The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).
- The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010; however, note transition rules below.
- HST will not apply on the purchase price of re-sale homes.
- HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
- HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
- Click here for more background information on how the HST will affect REALTORS®.
- Click here for some common questions and answers.
- Visit REALTORlink for on-going updates, provided by CREA. To access, log in to www.REALTORLink.ca , using your TorontoMLS log-in information, then select “Toronto”. CREA’s HST updates are provided in the sidebar titled “HST Update”.