Rod Janz

HST Breakdown for New Real Estate

 Effective July 1, 2010

• 12% replaces PST and GST
• Paid on goods, services, real estate commissions legal fees and new homes (where GST applied)
• Rebate where the GST primary resident up to $525,000 (partial 71.34% on the provincial part)
• $26,250 on homes over $525,000

Home price                    HST                        Rebate

$300,000                         $36,000                   $15,000

$400,000                         $48,000                   $20,000

$500,000                         $60,000                   $25,000

$600,000                         $70,000                   $26,250

·         Rebate claimed same as GST through Revenue Canada

·         There is a rental housing rebate

·         Property transfer tax will still apply

·         Grand parenting provisions – for contracts written before Nov. 18,2010 but completes after June 2010 you only pay GST 7%

·         Contract written December 2009 or after and completes after June 2010 pay HST 12%