Newly built home exemption amounts
Last updated on April 25, 2024Information on this page is for properties registered at the Land Title Office on or after April 1, 2024.
If you registered your property before April 1, 2024 see the newly built home previous exemption amounts.
On this page
- What determines your exemption amount
- Properties smaller than 0.5 hectares
- Properties larger than 0.5 hectares
What determines your exemption amount
If you qualify for the newly built home exemption, the amount of property transfer tax you pay depends on:
- The fair market value of the property
- The percentage of the property transfer eligible for the exemption
- The size of the property
- Whether there are any non-residential improvements on the property
- When the property was registered
The exemption amount is deducted from the amount of tax you would normally pay.
Properties smaller than 0.5 hectares
If your property size is smaller than 0.5 hectares, the following information applies.
Note: If the property transfer is larger than 0.5 hectares then the fair market value of your property that is eligible for exemption will change. In this case, your exemption amount may also change.
Exemption amount when 100% of the property transfer is eligible
When 100% of the property transfer is eligible, the exemption amount is determined by the fair market value of your property.
Effective April 1, 2024, newly built homes with a fair market value below $1,100,000 have an exemption amount the same as the property transfer tax amount. If the fair market value of your property is more than $1,100,000 and less than $1,150,000, the exemption amount is proportionally reduced.
You can use the property transfer tax calculator to estimate the property transfer tax before exemption based on the fair market value of your property.
You can use the exemption table or the exemption equation below to find your exemption amount and calculate the amount of tax payable.
| Fair market value | Property transfer tax amount | Exemption amount | Property transfer tax payable |
|---|---|---|---|
| $1,100,000.00 | $20,000.00 | $20,000.00 | $0 |
| $1,101,000.00 | $20,020.00 | $19,619.60 | $400.40 |
| $1,102,000.00 | $20,040.00 | $19,238.40 | $801.60 |
| $1,103,000.00 | $20,060.00 | $18,856.40 | $1,203.60 |
| $1,104,000.00 | $20,080.00 | $18,473.60 | $1,606.40 |
| $1,105,000.00 | $20,100.00 | $18,090.00 | $2,010.00 |
| $1,106,000.00 | $20,120.00 | $17,705.60 | $2,414.40 |
| $1,107,000.00 | $20,140.00 | $17,320.40 | $2,819.60 |
| $1,108,000.00 | $20,160.00 | $16,934.40 | $3,225.60 |
| $1,109,000.00 | $20,180.00 | $16,547.60 | $3,632.40 |
| $1,110,000.00 | $20,200.00 | $16,160.00 | $4,040.00 |
| $1,111,000.00 | $20,220.00 | $15,771.60 | $4,448.40 |
| $1,112,000.00 | $20,240.00 | $15,382.40 | $4,857.60 |
| $1,113,000.00 | $20,260.00 | $14,992.40 | $5,267.60 |
| $1,114,000.00 | $20,280.00 | $14,601.60 | $5,678.40 |
| $1,115,000.00 | $20,300.00 | $14,210.00 | $6,090.00 |
| $1,116,000.00 | $20,320.00 | $13,817.60 | $6,502.40 |
| $1,117,000.00 | $20,340.00 | $13,424.40 | $6,915.60 |
| $1,118,000.00 | $20,360.00 | $13,030.40 | $7,329.60 |
| $1,119,000.00 | $20,380.00 | $12,635.60 | $7,744.40 |
| $1,120,000.00 | $20,400.00 | $12,240.00 | $8,160.00 |
| $1,121,000.00 | $20,420.00 | $11,843.60 | $8,576.40 |
| $1,122,000.00 | $20,440.00 | $11,446.40 | $8,993.60 |
| $1,123,000.00 | $20,460.00 | $11,048.40 | $9,411.60 |
| $1,124,000.00 | $20,480.00 | $10,649.60 | $9,830.40 |
| $1,125,000.00 | $20,500.00 | $10,250.00 | $10,250.00 |
| $1,126,000.00 | $20,520.00 | $9,849.60 | $10,670.40 |
| $1,127,000.00 | $20,540.00 | $9,448.40 | $11,091.60 |
| $1,128,000.00 | $20,560.00 | $9,046.40 | $11,513.60 |
| $1,129,000.00 | $20,580.00 | $8,643.60 | $11,936.40 |
| $1,130,000.00 | $20,600.00 | $8,240.00 | $12,360.00 |
| $1,131,000.00 | $20,620.00 | $7,835.60 | $12,784.40 |
| $1,132,000.00 | $20,640.00 | $7,430.40 | $13,209.60 |
| $1,133,000.00 | $20,660.00 | $7,024.40 | $13,635.60 |
| $1,134,000.00 | $20,680.00 | $6,617.60 | $14,062.40 |
| $1,135,000.00 | $20,700.00 | $6,210.00 | $14,490.00 |
| $1,136,000.00 | $20,720.00 | $5,801.60 | $14,981.40 |
| $1,137,000.00 | $20,740.00 | $5,392.40 | $15,347.60 |
| $1,138,000.00 | $20,760.00 | $4,982.40 | $15,777.60 |
| $1,139,000.00 | $20,780.00 | $4,571.60 | $16,208.40 |
| $1,140,000.00 | $20,800.00 | $4,160.00 | $16,640.00 |
| $1,141,000.00 | $20,820.00 | $3,747.60 | $17,072.40 |
| $1,142,000.00 | $20,840.00 | $3,334.40 | $17,505.60 |
| $1,143,000.00 | $20,860.00 | $2,920.40 | $17,939.60 |
| $1,144,000.00 | $20,880.00 | $2,505.60 | $18,374.40 |
| $1,145,000.00 | $20,900.00 | $2,090.00 | $18,810.00 |
| $1,146,000.00 | $20,920.00 | $1,673.60 | $19,246.40 |
| $1,147,000.00 | $20,940.00 | $1,256.40 | $19,683.60 |
| $1,148,000.00 | $20,960.00 | $838.40 | $20,121.60 |
| $1,149,000.00 | $20,980.00 | $419.60 | $20,560.00 |
| $1,150,000.00 | $21,000.00 | $0 | $21,000.00 |
Exemption amount when only part of the property transfer is eligible
If only part of the property transfer is eligible (for example, not all of the purchasers qualify), the exemption amount will be reduced. The exemption amount will be based off the percentage of the property transfer that is eligible.
For example, you and your spouse purchase an $835,000 newly built home as joint tenants, but only you are eligible for the newly built home exemption (your spouse is not eligible). The net property transfer tax payable is calculated as follows:
Property transfer tax before exemption = $14,700
(Use the property transfer tax calculator)
Exemption amount available x 50% = $7,350
(Because only 50% of the owners are eligible) = $14,700 x 50%
Net property transfer tax payable = $7,350
Properties larger than 0.5 hectares
If you purchase a newly built home on property that is larger than 0.5 hectares, then the fair market value of your property eligible for exemption changes. The calculations to find your tax payable also change.
First, find the portion of fair market value that is eligible for the exemption. This value is calculated as follows:
- The fair market value of your principal residence (not including the value of the land)
Add
- The fair market value of the land (not including the value of the principal residence and any other improvements) multiplied by the ratio of 0.5 hectares to the total area of the property
You can then use the value calculated above to determine the tax exemption amount by using the following calculation:
- The portion of fair market value eligible for exemption divided by the total fair market value of the property
Multiply by
- Tax payable before the exemption
Lastly, to find the tax amount payable after the exemption, subtract the exemption amount from the tax payable before the exemption.
Calculation example
You purchase a newly built home that will be your principal residence. Your home is on 2 hectares of land. The fair market value of the land is $700,000 and the fair market value of the home is $350,000. The total fair market value of the property is $1,050,000.
The following steps show how to calculate the tax payable after the exemption:
- The fair market value of your principal residence (not including the value of the land) is $350,000.
- The fair market value of the land (not including the value your principal residence) is $700,000.
- The ratio of 0.5 hectares to the total area of the property (0.5 ÷ 2) is 0.25.
- The fair market value of the land applicable for exemption ($700,000 x 0.25) is $175,000.
- The fair market value of your property that is eligible for the newly built home exemption ($350,000 + $175,000) is $525,000.
- The proportion of property eligible for the newly built home exemption to the total fair market value of the property ($525,000 ÷ $1,050,000) is 0.5.
- The exemption amount is the total tax payable multiplied by the proportion of property eligible for newly built home exemption ($19,000 x 0.5). This is $9,500.
- The tax payable after the exemption amount is the total tax payable minus the exemption amount ($19,000 - $9,500). This is $9,500.
See more detailed calculation examples.