If you have any questions or would like more information about HST and your home please Contact Us. If you are planning on buying or selling a home or property please visit our Buyers Page or Sellers Page.
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:
Ontario’s HST does not apply to the purchase price of homes that are up for resale – it only applies to new homes.
Payments for related services, such as home inspection and moving help, are all subject to added tax via the HST.
While HST does apply to the purchase of newly-constructed homes, you are eligible for a rebate from the Government of Ontario if you paid HST to “build or substantially renovate a house, build a major addition that forms part of a renovation of your house, or convert a non-residential building to residential use.” The rebate only applies if the house is in Ontario, is being used as your primary residence, and had a fair market value of less than $450,000 at the time of construction or renovation.
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.
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.