The Harmonized Sales Tax – What you need to know.

 Since the Harmonized Sales Tax (HST) came into effect in July of 2010 there has been a lot of confusion with respect to how this new combined tax will impact people looking to buy or sell a home.

The first thing people shopping for homes need to remember is that the HST does NOT apply to the purchase price of a resale property. This is because resale homes were never subject to the PST or the GST.  So if you’re looking in older, more established neighbourhoods like Leslieville, Riverdale, The Pocket or for homes along the Danforth this is great news for you.

 New homes, always subject to the GST,  are now subject to the HST.  There is some good news however because the provincial government will provide a rebate of 75% (to a maximum of $24,000) on the first $400,000 of the “PST” portion The HST.

 As your licensed Toronto Realtor I’m here to answer your questions about buying or selling a home.