London, June 24, 2010
No HST on Resale Homes
Ontarians hoping to purchase a home this year may be pleasantly surprised to learn that the new
Harmonized Sales Tax (HST) will, generally speaking, not be applicable to the purchase price of
resale homes.
The HST is replacing the current Goods and Services Tax (GST) and Provincial Sales Tax (PST)
in Ontario, but will apply only to items which are currently subject to GST. Newly built homes
and substantially renovated homes currently have GST added to the purchase price, but “used
residential properties” (otherwise known as resale homes), are exempt from GST and will be
exempt from HST once it comes into effect on July 1, 2010.
HST will be payable on certain services associated with the purchase of a home, such as legal
fees, real estate commissions, moving fees and appraisals.
For more detailed information about what will and will not be taxable under the new HST
legislation, we encourage you to visit http://www.rev.gov.on.ca/en/taxchange/taxable.html or
contact your accountant or tax preparer.
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