requirement documents

  • A completed Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible homes.
  • A copy of the registered land transfer deed.
  • A copy of the agreement of purchase and sale.
  • A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.

 

5.  Additional information for the Land Transfer Tax Rebate.

Beginning January 1, 2017, eligibility for the first-time home buyers refund program is restricted to Canadian citizens and permanent residents of Canada. However, there is an exception to Land Transfer Tax Rebate. Purchaser who signed the agreement of purchase and sale before November 14, 2016, would remain eligible for the refund regardless of citizenship or residency status. Upon obtaining Canadian citizenship or permanent resident status, these purchasers may apply for the refund within the 18 month period following registration of the conveyance or the date the unregistered disposition occurs.

 

 

“Land Transfer Tax Rebate .” Ratehub, < https://www.ratehub.ca/land-transfer-tax-rebate >. Accessed 15 Aug. 2017.

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