Navigating the Largest Transaction of Your Life
Real estate tax in Ontario is complex. Knowing the HST rules can save you tens of thousands of dollars.
1. New vs. Resale Homes
- New Construction: Always subject to 13% HST. The price list often says "HST Included," but you should confirm.
- Resale Homes: Subject to Land Transfer Tax, but exempt from HST. This applies to most "used" homes.
2. The Ontario New Housing Rebate
If you buy a new home for under $450,000 as your primary residence, you can claim a rebate:
- Federal portion: Up to $6,300.
- Provincial portion: Up to $24,000 (regardless of price, but subject to limits).
3. Selling Commercial Property
Unlike residential resale, the sale of commercial real estate in Ontario is generally subject to 13% HST. The buyer usually pays the tax, but the seller must be registered to collect it.
4. Assignment Sales
If you sell your "right" to a pre-construction condo before it's finished, you may be liable for HST on the profit you make.