Do I Have To Pay HST (Hamonized Sales Tax)
When Buying A House Or Condo In Toronto
The HST or Harmonized Sales Tax (HST) is 13% sales tax that applies to all goods and services purchased in Ontario. It is a harmonized tax in that it is a combined tax collected by both the federal and provincial governments. Out of the 13% HST, a 5% portion goes to the Federal government and the remaining 8% portion goes to the government of Ontario.
What does it mean for those who are considering buying real estate in Toronto?
The HST does not apply to the purchase of RESALE houses or condominiums but applies to the purchase of NEW homes or condo units (houses or condos purchased from a builder).
There are certain Rebates buyers may be eligible for:
1. Federal HST Rebate applies only to new homes or condominiums valued at $450,000 or less and reduces the federal portion of the HST from 5% to 3.5%.
2. Ontario New Housing Rebate applies to new condominiums purchased as primary residences and is a 75% rebate on the provincial portion of the HST of up to $24,000 or the first $400,000 of the purchase price.
For Condo Owners In Toronto - condo maintenance fees themselves are not subject to HST.
Victoria Boscariol is a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States.
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