New Condos and Homes HST Rebate Calculator | Ontario

In Ontario, the Harmonized Sales Tax (HST) rebate for new condos and homes is a tax incentive designed to offset some of the tax burden associated with purchasing newly constructed residential properties. The rebate aims to make homeownership more accessible and affordable for buyers of newly built homes and condominiums.

Here’s an explanation of how the HST rebate works for new condos and homes in Ontario:

1. Eligibility: The HST rebate is available to individuals who purchase newly constructed or substantially renovated homes or condominiums in Ontario. The rebate applies to both primary residences and investment properties, but eligibility criteria may vary depending on the type of property and its intended use.
2. Amount of Rebate: The HST rebate amount depends on various factors, including the purchase price of the property and whether it will be used as a primary residence. Generally, the maximum rebate amount for eligible properties is $24,000. However, the rebate may be reduced for properties with a purchase price above certain thresholds.
3. Primary Residence Rebate: For buyers who intend to use the property as their primary residence, the HST rebate typically covers a portion of the federal portion of the HST, which is 5% of the purchase price. The provincial portion of the HST, which is 8% in Ontario, is not eligible for the rebate.
4. Investment Property Rebate: For buyers who purchase new condos or homes as investment properties or rental units, the HST rebate is available for the full amount of the HST, including both the federal and provincial portions. However, certain conditions must be met to qualify for the rebate, and the property must be rented out for a minimum period after closing.
5. Application Process: Buyers must apply for the HST rebate within a specified timeframe after closing on the property. The application process involves completing and submitting the appropriate forms to the Canada Revenue Agency (CRA) or the Ontario Ministry of Finance, along with supporting documentation.
6. Builder Assignments: In cases where buyers purchase new condos or homes through an assignment from a builder, the HST rebate may be assigned to the buyer by the original purchaser (assignor). However, specific conditions must be met for the assignment to be valid, and both parties must comply with CRA guidelines.
7. Conditions and Exclusions: It’s essential to understand the eligibility criteria, conditions, and exclusions associated with the HST rebate for new condos and homes in Ontario. Consulting with a tax professional or real estate lawyer can help ensure compliance with all requirements and maximize the rebate amount.

Overall, the HST rebate for new condos and homes in Ontario is a valuable incentive that can help offset some of the costs associated with purchasing newly constructed residential properties, making homeownership more attainable for buyers.