What is the current land transfer tax rate for a first-time home buyer purchasing a $600,000 home in Ontario?
Correct Answer
B) $4,475
Ontario first-time home buyers receive a rebate of up to $4,000 on provincial land transfer tax. The total provincial LTT on a $600,000 home would be $8,475, minus the $4,000 rebate equals $4,475. The rebate applies to the provincial portion only, not any municipal land transfer tax.
Why This Is the Correct Answer
For a $600,000 home in Ontario, the provincial land transfer tax is $8,475. First-time home buyers receive a rebate of up to $4,000 on the provincial portion only. Therefore, the net land transfer tax payable is $8,475 - $4,000 = $4,475. The rebate reduces but does not eliminate the tax obligation for homes above certain thresholds.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
- → Which of the following best describes when land transfer tax is typically paid?
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