The HST does not apply to resale homes
Sales tax did not apply to the purchase price of resale homes under the previous PST, and it does not apply under the HST.
In fact, about 93 per cent of all homes sold in Ontario, on average, are not subject to an additional tax amount under the HST.
For new housing, compared to the retail sales tax that was previously embedded in new home prices, additional tax generally applies only to the portion of the price above $400,000.
Enhanced New Housing Rebate
Buyers of new homes purchased as primary residences receive a rebate of up to $24,000, regardless of the price of the new home.
This rebate ensures that buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario), on average, pay no more - or possibly even less - tax than under the old PST system, where PST was embedded in new home prices.
New Rental Housing Rebate
New rental housing, including residential investment properties, receive a similar rebate. This rebate supports affordable rental housing in Ontario.
Transitional Rules
For some purchases of new homes that straddled the implementation date of July 1, 2010, the provincial portion of the HST does not apply, depending on when the written agreements of purchase and sale were entered into and when ownership or possession is transferred.
In some circumstances, a Retail Sales Tax transitional new housing rebate may be available. Special requirements apply to applicants who are builders.
