A first-time buyer who qualifies for both first-time rebates purchases an $800,000 home in the City of Toronto. What is the total land transfer tax payable after the Ontario refund and the Toronto rebate?
Correct Answer
D) $16,475
Ontario LTT on $800,000 is $12,475, and Toronto's MLTT is also $12,475. The Ontario first-time refund is capped at $4,000 and Toronto's first-time rebate at $4,475, so the buyer pays $8,475 + $8,000 = $16,475.
Why This Is the Correct Answer
Ontario tax: $275 + $1,950 + $2,250 + 2% of $400,000 ($8,000) = $12,475, reduced by the $4,000 maximum refund to $8,475. Toronto MLTT: the same $12,475, reduced by the $4,475 maximum rebate to $8,000. Total payable: $16,475.
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