Ontario First Time Home Buyer Tax Credit Calculator

How the Ontario First Time Home Buyer Tax Credit Works

The Ontario First Time Home Buyer Tax Credit is a refundable tax credit that helps first-time home buyers reduce the amount of income tax they owe. The credit is calculated based on your household income and the purchase price of your home.

The credit is available for up to 15 years, with a maximum credit amount of $7,000 per year. The credit is phased out based on your household income, with the maximum credit available to households earning up to $150,000.

The credit is applied to your income tax return and can be claimed for up to 15 years, with a maximum total credit of $105,000. The credit is refundable, meaning if you owe less in taxes than the credit amount, you will receive the difference as a refund.

Eligibility Requirements

To qualify for the Ontario First Time Home Buyer Tax Credit, you must meet the following eligibility criteria:

• You must be a Canadian citizen or permanent resident
• You must be at least 18 years old
• You must not have owned a home in the past five years
• You must be purchasing a principal residence in Ontario
• You must be the primary applicant for the home purchase

In addition to the eligibility criteria, there are income limits that determine the amount of credit you can claim. The income limits are based on your household income and are phased out as your income increases.

Credit Amounts and Income Limits

The amount of the Ontario First Time Home Buyer Tax Credit you can claim depends on your household income. The credit is phased out as your income increases, with the maximum credit available to households earning up to $150,000.

The credit is available for up to 15 years, with a maximum total credit of $105,000. The credit is refundable, meaning if you owe less in taxes than the credit amount, you will receive the difference as a refund.

How to Claim Your Credit

To claim your Ontario First Time Home Buyer Tax Credit, you will need to complete and file Form T2092, First-Time Home Buyer's Tax Credit, with your income tax return. The form is available on the Canada Revenue Agency (CRA) website.

You will need to provide information about your home purchase, including the purchase price, the date of purchase, and the address of the property. You will also need to provide information about your household income, including your net income for the year and the income of any other individuals in your household who are claiming the credit.

Once you have completed Form T2092, you can file your income tax return using the CRA's online filing system, Netfile. The credit will be applied to your income tax return and can be claimed for up to 15 years, with a maximum total credit of $105,000.

Worked Examples

Example 1: Single Applicant with Income Below Threshold

John is a single applicant with a household income of $120,000. He is purchasing a principal residence in Ontario for $400,000.

John qualifies for the maximum credit of $7,000 per year. The credit is applied to his income tax return and can be claimed for up to 15 years, with a maximum total credit of $105,000.

Example 2: Couple with Income Above Threshold

Sarah and David are a married couple with a household income of $185,000. They are purchasing a principal residence in Ontario for $500,000.

Sarah and David qualify for a reduced credit of $5,400 per year. The credit is applied to their income tax return and can be claimed for up to 15 years, with a maximum total credit of $81,000.