HST Changes for New Home Buyers

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By Elli Davis, July 6, 2009

In a recent move by Dalton McGuinty's Liberal government, potential new home buyers were given some relief from the upcoming, and very controversial, harmonized sales tax.

With new changes, buyers of all new homes will receive a 75% rebate on the 8% "provincial portion" of the HST on the first $400,000 of the cost. For new homes with higher price tags, they will only be charged the 8% on costs over $400,000.

The initial budget released by Finance Minister Dwight Duncan in March stated that only buyers purchasing new homes under $400,000 would see this rebate. Those purchasing new homes over $500,000 would have seen a large increase in the price of their home without it.

The HST is set to take effect July 1, 2010.

For more information, please read the following: Harmonized Sales Tax Information