Ontario First-Time Home Buyers' Tax Credit 2025

Ontario First-Time Home Buyers' Tax Credit

$1,500

Maximum provincial tax credit for eligible first-time buyers

What Is the Ontario First-Time Home Buyers' Tax Credit?

Ontario's First-Time Home Buyers' Tax Credit (also called the HBTC for Ontario) is a non-refundable provincial income tax credit for first-time homebuyers. It was introduced to help offset some of the costs associated with purchasing your first home — things like legal fees, home inspection costs, and land transfer tax.

The credit is worth 10% of a maximum qualifying amount of $100 — providing up to $1,000 in federal credit (Home Buyers' Amount) and a separate Ontario provincial credit that brings the total value to approximately $1,500 in combined tax savings.

Federal + Ontario Combined First-Time Buyer Credits

First-time homebuyers in Ontario can claim both the federal and provincial credits on the same purchase:

Federal Home Buyers' Amount

Up to $1,500

Claim $100 on Line 31270 of federal return. Worth ~15% × $100 = $1,500 in federal tax savings.

Ontario Home Buyers' Tax Credit

Up to $750

Claim the same $100 qualifying amount on your Ontario return. Worth ~5.05% × $100 = ~$505 in provincial savings.

Combined value: approximately $1,500–$2,000 in total federal + Ontario tax savings.

Refundable or not? The federal Home Buyers' Amount is non-refundable — it can only reduce federal tax owing to zero, not generate a refund. Same for the Ontario credit. You must have enough tax payable to benefit from the full credit.

Ontario Land Transfer Tax Rebate (Additional $4,000)

In addition to the tax credit, Ontario first-time buyers may receive a Land Transfer Tax (LTT) rebate of up to $4,000. This is separate from the income tax credit and is applied at the time of purchase (at the land registry office).

Ontario LTT Rebate	Details
Maximum rebate	$4,000
Homes qualifying for full rebate	Homes up to $368,000
Partial rebate	Prorated for homes above $368,000
Who applies	Your real estate lawyer, on your behalf, at closing

If you purchase in Toronto, the City of Toronto also charges a municipal LTT, and first-time buyers are eligible for an additional Toronto LTT rebate of up to $4,475.

Full First-Time Buyer Savings Summary for Ontario (2025)

Program	Max Benefit	When Received
Federal Home Buyers' Amount tax credit	~$1,500	Tax return
Ontario provincial tax credit	~$505	Tax return
Ontario Land Transfer Tax Rebate	$4,000	At closing
Toronto LTT Rebate (Toronto only)	$4,475	At closing
FHSA (tax deduction on savings)	Up to 40% of $40K = $16,000	Annual tax returns
RRSP Home Buyers' Plan	$60,000 (tax-free withdrawal)	Before purchase

Frequently Asked Questions

How do I claim the Ontario first-time home buyers' credit?

On your federal return, enter $100 on Line 31270 (Home Buyers' Amount). The provincial credit is automatically calculated from this when you file your Ontario return. Make sure your tax software or preparer is aware you purchased a qualifying home during the year.

What makes someone a "first-time buyer" for the credit?

You (and your spouse/common-law partner) cannot have lived in a home you owned in the year of purchase OR in any of the 4 preceding calendar years. This "4-year reset" rule means some people who previously owned homes can qualify again as first-time buyers.

Can couples share the Ontario home buyers' credit?

Yes. The combined $100 qualifying amount can be split between two eligible first-time buyers (e.g., $5,000 each). Both individuals must be first-time buyers and must be Canadian residents. Splitting allows both partners to use the credit against their own tax payable.

Does the credit apply to new builds and resale homes?

Yes. The Home Buyers' Amount (and Ontario equivalent) applies to both new construction and resale homes, as long as it's a qualifying home in Canada that you intend to occupy as your principal residence within a year of purchase.

Is the Ontario Land Transfer Tax Rebate the same as the tax credit?

No. The Ontario Land Transfer Tax Rebate (up to $4,000) is a separate program from the income tax credit. The LTT rebate is applied at your real estate lawyer's office when you close on your home. The income tax credit is claimed on your annual tax return.