In Ontario, what is the current land transfer tax rate for a property purchased for $500,000 by a first-time buyer?
Correct Answer
D) $6,475 plus applicable rebates
Ontario's land transfer tax on a $500,000 property would be $6,475 before rebates. First-time buyers are eligible for a rebate of up to $4,000, significantly reducing their tax burden. The tax is calculated on a graduated scale with different rates for different value ranges.
Why This Is the Correct Answer
Option D is correct because Ontario's land transfer tax on a $500,000 property is calculated using a graduated scale, resulting in $6,475 before any rebates. First-time home buyers are eligible for rebates (up to $4,000 provincial rebate plus potential municipal rebates in Toronto), which significantly reduces the final amount owed. The phrase 'plus applicable rebates' accurately reflects that rebates are available to reduce this base amount.
Why the Other Options Are Wrong
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A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
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A first-time buyer purchases a $400,000 home in Ontario outside the City of Toronto and qualifies for the provincial first-time refund. How much land transfer tax is payable after the refund?