A first-time buyer who qualifies for both first-time buyer rebates purchases a $600,000 home in the City of Toronto. What is the combined land transfer tax payable after both rebates?
Correct Answer
D) $8,475
Provincial LTT on $600,000 is $4,475 + 2% × $200,000 = $8,475, and Toronto's MLTT is the same, $8,475. After the Ontario refund of $4,000 and the Toronto rebate of $4,475, the total payable is $16,950 − $8,475 = $8,475, about 1.41% of the price.
Why This Is the Correct Answer
$8,475 − $4,000 = $4,475 provincial, plus $8,475 − $4,475 = $4,000 municipal, equals $8,475 in total.
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