A first-time buyer who qualifies for both first-time buyer rebates purchases an $800,000 home in the City of Toronto. What is the total land transfer tax payable after both rebates?
Correct Answer
D) $16,475
Provincial LTT on $800,000 is $4,475 + 2% × $400,000 = $12,475, and Toronto's MLTT uses the same brackets, so it is also $12,475. The Ontario refund is up to $4,000 and the Toronto rebate is up to $4,475, so the total is $24,950 − $4,000 − $4,475 = $16,475.
Why This Is the Correct Answer
Two taxes of $12,475 each ($24,950), less the $4,000 Ontario refund and the $4,475 Toronto rebate, leaves $16,475.
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A buyer who is not a first-time buyer purchases a $500,000 residential property in Ontario, outside Toronto. What is the provincial Land Transfer Tax payable?
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