Land transfer tax is imposed by the provincial government on all purchases of property in Ontario (with an additional tax imposed by the City of Toronto for properties purchased there). It is equivalent to approximately 1.5% of the purchase price. Land transfer tax can be a burden to many buyers, particularly first-time buyers who are just getting into the housing market. Fortunately, the Ontario government has a rebate program in place to offer relief to first-time buyers. Anyone who is buying a home, has never owned property before, and has never lived in property owned by their spouse or common-law partner is entitled to a rebate of up to $2,000.00. This is taken right off the amount of land transfer tax, so there is no need to pay up front and wait for a refund. For example, if land transfer tax would have been $2,150.00, land transfer tax owing by a first-time buyer would be $150.00. If land transfer tax would have been $1,825.00, there would be no land transfer tax owing. This program is one of many designed to help first-time buyers get into the marker and own their own homes.