When is GST/HST typically payable on a residential real estate transaction in Canada?
Correct Answer
B) Only on new or substantially renovated homes
GST/HST is generally payable on new homes or substantially renovated homes sold by builders or developers. Resale homes sold between individuals are typically exempt from GST/HST, as the original purchaser would have already paid the tax.
Why This Is the Correct Answer
GST/HST applies specifically to new or substantially renovated residential properties sold by builders, developers, or vendors who are registered for GST/HST. This is because these are considered commercial sales of newly created housing inventory. The tax ensures that new housing construction is subject to consumption tax, while resale transactions between individuals are exempt since GST/HST was already paid on the original new home purchase.
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In Alberta, property taxes are primarily used to fund which level of government services?
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In Ontario, who is responsible for paying the land transfer tax when a property is purchased?
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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?
- → 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?
- → A buyer purchasing a $2 million commercial property in Alberta asks what provincial land transfer tax will be due on closing. What is the correct response?
- → Under the Income Tax Act, what is the principal residence exemption?
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- → Under Ontario's Assessment Act, how often does the default schedule call for property to be revalued for assessment purposes?
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