A refund of land transfer tax, up to a maximum of $2,000, is available to first time purchasers of newly constructed homes.
Land Transfer Tax Calculation
The land transfer tax payable is calculated at a progressive rate on the value of the consideration (purchase price) paid for the home. Use the
following rates to calculate the amount of land transfer tax applicable to your purchase:
0.5% on the amount of the value of the consideration up to $55,000
1.0% on the amount of the value of the consideration from $55,000 to $250,000
1.5% on the amount of the value of the consideration from $250,000 to $400,000
2.0% on the amount of the value of the consideration over $400,000
Land Transfer Tax Refund Calculation
The Land Transfer Tax Refund is the amount of tax payable that is being claimed as a refund up to a maximum of $1,725 or $2,000. The first time
home purchaser may claim the full maximum amount or a proportion of the maximum refund amount.
For example:
cost of home = $100,000; land transfer tax payable =$725; land transfer tax refund = $725
cost of home = $200,000; land transfer tax payable =$1,725; land transfer tax refund = $1,725
cost of home = $300,000; land transfer tax payable =$2,975; land transfer tax refund = $1,725 or $2,000 (depending on when the agreement
of purchase and sale was entered into).
