About the HST (Harmonized Sales Tax) in Ontario, Canada

The harmonized sales tax combines the eight percent provincial sales tax with the five percent federal goods and services tax (GST) to create a single 13 percent harmonized sales tax (HST) administered by the federal government...as of July 1, 2010.

No HST will be charged on:

• residential rents
• condo fees
• purchase of resale homes

The HST will be applied on the purchase of new homes. However, homebuyers will be able to claim a rebate of some of the provincial portion of the tax for new homes priced up to $500,000. The rebate for new primary residences under $400,000 will be six percent of the purchase price (or 75 percent of the provincial portion of the tax), with the rebate amount reduced for homes priced between $400,000 and $500,000.

 Buyers of new residential rental properties will receive a similar rebate.

 The HST will apply on real estate commissions. 

Compliments of Ann Leprich, Sales Representative RE/MAX Jazz Inc., Brokerage