Effective July 1, 2010, Ontario’s 8% provincial retail sales tax is harmonized with the 5% federal goods and services tax (GST), creating a single, value-added HST of 13%. The Ontario HST will generally use the same rules and tax base as the GST, which means NEW homes in Ontario that are subject to GST will also become subject to the provincial component of the HST. This DOES NOT apply to resale homes.

Good News for new homes priced under $500,000; up to $24,000 rebate is available!

There is a partial rebate of the provincial component of the HST - 75% of the provincial portion of the HST, up to a maximum rebate of $24,000 ($400,000 × 8% provincial component = $32,000 ×75% rebate = $24,000). On new homes priced under $400,000, the rebate equals 75% of the provincial component. The rebate is reduced for new homes priced between $400,000 and $500,000 and is not be available for homes priced over $500,000. New home buyers may also be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate declines for homes priced between $350,000 and less than $450,000.

The Ontario HST rebate is available on the same types of new residential properties as the GST new housing rebate. Qualifying housing include substantially renovated housing, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary residences. Recreational properties such as cottages and ski chalets not used as primary residences would generally not qualify for the new housing rebate. An HST rebate for new rental housing is also available, which is similar to the rebate for new homes.

Brokerage [TELLEM_BROKERAGENUMBER]
Corp. Office: 6505A Mississauga Rd.
Mississauga, ON L5N 1A6