How Much HST Do You Pay On A New Home?

Carboard boxes stacked in living room of new Ontario home

Buying a new house or condo is an exciting time in any person’s life. It signals new beginnings and new investments in our future. It also signals an important investment and a long repayment period.

When buyers first purchase a new property, they may be shocked to find that the cost of the land and structure is only a portion of the closing costs. Home buyers are required to pay other related costs including HST on new purchases – even new property.

Tax On The Purchase Of Your New House

In Ontario, buyers are charged 13% HST on new homes. This tax is broken down into two segments, 5% being the federal portion and the remaining 8% being the provincial part. While 13% may not seem like a lot at first, it can definitely pile up quickly for first-time buyers.

Most new home purchases include both federal and Ontario HST in the purchase price of a home. For example, a new house with a list price of $450,000, includes almost $52,000 in HST in the overall price of the home. . .
The New Housing Rebate allows buyers to recover some of the tax by way of a rebate..

Save With The GST/HST New Housing Rebate

The GST/HST Rebate New Housing Rebate helps return a part of the HST paid on three types of homes:
Proud parents watching young children explore living room of new home
Homeowners are eligible to receive up to 36% or a maximum of $6,300 of the federal portion of HST (5%) repaid to them. They can also receive 75% of the Ontario portion of the HST (8%) up to stated maximum. This means that homeowners who apply for both federal and provincial rebates could receive a maximum of $30,000 returned to them. This is a substantial amount that can help many homeowners save money.

Apply for the HST Rebate in Ontario

In order to claim the GST/HST New Housing Rebate, owners will need to meet eligibility requirements such as:

Even if they meet these requirements, they must have receipts, complete an application and submit it to the CRA. Even after this is done, there is no guarantee that they’ll receive the maximum rebate amount or even have their claim approved. We recommend that all owners apply for the rebate with the help of tax experts. They can help you get the most out of your rebate.

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Interested in finding how much you can get back?

If you've recently undergone substantial renovations, built or hired someone to build an addition, built or hired someone to build a new home, or purchased a new residential rental property, you can receive money back from the government. Use our free calculator to find out how much you qualify for.

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