What is the current GST/HST rate that applies to new home purchases in Ontario?
Correct Answer
C) 13% HST
Ontario uses the harmonized sales tax: the 5% federal part plus an 8% provincial part, for 13% HST on taxable supplies such as a builder's sale of a new home. Buyers may be able to recover part of it through new housing rebates.
Why This Is the Correct Answer
Ontario's HST is 13%, made up of the 5% federal portion and the 8% provincial portion, and it applies to a builder's sale of a new home.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
- → Which of the following best describes when land transfer tax is typically paid?
- → A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
- → Which type of real estate transaction is generally exempt from GST/HST in Canada?
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