If you’re buying your first home in Toronto, there’s a real chance you’re leaving money on the table without knowing it. Between the municipal and provincial land transfer tax rebates, first-time buyers can get back up to $8,475 combined. Here’s exactly how it breaks down.
Two Separate Rebates, Not One
Toronto is the only city in Ontario that charges its own Municipal Land Transfer Tax (MLTT) on top of the province’s Land Transfer Tax. That means Toronto buyers pay two land transfer taxes on closing, but first-time buyers also qualify for two separate rebates, one from the city and one from the province.
Municipal rebate (City of Toronto): up to $4,475 off the Municipal Land Transfer Tax.
Provincial rebate (Government of Ontario): up to $4,000 off the provincial Land Transfer Tax, enough to fully eliminate the provincial tax on homes purchased for $368,000 or less.
Combined, that’s up to $8,475 back, applied automatically at closing in most cases.
Who Actually Qualifies
Both rebates use the same core eligibility rules:
- You must be at least 18 years old.
- You must move into the home as your principal residence within nine months of closing.
- You (and your spouse, if you have one) must never have owned a home anywhere in the world, at any time.
- You must be a Canadian citizen or permanent resident, or become one within 18 months of the transfer.
The rebate applies to both newly built and resale homes. It doesn’t apply to commercial, industrial, or multi-residential properties.
How You Actually Get It
In most cases, you don’t have to apply for anything separately. Your real estate lawyer claims the rebate for you during the electronic land registration process at closing, and it’s deducted directly from what you owe. If it’s missed for some reason, you can still apply for it after the fact through the Ontario Ministry of Finance’s online portal, but that has to happen within 18 months of your closing date.
Weighing this against renting, or curious what it actually costs to own in a specific pocket of the city? My Beaches cost-of-living breakdown and Riverside/South Riverdale guide walk through the real numbers.
Want the Exact Number for Your Purchase?
The rebate amount depends on your purchase price, and the tax itself is calculated on a sliding scale, so the exact number is different for every closing. I walk buyers through this as part of every purchase, happy to run the numbers for your specific situation. Book a free call and we’ll go through it together.
Frequently Asked Questions About the Toronto Land Transfer Tax Rebate
Can I avoid land transfer tax in Toronto entirely?
Not entirely, every buyer pays it. But as a first-time buyer, the combined municipal and provincial rebates can offset up to $8,475 of it, which fully covers the tax on many resale homes. There’s no legal way around the tax itself, but the rebate is the real, built-in relief for first-time buyers.
Is this the same as a property tax rebate?
No, and this is a common mix-up. Land transfer tax is a one-time cost paid at closing when you buy a home. Property tax is a separate, ongoing annual bill from the city. The rebate covered here only applies to the one-time land transfer tax, not your yearly property tax bill.
How much land transfer tax would I pay on a $500,000 property in Toronto?
Both the provincial and municipal tax are calculated on a rising scale based on price, so the combined total before any rebate runs into the thousands. As a first-time buyer, up to $8,475 of that gets rebated. For the exact number on a $500,000 purchase, use a land transfer tax calculator or ask your lawyer to run it against your specific closing, it only takes a minute and gives you a real figure to plan around.
Who is eligible for the rebate?
Anyone at least 18 years old who has never owned a home anywhere in the world (including your spouse, if you have one), who will live in the home as their principal residence within nine months of closing, and who is a Canadian citizen or permanent resident, or becomes one within 18 months of the purchase.
Rebate figures current as of the City of Toronto’s and Government of Ontario’s official pages, checked September 2026. Tax rules can change, always confirm your specific numbers with your real estate lawyer before closing.