HST Rebate

In Ontario, Canada, the HST (Harmonized Sales Tax) housing rebate is a rebate program designed to provide some relief from the HST payable on the purchase of new homes or newly constructed homes, as well as substantially renovated homes. It’s essential to consult with a tax professional. Visit the official website of the Canada Revenue Agency (CRA)  or call 1-800-959-8287 for the most up-to-date information and guidance regarding the HST housing rebate in Ontario. Here’s some information about the HST housing rebate in Ontario:

1. Eligibility Criteria:

  • To be eligible for the rebate, the home must be located in Ontario and intended to be the primary place of residence of the purchaser or their immediate family member.
  • The home must be either newly constructed or substantially renovated.
  • The purchase price of the home must be less than $450,000 to qualify for a full rebate. There is a partial rebate available for homes priced between $450,000 and $500,000.

2. Types of Rebates:

  • New Home Rebate: This rebate is available for newly constructed homes purchased from a builder.
  • New Home Substantial Renovation Rebate: This rebate is available for homes that have undergone substantial renovations, which significantly change the home’s interior or exterior.

3. Rebate Amount:

  • The rebate amount is calculated based on the provincial portion of the HST, which is 8% of the purchase price up to the maximum rebate amount.
  • For homes priced under $400,000, the maximum rebate is $24,000.
  • For homes priced between $400,000 and $450,000, the rebate amount decreases linearly until it reaches zero at $450,000.

4. Application Process:

  • The rebate application must be submitted to the Canada Revenue Agency (CRA) within two years of the home’s closing date.
  • The application form is typically included in the paperwork provided by the builder or can be downloaded from the CRA website.

5. Documentation Required:

  • Proof of purchase (e.g., agreement of purchase and sale).
  • Proof of occupancy (e.g., utility bills, lease agreement).
  • Documentation related to the new construction or substantial renovation of the home.

6. Other Considerations:

  • Rebates are typically assigned to the builder at the time of purchase, reducing the purchase price of the home.
  • If the rebate is not assigned to the builder, the purchaser can apply for the rebate directly from the CRA.

Specific eligibility criteria and rebate amounts may vary, so it’s crucial to review the terms and conditions carefully.