A qualifying first-time home buyer purchases a $600,000 single-family home in Toronto as their principal residence. After the provincial refund and the Toronto rebate, how much land transfer tax is payable?
Correct Answer
C) $4,475 (provincial) + $4,000 (municipal) = $8,475 total
Provincial LTT on $600,000 is $275 + $1,950 + $2,250 + $4,000 (2% of $200,000) = $8,475, and the first-time refund of up to $4,000 leaves $4,475. Toronto's MLTT uses the same brackets, so it is also $8,475, and the first-time rebate of up to $4,475 leaves $4,000. Together the buyer pays $8,475.
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