On July 1st, the
About 93 per cent of all homes sold in
It’s important to note, the HST is not charged on resale homes.
In addition it is not charged on:
- home insurance
- mortgage interest costs
- real estate commissions
- legal fees
- new homes
Regardless of the price of new homes purchased as primary residences,, buyers may be entitled to a rebate in respect of the provincial part of the HST of up to $24,000, ensuring that buyers of new homes priced up to $400,000 will, on average, pay no more – or possibly even less – tax than under the PST system. The effect of the rebate is that homes valued over $400,000 will be subject to the 8 per cent provincial part of the HST on the amount above $400,000.
New Rental Housing Rebate
New rental housing, including residential investment properties, receive a similar rebate to the new homes reimbursement. This rebate also supports affordable rental housing in
- Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits.
- Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year.
- Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent.
- Delivering an additional $500 a year to help senior homeowners pay their property taxes.
And to leave your readers with some context of how real estate agents are viewing the market, check out http://www.torontosun.com/newhomesandcondos/2010/08/06/14946611.html
I have also provided some additional resources below and if you or any of readers have any questions, just ask
Rachael.MOR@ontario.ca
Some Helpful Links:
Builder Disclosure Requirements
Owner-built Homes, Mobile Homes and Floating Homes in Ontario
Purchasers of New Housing in Ontario
2 comments:
Hi, my name is Grahame with the Ontario Ministry of Revenue. I read your post and wanted to add the following comments.
The number one thing that can be done to ensure that people can afford a home is to ensure that people have a job. The HST is estimated to increase investment by $47 million and almost $600,000 jobs.
The HST will not apply to homes under $400,000 and will not apply to resale homes regardless of the price.
The HST is part of this comprehensive tax package that will see 93 per cent of Ontarians receive personal income tax cut. With these cuts Ontario now has the lowest provincial tax rate in Canada on the first $37,106 of taxable income. In fact, 90,000 low-income Ontarians will no longer have to pay Personal Income Tax.
To help families we have introduced a permanent $260 Sales Tax Credit for low- and middle-income adults, children and seniors. In total $4.2 billion in transition payments will be delivered to help Ontarians adjust to the Harmonized Sales Tax. It is important to remember that every $100 in tax relief is equivalent to the 8% tax on $1250 in newly taxed items.
Additional Links Provided by Grahame;
I read you blog post regarding the Harmonized Sales Tax and just wanted to share a couple links with you.
Please find more information for people buying homes here: http://www.rev.gov.on.ca/en/taxchange/homebuyers.html
Another helpful document is a list of what's taxable under the HST and what's not: http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf.
For more information about the HST please visit www.ontario.ca/taxchange.
Please do not hesitate to contact me if you have any questions regarding the HST or the government’s tax reforms.
Thank you,
Grahame
Grahame.mor@ontario.ca
www.twitter.ca/riversgr
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