Land Transfer Tax Rebate for First-Time Buyers Canada

Land transfer taxes are one of the biggest closing costs — but first-time buyers in Ontario and BC get significant rebates. Here are the exact numbers by province.

Land Transfer Tax by Province — Overview

Province	Has LTT?	First-Time Buyer Rebate
Ontario	Yes	Up to $4,000 (provincial) + $4,475 (Toronto municipal)
British Columbia	Yes (PTT)	First $500K exempt on homes under $835K
Quebec	Yes (welcome tax)	No first-time buyer exemption
Manitoba	Yes	Up to $4,500 for qualifying buyers
New Brunswick	Yes (0.5%)	No specific first-time buyer rebate
Nova Scotia	Yes (1.5%)	No first-time buyer rebate (provincial)
PEI	Yes (1%)	No first-time buyer rebate
Alberta	No	N/A — no LTT
Saskatchewan	No	N/A — no LTT
Newfoundland	No	N/A — no LTT

Ontario LTT Rebate — Full Details

Ontario's provincial Land Transfer Tax uses a tiered rate structure. The maximum first-time buyer rebate is $4,000, which effectively means buyers pay zero provincial LTT on purchase prices up to approximately $368,000. For higher purchase prices, the rebate reduces but does not eliminate the LTT.

Ontario LTT rates: 0.5% on first $55,000; 1.0% on $55,001–$250,000; 1.5% on $250,001–$400,000; 2.0% on $400,001–$2,000,000; 2.5% on amounts above $2,000,000 (residential with more than one registered owner).

To qualify for the Ontario rebate, you must be a Canadian citizen or permanent resident, at least 18, intend to occupy as principal residence within 9 months, and never have owned an eligible home previously anywhere in the world.

Toronto Municipal LTT Rebate

The City of Toronto charges a separate municipal Land Transfer Tax in addition to Ontario's provincial tax. Toronto first-time buyers receive a rebate of up to $4,475 on the municipal LTT. The rebate covers the full municipal LTT on purchase prices up to approximately $400,000. For higher prices, a partial rebate applies. Your lawyer applies this automatically at closing alongside the provincial rebate.

Ontario LTT Rebate by Purchase Price

Purchase Price	Ontario LTT	FTHB Rebate	LTT After Rebate
$300,000	$2,975	$2,975 (full)	$0
$500,000	$6,475	$4,000	$2,475
$700,000	$10,475	$4,000	$6,475
$900,000	$14,475	$4,000	$10,475

BC Property Transfer Tax Exemption

BC's Property Transfer Tax (PTT) is 1% on the first $200,000 and 2% on $200,001 to $2,000,000. For a $700,000 home, the standard PTT is $12,000. Under the first-time buyer exemption, the first $500,000 is fully exempt, meaning you only pay PTT on the $200,000 above $500,000 — approximately $4,000 — instead of the full $12,000. That's an $8,000 saving.

The exemption applies to homes priced up to $835,000. Above this threshold, the full PTT applies with no exemption. BC's eligibility rules are strict: you must never have owned an interest in a principal residence anywhere in the world (not just Canada).

Manitoba LTT Rebate

Manitoba charges Land Transfer Tax and offers a rebate to first-time buyers of up to $4,500 on newly constructed homes. The rebate is applied at registration. Eligibility requires occupancy as principal residence. Check Manitoba's current eligibility thresholds at the time of purchase, as they are adjusted periodically.

How the Rebate Is Applied — Practical Process

In Ontario and BC, the land transfer tax rebate is applied automatically at closing by your lawyer or notary. You do not need to apply separately or file additional forms after the fact. Your closing statement will show the gross LTT owing and the first-time buyer rebate credited, resulting in the net amount payable (if any). Ensure you tell your lawyer you are a first-time buyer well in advance of closing so they can confirm your eligibility and prepare the appropriate documentation.