HST on Resale Homes, New Homes
and Rental Properties
The Basics on how to the Ontario HST affects a Home Buyer, Seller and Tenant in Real Estate.
The Ontario provincial government has combined the 8% PST (Provincial Sales Tax) with the 5% FST (Federal Goods and Services Tax),
creating a new 13% HST - Harmonized Sales Tax.
The HST came into effect on 1 July, 2010:
♦ HST does NOT apply on the purchase price of re-sale homes
♦ HST DOES apply to services such as moving cost, legal fees, home inspection fees, appraisal fees, labour for renovations, landscaping and REALTOR commissions if applicable
♦ It is estimated, the average home buyer will likely pay $1200 - $1500 additional cost in HST fees when moving
♦ HST applies to the purchase price of newly constructed homes. However, the Province proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000 (so you are looking at a savings up to the first $24,000 hst)
♦ For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system
HST on Rent?
Since Landlord has increased costs for the goods and services he uses, such as labour for repairs, landscaping etc., expect your rental rates to rise.
HST on Condominium Maintenance Fees?
Many services associated with common maintenance of the building will be subject to HST. It makes common sense to expect some adjustment for monthly fees.
If you have more Questions about the HST, additional details are available at the provincial government web site
www.rev.gov.on.ca or by calling government enquiry line at 1-800-337-7222