Hst Calculator Real Estate

When buying or selling real estate in Canada, understanding HST (Harmonized Sales Tax) is crucial. This calculator helps you determine the HST amount on a property sale and the final sale price including tax.

What is HST in Real Estate?

HST (Harmonized Sales Tax) is a combined sales tax in Canada that replaces the previous system of provincial sales tax and goods and services tax (GST). For real estate transactions, HST is typically applied to the purchase price of the property.

The HST rate varies by province. In most provinces, the rate is 13%, while in Ontario and Quebec, it's 15%. The calculator accounts for these different rates.

Note: HST is not applied to the first $40,000 of the purchase price in Ontario and Quebec. This exemption applies to the first $40,000 of the purchase price of a principal residence.

How to Calculate HST for Real Estate

To calculate HST for a real estate transaction:

Determine the purchase price of the property
Select the province where the property is located
Apply the appropriate HST rate
Calculate the HST amount and final sale price

Formula: HST Amount = Purchase Price × HST Rate

Final Sale Price = Purchase Price + HST Amount

Use our calculator to perform these calculations quickly and accurately.

Example Calculation

Let's calculate HST for a property sale in Ontario:

Purchase Price: $500,000
HST Rate: 15%
HST Amount: $500,000 × 0.15 = $75,000
Final Sale Price: $500,000 + $75,000 = $575,000

Note that in Ontario, the first $40,000 is exempt from HST for principal residences. For this example, we're assuming the entire purchase price is taxable.

Current HST Rates

The following table shows the current HST rates by province:

Province	HST Rate	Notes
Ontario	15%	First $40,000 exempt for principal residence
Quebec	15%	First $40,000 exempt for principal residence
Alberta	0%	No HST on real estate
British Columbia	12%	Standard rate
Manitoba	12%	Standard rate
Saskatchewan	11%	Standard rate
New Brunswick	15%	Standard rate
Nova Scotia	15%	Standard rate
Newfoundland and Labrador	15%	Standard rate
Prince Edward Island	15%	Standard rate
Northwest Territories	5%	Standard rate
Yukon	5%	Standard rate
Nunavut	5%	Standard rate

Always verify the current HST rates with the Canada Revenue Agency before making any real estate transactions.

Frequently Asked Questions

What is the difference between HST and GST?

HST (Harmonized Sales Tax) is a combined sales tax that replaces the previous system of provincial sales tax and GST (Goods and Services Tax). HST is applied to the purchase price of real estate in most provinces.

Is HST applied to the entire purchase price?

In most provinces, HST is applied to the entire purchase price. However, in Ontario and Quebec, the first $40,000 is exempt from HST for principal residences.

How do I pay HST on a real estate transaction?

HST is typically paid by the buyer at closing. The amount is calculated based on the purchase price and the applicable HST rate. The seller may be responsible for paying the HST if they are the ones selling the property.

Can I claim a refund for HST paid on a real estate transaction?

In most cases, HST paid on a real estate transaction is not refundable. However, there may be exceptions for certain types of properties or transactions. It's best to consult with a tax professional for specific advice.