What Is Land Transfer Tax, and Do First-Time Buyers Get a Rebate?

Land transfer tax is a one-time tax you pay to the province when you buy property in Ontario, and it catches a lot of first-time buyers off guard because it is due at closing, on top of your down payment.

The good news: if this is genuinely your first home, Ontario refunds up to $4,000 of that tax automatically. That means homes priced at $368,000 or less have their entire provincial land transfer tax wiped out. Above that price, you still get the full $4,000 knocked off your bill.

If you are buying inside the City of Toronto specifically, there is a second, separate municipal land transfer tax, and first-time buyers can get an additional rebate of up to $4,475 on that one too. Outside Toronto, in Whitby, Ajax, Pickering, and the rest of Durham Region, you only pay the provincial tax, no municipal layer.

Your lawyer usually applies the rebate automatically when they register the deed, but it is worth confirming before closing day so there are no surprises on your final statement of adjustments.

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