When you buy a newly constructed GTA home, condominium or town home with the help of an experienced real estate broker or sales representative, it’s important to remember that the entire purchase price (including land) is taxable. These days, the tax paid on a real estate transaction goes towards Ontario’s Harmonized Sales Tax, or HST, which was implemented in July 2010. HST represents a combination of the former federal Goods and Services Tax (five per cent) and Provincial Sales Tax (eight per cent) – resulting in one harmonized tax that will add 13 per cent onto the bill for your purchase of a newly constructed home.
There are, however, some very important considerations to take into account with respect to HST and real estate sales in Ontario:
To have a look at the information and forms concerning to the rebate detailed above, check out this helpful PDF file produced by the Canada Revenue Agency: GST/HST New Housing Rebate.
Want to know more?
A licensed Ontario REALTOR can help you figure out whether your purchase of a Greater Toronto house or condo property is subject to – or exempt from – HST taxation. A real estate sales representative or broker can also help you with the paperwork when applying for any applicable HST rebates for new homes. To get in touch with our team of knowledgeable and professional real estate agents at Living Realty, CLICK HERE or visit/call one of our offices nearest you.