If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price – or the harmonized sales tax (HST), if you live in a province that has it.
Are new homes subject to HST in Ontario?
In Ontario, the sale of newly built homes is subject to GST/HST. This means that anyone in Ontario who purchases a new home from a builder is required to pay HST/GST on their purchase.
How do I avoid paying HST on a new home?
When buyers of a newly built or substantially renovated home use the property as a primary residence for themselves or eligible family members, they can apply for a New Housing Rebate on the HST/GST they paid. If they are not going to be living there, the rebate doesn’t apply.
Is HST included in preconstruction?
For most developers, there is an HST rebate built into the price of every pre-construction project sold in the GTA.
How much tax do you pay on a new build house?
First Time Buyers purchasing Established Home for Primary Residence pay $0 stamp duty on a $650k house in NSW. And for NON-First Time Buyers stamp duty is – $24,682.
Do I pay HST on a resale house in Ontario?
A. Resale homes, also known as previously owned homes, are HST-exempt. The price negotiated between the seller and the buyer is the actual price of the home – no need to add that 13%. … Therefore, HST must be paid on the initial home purchase, but not when they are resold by the original owners or any owner thereafter.
How much is HST on a house in Ontario?
In Ontario newly constructed homes and condominiums (and homes that have been substantially renovated and put on the market for sale) are subject to an HST (Harmonized Sales Tax) rate of 13% on top of the sale price; resale homes are not charged HST.