Ontario Real Estate Glossary
HST on Real Estate (Ontario)
Ontario charges 13% Harmonized Sales Tax on the sale of new homes (built or substantially renovated by the seller). Resale homes are HST-exempt. New-home buyers can claim partial federal and Ontario HST rebates if the property is their primary residence.
How does HST apply to Ontario real estate?
Ontario applies 13% Harmonized Sales Tax (HST) to the sale of newly built or substantially renovated homes — single-family, condo, custom-built. Resale homes are HST-exempt because the tax was collected on the original new-build sale. New-home buyers may claim partial federal and Ontario HST rebates if they (or close relatives) intend to use the home as their primary residence. Investor purchases of new homes do not qualify for the new-housing rebate; investors may instead claim the New Residential Rental Property (NRRP) rebate in many cases.
When HST applies
HST applies to:
- A home built or substantially renovated by the seller (typically a builder)
- Pre-construction condos sold by the developer
- Vacant land sold by a builder/developer
- Properties whose use changes (e.g., from rental to personal use) — sometimes triggers self-supply HST
HST does not apply to:
- Resale homes between private parties
- Farmland sold by an individual farmer in many cases
- A used home that has not been substantially renovated
The new-housing rebate
A primary-residence buyer of a new home priced at $350,000 or less receives:
- 36% federal GST rebate (5% federal portion of HST)
- 75% Ontario HST rebate, capped at $24,000
The rebate phases out between $350,000 and $450,000 on the federal portion. The Ontario rebate continues at full value above $450,000 because it is capped, not phased out. For a $750,000 new home, the buyer typically receives the full $24,000 Ontario rebate but no federal rebate.
Builder-paid HST scenarios
Many new-home contracts list the price net of expected rebates ("price includes HST and applicable rebates"). The builder collects HST from the buyer at closing, the buyer assigns the rebate claim to the builder, and the builder then files for the rebate. This simplifies cash flow for the buyer but only works when the buyer qualifies for the rebate — investor buyers often must self-fund the HST and reclaim it later.
Where this appears in your Humber program
HST on real estate is core content in Course 3: Additional Residential Real Estate Transactions under new-construction modules and reappears in Course 4 for commercial HST handling. The new-housing rebate math is exam-tested.
Frequently asked questions
Do you pay HST on a resale home in Ontario?
No, you do not pay HST on a resale home in Ontario. The HST was collected when the home was first sold as new construction. Resale transactions between private owners are HST-exempt — the buyer pays only the purchase price plus closing costs (Land Transfer Tax, legal fees, title insurance). HST applies only to genuinely new or substantially renovated homes sold by a builder or developer.
How much HST is there on a new home in Ontario?
Ontario charges 13% HST on new homes (5% federal + 8% provincial). On a $700,000 new home, the gross HST is $91,000. A primary-residence buyer typically receives a partial Ontario rebate (capped at $24,000) and may receive a partial federal rebate depending on price. After rebates, the net HST on a $700,000 primary-residence new build is roughly $67,000.
Who qualifies for the HST new-housing rebate in Ontario?
The HST new-housing rebate is available to buyers (or qualifying relatives) who use the home as their primary residence. The buyer must intend at the time of purchase to live in the home as their principal residence. Investors who plan to rent the property out do not qualify for the new-housing rebate but may qualify for the New Residential Rental Property (NRRP) rebate, which has different rules and rates.
Is HST charged on land transfer tax in Ontario?
No, HST is not charged on Land Transfer Tax. LTT and HST are separate taxes with separate calculation bases. LTT is a provincial tax on the property registration; HST is a federal/provincial sales tax on the home itself. Buyers pay both at closing on a new-home purchase but on different bases — LTT on the price, HST on the price (with rebates).
Practice this topic
ExamAce covers HST on new builds, the new-housing rebate, and investor vs primary-residence treatment in the Course 3 question bank.
See it in practice
Walk through a realistic Ontario scenario where HST on Real Estate (Ontario) matters — with the decision point, the correct move, and the pitfall.
Authoritative sources
Related terms
Closing Costs (Ontario)
The fees, taxes, and adjustments a buyer pays on top of the purchase price when an Ontario real estate transaction completes — typically 1.5% to 4% of the price, comprising land transfer tax, legal fees, title insurance, adjustments, and disbursements.
Tarion Warranty
Mandatory new-home builder warranty coverage in Ontario, regulated by the Tarion Warranty Corporation under the Ontario New Home Warranties Plan Act.
Land Transfer Tax (Ontario)
A provincial tax payable by the buyer on the closing of any Ontario real estate purchase, calculated as a marginal rate on the purchase price. Toronto purchases also pay a separate Municipal Land Transfer Tax with similar brackets.