First-time home buyers a $4,000 land transfer tax rebate. The change, which takes effect on Jan. 1, 2017, means first-time buyers will not pay land transfer tax on the first $386,000 of the cost of their homes. For many this will mean no land transfer tax on the purchase for their first home. Under the land transfer tax break, more than half of first-time home buyers won’t have to pay land transfer tax at all — although those in Toronto will still face the city’s levy implemented in 2008.
To fund the breaks, the government will increase land transfer rates on houses that cost more than $2 million. For every dollar over and above that, the rate will rise from 2% to 2.5%. But the tax on the portion of the purchase price between $400,000 and $2 million will remain at 2%. The rate between $250,000 and $400,000 stay at 1.5% and between $55,000 and $250,000 at 1%. The first $55,000 of a purchase price will remain at 0.5% land transfer tax. Those changes only affect properties with one or two single-family residences.