Are They Spouses? How the FTHB Rebate Is Calculated

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I get a lot of questions from Realtors about how the Land Transfer Tax (LTT) rebate applies when buyers are spouses.

It comes up often because clients inevitably ask about it when discussing closing costs and budgeting.

So here’s how it’s determined:

Are the couple considered spouses?

For the LTT Rebate, spouses are:

• Two people who are married, or
• Two people who are not married but have:
  • Lived together continuously for at least 3 years, or
  • Are in a relationship of some permanence and share a child (biological or adopted)

When the buyers are spouses

• If neither spouse has ever owned a home, they qualify for the full rebate
  • Up to $4,000.00 for Provincial LTT
  • Up to $4,475.00 for Municipal LTT (Toronto)
• If one spouse previously owned a home, but not while they were spouses, they can still claim the full rebate
• If one spouse owned a home at any time while they were spouses, neither buyer qualifies, even if:
  • Only one name was on title, or
  • They didn’t live in the home together

When the buyers are not spouses

• Each buyer is assessed individually
• A buyer who has never owned a home can claim the rebate based on their ownership share

Understanding whether buyers are legally spouses, and when that status began, is the difference between a full rebate, a partial rebate, or no rebate at all.

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