If you are buying your first home in Ontario, the land transfer tax rebate can put up to $4,000 back in your pocket, and up to $8,475 if you buy in the City of Toronto. It lowers the cash you need on closing day, and your lawyer applies it for you at closing. Here is exactly how it works and who is eligible.

What is the Ontario land transfer tax?

When you buy a property in Ontario, you pay a one-time provincial land transfer tax (LTT) based on the purchase price. It is calculated on a sliding scale, so a higher price means a higher tax. This is a closing cost, separate from your down payment, and it is due on your closing day.

If you buy in the City of Toronto, there is a second layer: a municipal land transfer tax on top of the provincial one. In practice, Toronto buyers pay roughly double the land transfer tax that buyers elsewhere in Ontario pay, before any rebate.

How much is the first-time buyer land transfer tax rebate?

The rebate is designed to offset that tax for people buying their first home. There are two separate rebates, and if you buy in Toronto you can claim both.

Ontario vs Toronto first-time buyer LTT rebate

  • Ontario (provincial). Maximum amount: Up to $4,000; What it covers: Fully covers the provincial LTT on homes up to about $368,000; partial rebate above that
  • City of Toronto (municipal). Maximum amount: Up to $4,475; What it covers: Applies only if the home is in Toronto; fully covers the municipal LTT up to a similar price point
  • Combined (Toronto buyers). Maximum amount: Up to $8,475; What it covers: Provincial plus municipal rebate stacked together

Source: Zown Realty, Ontario 2026

The Ontario rebate is worth up to $4,000. Because of how the tax scale works, that $4,000 fully covers the provincial land transfer tax on a home priced up to about $368,000. If your home costs more than that, you still get the full $4,000, but it will not wipe out the entire tax, so you pay the difference.

$8,475

the maximum land transfer tax a first-time buyer can get back when buying in the City of Toronto

Outside Toronto, only the provincial rebate applies, so the most you can get back is $4,000.

Who is eligible for the rebate?

To claim the first-time buyer land transfer tax rebate in Ontario, you generally need to meet a few conditions:

  • You must be at least 18 years old.
  • You must be a Canadian citizen or permanent resident.
  • You must occupy the home as your principal residence, typically within a set period after closing.
  • You cannot have owned a home anywhere in the world, at any time.
  • Your spouse cannot have owned a home anywhere in the world while they were your spouse.

That last point matters for couples. If your partner owned a home while you were together, it can affect how much of the rebate you can claim, even if you personally have never owned. If you are unsure how your situation is treated, ask your real estate lawyer before closing.

For a fuller picture of the programs first-time buyers can stack, see our guide to first-time home buyer incentives in Ontario.

How and when is the rebate applied?

You do not usually pay the full tax first and wait for a cheque later. In most purchases, your real estate lawyer claims the rebate electronically when the property changes hands, so it is applied right at closing.

That means the rebate directly reduces the land transfer tax line on your closing statement. Instead of budgeting the full tax and then hoping for a refund, you simply pay the reduced amount (or nothing, if the rebate covers it all).

If for some reason the rebate is not applied at closing, you can typically apply afterward to get the money back, but the cleaner path is to make sure your lawyer handles it on closing day. Confirm this with them ahead of time.

Why the rebate matters for your cash at closing

Closing costs are the extra money you need on closing day beyond your down payment, and land transfer tax is often the biggest single item. Lowering it means you need less cash to close.

Think of the rebate as freeing up money you would otherwise have handed over in tax. That cash can stay in your savings for other closing costs, like legal fees and title insurance, or for the expenses that come right after you move in.

This is also where a Down Payment Boost from Zown can help. It is cash back of up to 1.25% of the purchase price, to a maximum of $25,000, paid into your savings at closing. Most buyers use it toward closing costs and post-closing expenses, so it stacks with the land transfer tax rebate to ease the cash crunch on closing day.

For more ways to bring down the upfront cost, see our guides to down payment assistance in Ontario and the minimum down payment in Ontario.

See what your Down Payment Boost adds up to →

Last updated July 24, 2026. General information, not legal or financial advice.