Rebates and Exemptions
The HST will not be charged on the following items that are currently not subject to PST:
- Basic groceries
- Prescription drugs
- Certain medical devices
- Child care
- Residential rents
- Municipal public transit
- Most health and education services
- Legal aid
- Most financial services
- Tutoring
- Music lessons
Consumers will not have to pay the provincial portion of the HST for:
- Qualifying prepared food and beverages sold for $4.00 or less
- Print newspapers
- Children's clothing and footwear
- Children's car seats and car booster seats
- Diapers
- Feminine hygiene products
- Books (including audio books)
83 per cent of consumer purchases will not see a new tax.
Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.
- Buyers of new residential rental properties will receive a similar rebate
- The HST will not apply to purchases of resale homes.
Eliminating Hidden Taxes
Right now, PST is paid by most businesses on various costs throughout the production of an item. In other words, though you may not realize it, the PST is charged multiple times before a product reaches the store.
When Newfoundland and Labrador, Nova Scotia and New Brunswick harmonized with the federal GST, cost savings were passed through to the consumer. This led to lower prices for some products.
Tax Benefits for People
To help Ontarians transition to the HST, the Ontario government will provide $10.6 billion over three years in direct payments and permanent personal income tax cuts. Read more about the tax benefits to families.
