HST...What Does It Mean For Buyers Of Toronto Houses & Condos?
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 condounits (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.