A first-time home buyer signs an agreement in May 2026 to buy a newly built home in Ontario from a builder for $450,000 before tax, to live in as a primary residence. If all conditions are met, what is the most HST that can be rebated under the federal and Ontario rebates combined?
Correct Answer
D) $58,500
The HST is 13% x $450,000 = $58,500 ($22,500 federal part, $36,000 provincial part). The federal first-time home buyers' GST/HST rebate returns 100% of the federal part on homes up to $1 million, and the Ontario first-time buyer and enhanced rebates together return the 8% provincial part up to $80,000. All $58,500 can therefore be rebated.
Why This Is the Correct Answer
Federal part: 5% x $450,000 = $22,500, fully rebated by the FTHB GST/HST rebate because the price is under $1 million. Provincial part: 8% x $450,000 = $36,000, fully rebated because it is under the $80,000 limit. Combined, the buyer can recover $58,500, the entire HST.
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