What is the GST/HST rate that typically applies to new residential housing in Canada?
Correct Answer
C) 5% GST or applicable HST rate
Sales of new residential housing are taxable supplies, so the buyer pays 5% GST in non-participating provinces such as BC, or the HST rate in participating provinces (for example 13% in Ontario and 14% in Nova Scotia since April 1, 2025). New housing rebates can reduce the tax for qualifying buyers.
Why This Is the Correct Answer
This answer is correct. A new home is subject to GST at 5% where there is no HST, and to the provincial HST rate where the province has harmonized. BC buyers of new homes therefore pay 5% GST, subject to any rebate they qualify for.
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