| Portion of the price | Ontario rate | Toronto rate |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2 million | 2.0% | 2.0% |
| Over $2 million | 2.5% | 2.5% up to $3 million; higher rates above |
Rates as published by Ontario and the City of Toronto.
On a $1.2 million home, each tax comes to $20,475, or $40,950 combined. After both first-time buyer rebates, the total drops to $32,475.
Do you qualify as a first-time buyer? For both rebates (Ontario's and Toronto's), you must be at least 18; never have owned a home, or any interest in one, anywhere in the world; move in as your principal residence within nine months of closing; and be a Canadian citizen or permanent resident (or become one within 18 months).
Two rules catch couples out:
- If your spouse owned a home while you were together, neither of you gets the Ontario refund, however you split the title.
- If your partner owned a home before you were together, the refund is prorated to the first-time buyer's share of ownership. That's why lawyers often register title as 99% to the true first-time buyer and 1% to the partner who has owned before. You won't get the full rebate, but you'll get close to it.
A 99/1 split isn't just paperwork. It affects who owns what if the relationship ends or one of you passes away, so talk it through with your lawyer before closing. Your lawyer usually claims both rebates when the sale is registered, so they come off the bill on closing day.
One more: the federal Home Buyers' Amount. First-time buyers can also claim the federal Home Buyers' Amount on their tax return: a $10,000 credit worth up to $1,500 in tax savings.
Christian's take: This is another one buyers often forget, or don't know about. Take every tax saving you can!
