How HST will impact Real Estate

Is here a change to the amount of tax payable under the HST?

New Homes up to $400,000    
GST- taxable before July 1, 2010  5%
RST taxable before July 1,2010     No RST
Is there a change to the amount of tax payable under HST?     No change

News Homes over $400,000
GST- taxable before July 1, 2010     5%
RST taxable before July 1,2010        No RST
Is there a change to the amount of tax payable under HST?          Yes

Resale Homes
GST- taxable before July 1, 2010     No GST
RST taxable before July 1,2010        No RST
Is there a change to the amount of tax payable under HST?       No HST

Real Estate Commissions
GST- taxable before July 1, 2010     5%
RST taxable before July 1,2010        No RST
Is there a change to the amount of tax payable under HST?      Yes (changes to 13%)

The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the RST system. However, applicable RST on building supplies is embedded in the price of the home.

New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.


Still Have Questions?

To learn more about the benefits of HST visit www.ontario.ca/taxchange. You can also call 1 800 337-7222, teletypewriter (TTY) 1 800 263-7776.

For more information, you can also contact the Canada Revenue Agency. Visit the CRA website at

www.cra.gc.ca/harmonization or call 1 800 959-5525.
 
Thanks to Scotiabank for supplying me with great information! 
 
Jane Ross
-sales representative