What is Land Transfer Tax?

Land Transfer Tax is a provincial tax that is paid when a person acquires any property (land, buildings, structures and structures to be constructed).  This includes new home purchases (including upgrades) as well as resale homes. Land Transfer Tax is based on the amount paid for the property.  This tax will be paid when the transaction closes.

First time homebuyers

If you are a first time homebuyer, you may be eligible for a refund of all or part of the Land Transfer Tax. To claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home, and your spouse cannot have owned a home or interest in a home, while he or she was your spouse. Previous ownership in a home means you do not qualify for the Land Transfer Tax first-time homebuyers refund. The method of acquiring the home (e.g., purchase, gift or through an inheritance) is not relevant.

Beginning January 1, 2017, the maximum amount of the refund is $4,000. No land transfer tax would be payable by qualifying first time purchasers on the first $368,000 of the value of the consideration for eligible homes. First time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

Land Transfer Tax Calculator

Enter your purchase price, ensure the “city” is set to Ottawa, and press “Go”.  If you are a first time homebuyer, check the box.

Land Transfer Tax calculator by ratehub.ca