First-Time Buyer Land Transfer Tax Rebates in Canada (2026: ON, Toronto, BC, PEI)
Only Ontario ($4,000), Toronto ($4,475 more), BC (up to $8,000) and PEI (full exemption) give first-time buyers a land transfer tax break. Who qualifies.
Four jurisdictions reduce land transfer tax for first-time buyers: Ontario (refund up to $4,000), the City of Toronto (a further $4,475), British Columbia (no tax on the first $500,000 for homes up to $835,000, phasing out by $860,000) and Prince Edward Island (full exemption). Manitoba, Quebec, Nova Scotia, New Brunswick and the fee-only provinces offer nothing. Every program uses the strict test: you have never owned a home or an interest in one, anywhere in the world.
Figures come from the CostToClose land transfer tax calculator.
What each program is worth
| Jurisdiction | Relief | Fully offsets tax up to | Ends at |
|---|---|---|---|
| Ontario | Refund up to $4,000 | $368,000 | No price cap (refund is capped, not eligibility) |
| Toronto (additional) | Rebate up to $4,475 | $400,000 | No price cap |
| British Columbia | No tax on first $500,000 (max $8,000) | $500,000 | $835,000 full; $860,000 zero |
| Prince Edward Island | Full exemption | All prices | No cap |
| Manitoba, Quebec, NS, NB, AB, SK, NL, territories | None | — | — |
Sources: Ontario Ministry of Finance; City of Toronto; Government of BC; Government of PEI. Checked 14 September 2026.
Ontario and Toronto at common prices
| Price | Ontario tax | After Ontario refund | Toronto total (both taxes) | Toronto, after both rebates |
|---|---|---|---|---|
| $368,000 | $3,995 | $0 | $7,990 | $0 |
| $500,000 | $6,475 | $2,475 | $12,950 | $4,475 |
| $600,000 | $8,475 | $4,475 | $16,950 | $8,475 |
| $800,000 | $12,475 | $8,475 | $24,950 | $16,475 |
Figures computed using the CostToClose calculator. The refunds are fixed dollar caps, so their value in percentage terms shrinks as prices rise.
BC at common prices
| Price | Standard PTT | First-time buyer |
|---|---|---|
| $500,000 | $8,000 | $0 |
| $700,000 | $12,000 | $4,000 |
| $835,000 | $14,700 | $6,700 |
| $845,000 | $14,900 | $10,100 |
| $860,000 | $15,200 | $15,200 |
The BC exemption phases out over just $25,000 of price. A first-time buyer negotiating around $840,000 loses $320 of exemption for every $1,000 above $835,000.
Who qualifies: the tests that catch people
All four programs share the core requirements: at least 18, never owned a home or a share of one anywhere in the world, and the property becomes your principal residence within a set period (nine months in Ontario and Toronto, 92 days in BC). Additional conditions:
- Spouses. In Ontario and Toronto, if your spouse owned a home while they were your spouse, you both lose the refund. If they owned it before you became spouses, you can still claim your share.
- Citizenship. Ontario and BC require Canadian citizenship or permanent residence (Ontario allows 18 months to obtain it).
- BC residency. Lived in BC at least a year immediately before, or filed two BC tax returns in the last six years.
- PEI residency. Six months in PEI before closing or a PEI tax filer in two of the last six years.
- The four-year rule does not apply. The FHSA, Home Buyers' Plan and federal GST rebate treat you as a first-time buyer if you have not owned in the current and previous four calendar years. Land transfer rebates do not: once an owner, never eligible.
Worked example from the calculator
Two first-time buyers, $700,000, 10% down, comparing three cities:
| Metric | Toronto | Ottawa | Surrey, BC |
|---|---|---|---|
| Transfer tax before relief | $20,950 | $10,475 | $12,000 |
| Relief | −$8,475 | −$4,000 | −$8,000 |
| Tax on closing | $12,475 | $6,475 | $4,000 |
How to claim
Ontario and Toronto: your lawyer files the refund affidavit with the land transfer tax return at closing and you pay only the net amount. If it is missed, you can apply to the Ministry of Finance for a refund within 18 months. BC: claimed on the property transfer tax return at closing; you must keep living in the home for the first year or repay part of it. PEI: affidavit filed at closing.
Frequently asked questions
How much is the first-time home buyer land transfer tax rebate in Ontario?
Up to $4,000, which covers the full tax on homes up to $368,000. Toronto adds up to $4,475 on its municipal tax.
Does Alberta have a first-time buyer land transfer tax rebate?
Alberta has no land transfer tax, so there is nothing to rebate; buyers pay land titles registration fees only.
Can I get the rebate if I owned a home in another country?
No. Ontario, Toronto, BC and PEI all disqualify anyone who has owned a home anywhere in the world, regardless of how long ago.
Does Quebec have a first-time buyer welcome tax rebate?
Not provincially. Montréal and some other cities offer partial refunds through home-ownership assistance programs with their own eligibility rules.
What is the BC first-time home buyer exemption limit in 2026?
Full exemption on the first $500,000 for homes up to $835,000, phasing out completely at $860,000. Newly built homes have a separate exemption to $1.1 million for any buyer.
Sources
- Ontario Ministry of Finance, Land Transfer Tax Refunds for First-Time Homebuyers — checked 14 Sept 2026
- City of Toronto, Municipal Land Transfer Tax rebate for first-time purchasers — checked 14 Sept 2026
- Government of British Columbia, First Time Home Buyers' Program and Newly Built Home Exemption — checked 14 Sept 2026
- Government of Prince Edward Island, Real Property Transfer Tax first-time home buyers exemption — checked 14 Sept 2026
- Manitoba Finance, Land Transfer Tax (no exemption) — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.