Toronto Real Estate and HST facts
Today is the first day when the Harmonized Sales Tax (HST) comes
into effect. The 13% HST replaces the 8% Provincial Sales Tax (PST) and
5% Goods and Services Tax (GST). This means many purchases that were
exempt from GST before will now cost 5% more, and those exempt from PST
will cost 8% more.
For home buyers, the situation can be complicated. Here’s the
basic lowdown:
Resale Homes: No HST on Purchase Price, BUT HST on Services
Resale home prices are exempt from the HST, but related services such
as legal, accounting, brokerage fees and home inspections will now
attract HST when previously they only attracted GST. This means those
service items will now cost 8% more.
New Homes: HST for homes above $400K
For buyers of new condos and houses purchased from a builder, or
those substantially renovated, HST may apply. Homes costing up to
$400,000 may get up to a $24,000 tax rebate.
This will take some of the sting out of the HST. Click here
to download a PDF version of the rebate application form here.
As always, I encourage home buyers to first consult with their
accountants and/or lawyers to understand the exact amount of HST due at
closing. Questions or comments? Contact
me
Happy Canada Day!