Land Transfer Tax Refund
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.
To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home, anywhere in the world while he or she was your spouse. Previous ownership in a home means you do not qualify for the land transfer tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.
You cannot re qualify as a first time homebuyer. This rule may be different from other federal programs for first time homebuyers (e.g., the Canada Revenue Agency Home Buyers’ Plan).
General
Land transfer tax applies to all conveyances of land in Ontario. First time homebuyers may be eligible for a refund of all or part of the tax payable.
- For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
- For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
Qualifying taxpayers may claim an immediate refund at time of registration as follows:
- if registering electronically, by completing the required statements under the Explanation tab of the electronic land transfer tax affidavit, or
- if registering by paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First Time Purchasers of Eligible Homes form at the Land Registry Office.