Hst Calculator Ontario New Homes
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Reviewed by Calculator Editorial Team
When purchasing a new home in Ontario, understanding the Harmonized Sales Tax (HST) is crucial. This calculator helps you estimate the HST you'll pay on your new home purchase, ensuring you have a clear financial picture before finalizing your transaction.
What is HST in Ontario?
The Harmonized Sales Tax (HST) is a consumption tax applied to the sale of goods and services in Ontario. It replaced the previous system of provincial sales tax (PST) and goods and services tax (GST) in 2010. For new home purchases, the HST rate applies to the total purchase price of the home.
HST is collected by the seller and remitted to the government, with the buyer paying the tax as part of the total purchase price. The tax is then distributed to various government programs and services.
How is HST calculated for new homes?
The HST for a new home purchase is calculated as a percentage of the total purchase price. The current HST rate in Ontario is 13%.
HST Formula
HST Amount = Purchase Price × HST Rate
Total Cost = Purchase Price + HST Amount
For example, if you purchase a new home for $500,000, the HST would be $65,000 (500,000 × 0.13), making the total cost $565,000.
Current HST rates for new homes
The current HST rate for new homes in Ontario is 13%. This rate applies to the total purchase price of the home, including any land transfer taxes or other fees.
Note: The HST rate may change periodically. Always verify the current rate with the Ontario government before finalizing your purchase.
How to use this HST calculator
- Enter the purchase price of the new home in the "Purchase Price" field.
- Click the "Calculate HST" button to compute the tax.
- Review the results, which include the HST amount and the total cost including tax.
- Use the "Reset" button to clear the calculator and start over.
Examples of HST calculations
Example 1: $400,000 Home Purchase
Purchase Price: $400,000
HST (13%): $52,000
Total Cost: $452,000
Example 2: $600,000 Home Purchase
Purchase Price: $600,000
HST (13%): $78,000
Total Cost: $678,000
Frequently Asked Questions
The current HST rate for new homes in Ontario is 13%. This rate applies to the total purchase price of the home.
HST is calculated as 13% of the total purchase price. For example, a $500,000 home would have $65,000 in HST.
HST is included in the total purchase price. The seller collects the tax and remits it to the government, with the buyer paying the tax as part of the total cost.
Yes, the HST rate can change periodically. It's important to verify the current rate with the Ontario government before finalizing your purchase.