The proposed treatment for sales of residential housing in Ontario under a harmonized sales tax (HST) is an important issue for the purchase and sale of your home. The HST at 13%, composed of a federal part at 5% and a provincial part at 8%, would apply to a builder’s sale of a newly constructed or substantially renovated residential complex, including a multiple unit residential complex (e.g., an apartment building). The sale of housing that has been previously occupied by an individual as place of residence and that is exempt from GST would also be exempt for purposes of the HST. The definitions in the Excise Tax Act that relate to housing (e.g., builder, residential complex, residential unit, residential condominium unit, substantial renovation) and the CRA’s current policies regarding the application of the GST to housing, would generally apply under the HST. For more information please download the Question and Answer sheet below.
If you are buying or selling your home and you required more information on the harmonized sales tax please contact Ryan Carson at 905-876-3500.
HST - New Housing Rebates.pdf (344.02 kb)