HST on Ontario real estate, when it applies.
HST at 13 percent applies to some real estate and not to others. A new home from a builder usually attracts HST, a resale home usually does not. The difference can be tens of thousands of dollars.
Book a 15 minute callNew homes and the rebate
A new or substantially renovated home from a builder is subject to HST. Builders often quote a price with the HST new housing rebate already assigned, which assumes you will live in the home. Khan Law confirms you qualify, because a buyer who rents it out instead can owe the rebate back.
Resale homes
A used residential home sold by an individual is generally exempt from HST. Problems arise when a property was renovated, used for short term rental, or sold by a builder, where HST can apply unexpectedly.
Investors and self assessment
A registered buyer of new residential rental can claim the new residential rental property rebate, and registered commercial buyers can self assess. Khan Law files the right rebate or election so you do not pay HST you can recover.
Important considerations
- The builder rebate assumes owner occupancy. Renting the home out can trigger repayment.
- A flipped or heavily renovated home can attract HST even on resale.
- Rental investors may qualify for the new residential rental property rebate. Claim it on time.
Frequently asked
Do I pay HST when I buy a resale home?
Usually no. A used home sold by an individual is generally exempt. New homes from a builder are the common exception.
I am renting out my new condo. Is the rebate still mine?
The builder new housing rebate assumes you occupy the home. As a landlord you likely owe it back but can claim the rental property rebate instead. Khan Law handles the switch.