Land Transfer Tax Rebate for First-Time Buyers (Ontario, Toronto, BC)

This article is general information, not tax advice. Rebate rules are set by provincial and municipal governments and are subject to change. Confirm your eligibility with your real estate lawyer before closing.

When you buy a home in most Canadian provinces, you owe land transfer tax — a one-time tax on the purchase price, due at closing. For first-time buyers, this is often a surprise: it is one of the largest closing costs, paid entirely in cash, and not rolled into the mortgage. The good news is that Ontario, Toronto, and British Columbia each offer meaningful rebates or exemptions for qualifying first-time buyers that can eliminate part or all of this cost.

Use the land transfer tax calculator to see the exact tax — and rebate — for any purchase in Ontario, Toronto, BC, Quebec, Montreal, or Manitoba before you get to closing.

Ontario: up to $4,000 back on provincial land transfer tax

Rebate amount: Up to $4,000 on the Ontario provincial land transfer tax.

Who qualifies:

• You are a Canadian citizen or permanent resident
• You are at least 18 years old
• You will occupy the home as your principal residence within 9 months of closing
• You have never previously owned a home anywhere in the world

The last requirement is the strictest: if you owned a home in another country, you do not qualify for the Ontario first-time buyer rebate. This differs from the federal FHSA and HBP first-time buyer definitions, which count prior ownership only in Canada.

Eligible homes: Both new and resale homes qualify. This distinguishes Ontario from some other programs that limit rebates to newly built homes only.

How the rebate works: Your lawyer claims the rebate on your behalf at the time of registration. You pay the full land transfer tax, and the rebate is immediately applied against it — effectively you pay the tax net of the rebate at closing. There is no application process for you; your lawyer handles it.

What the rebate covers: The Ontario LTT rebate of $4,000 eliminates the provincial tax entirely on homes priced at approximately $368,000 or below. For homes above that price, the rebate covers the first $4,000 of tax and you pay the remaining amount. The land transfer tax calculator shows the exact net tax after the rebate for any purchase price.

Source: Ontario Ministry of Finance, Land Transfer Tax Act.

Toronto: up to $4,475 additional municipal rebate

Toronto is the only municipality in Ontario that charges a second land transfer tax — the Municipal Land Transfer Tax (MLTT) — in addition to the provincial tax. For first-time buyers in Toronto, there is an additional MLTT rebate of up to $4,475.

Combined rebate in Toronto: Ontario $4,000 + Toronto $4,475 = up to $8,475 total in land transfer tax relief for qualifying first-time buyers in Toronto.

Toronto rebate eligibility: Similar to Ontario's rules. You must:

• Be a Canadian citizen or permanent resident
• Never have owned a home anywhere in the world
• Occupy the home as your principal residence within 9 months of closing

The same lawyer-at-registration process applies; you do not file separately.

Effective price at which Toronto first-time buyers pay no LTT: The combined Ontario + Toronto rebate eliminates the total land transfer tax on homes priced at approximately $400,000 or below (exact amount varies because the two taxes use slightly different bracket structures). At Toronto's median home price, both taxes apply on the excess above these thresholds — but the combined rebate meaningfully reduces what you owe.

Source: City of Toronto, Municipal Land Transfer Tax By-law.

British Columbia: full exemption for homes up to $835,000 (as of April 1, 2024)

BC's program is an exemption, not a rebate. You pay no property transfer tax on a qualifying first-home purchase, rather than paying and claiming back.

How the exemption works (updated April 1, 2024):

• Homes with a fair market value of $835,000 or less: full exemption on the tax on the first $500,000 of the purchase price
• Homes valued between $835,000 and $860,000: a partial exemption applies (it phases out)
• Homes above $860,000: no first-time buyer exemption applies; full property transfer tax is owed

Before April 1, 2024, the full exemption threshold was $500,000 and the partial threshold was $525,000. The 2024 update significantly expanded access in BC's higher-priced markets.

Eligibility in BC:

• Canadian citizen or permanent resident
• BC resident (one year continuously, or two income tax returns filed as BC resident in the prior six years)
• Never previously owned a registered property interest as a principal residence anywhere in the world
• Never previously used this BC exemption or received a refund under it
• The property is used only as your principal residence, is 0.5 hectares or less, and is residential

Occupancy requirement: You must move in within 92 days of registration and occupy the home as your principal residence through the first anniversary of registration.

How it is applied: Your notary or lawyer applies the exemption through the property transfer tax return at registration. You do not pay the tax and reclaim it — it is applied at the source.

Source: BC Government, Property Transfer Tax — First-Time Home Buyers' Program (effective April 1, 2024).

Other provinces

Most other Canadian provinces either charge no land transfer tax at all (Alberta, Saskatchewan) or have no first-time buyer rebate program on their existing tax. Manitoba charges a land transfer tax with no first-time buyer rebate; Quebec charges a "welcome tax" (taxe de bienvenue) with no provincial first-time buyer exemption, though some municipalities offer partial rebates for new construction. PEI and Nova Scotia have their own structures and rates, and their first-time buyer rules vary.

The land transfer tax calculator covers Ontario, Toronto, BC, Quebec, Montreal, and Manitoba, and accounts for first-time buyer rebates where they apply.

What the rebates do not cover

• The rebate does not apply to the portion of land transfer tax on purchase prices above the rebate threshold — you still pay the tax on the excess.
• If you have a spouse or partner who has previously owned a home, you may lose eligibility (both purchasers must qualify in Ontario and Toronto).
• Legal fees, title insurance, home inspection, CMHC PST (in Ontario), and other closing costs are not affected by these rebates.

How the rebate fits into your closing cost budget

Land transfer tax — net of any first-time buyer rebate — is typically the largest cash closing cost for Ontario and BC buyers. On a $700,000 purchase in Toronto, the combined Ontario + Toronto LTT before rebates is roughly $20,000–$22,000. After the combined $8,475 first-time buyer rebate (if you qualify), you're looking at approximately $11,500–$13,500 in LTT at closing.

For a full picture of what to bring to closing in Ontario, see Closing Costs in Ontario: A First-Time Buyer's Checklist.

Frequently asked questions

How much is the Ontario land transfer tax rebate for first-time buyers?

Up to $4,000 on the provincial land transfer tax. This eliminates the full provincial tax on homes priced at approximately $368,000 or below. For more expensive homes, the rebate offsets the first $4,000 of tax.

Do first-time buyers in Toronto get two rebates?

Yes. A qualifying Toronto first-time buyer receives the Ontario provincial LTT rebate of up to $4,000 and the City of Toronto MLTT rebate of up to $4,475, for a combined maximum of $8,475.

Can I get the Ontario rebate if I previously owned a home outside Canada?

No. The Ontario first-time buyer rebate requires that you have never owned a home anywhere in the world. Prior homeownership in another country disqualifies you.

When are rebates applied — before or after closing?

In Ontario and Toronto, your lawyer claims the rebate at registration; you effectively pay the net amount (after rebate) at closing. In BC, the exemption is applied at registration so no payment is made on the exempt portion. You do not file separately for any of these rebates — your real estate lawyer or notary handles it.

What is the BC first-time home buyer property transfer tax exemption threshold?

As of April 1, 2024, full exemption on the first $500,000 of purchase price for homes valued at $835,000 or less. Partial exemption for homes valued $835,000–$860,000. No exemption for homes above $860,000. Eligibility requires never having owned a principal residence anywhere in the world and never having previously received the BC exemption.