A first-time home buyer in Toronto purchases a $500,000 condominium. Which land transfer taxes apply to this transaction?
Correct Answer
C) Both Ontario and Toronto Municipal Land Transfer Taxes
In Toronto, buyers pay both the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. While first-time buyers may qualify for rebates on both taxes, they are still initially assessed both taxes before any rebates are applied.
Why This Is the Correct Answer
In Toronto, property buyers are subject to both the Ontario Land Transfer Tax (provincial) and the Toronto Municipal Land Transfer Tax (municipal). These are two separate tax obligations that apply concurrently to all property purchases within Toronto's boundaries. While first-time buyers may qualify for rebates on both taxes, the taxes are still initially assessed and calculated before any rebates are applied to reduce the final amount owing.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
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Previous Question
A first-time buyer purchases a $450,000 home in Ontario outside the City of Toronto and qualifies for the provincial first-time refund. What land transfer tax is payable after the refund?
Next Question
A first-time home buyer signs an agreement in May 2026 to buy a newly built home in Ontario from a builder for $450,000 before tax, to live in as a primary residence. If all conditions are met, what is the most HST that can be rebated under the federal and Ontario rebates combined?