Hst Home Purchase Ontario Calculator
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Reviewed by Calculator Editorial Team
When buying a home in Ontario, understanding the Harmonized Sales Tax (HST) is crucial. This calculator helps you determine how much HST you'll pay on your home purchase, including the total purchase price after tax.
What is HST in Ontario?
The Harmonized Sales Tax (HST) is a value-added tax in Ontario that applies to most goods and services, including real estate transactions. The current HST rate in Ontario is 13%.
HST is collected by the seller and remitted to the government. As a buyer, you'll pay the HST on top of the home's purchase price.
Key Points About HST
- HST is applied to the total purchase price of the home
- It's not a separate tax but part of the total price
- The rate has been 13% since 2014
- Some exemptions may apply to certain home purchases
How HST Applies to Home Purchases
When you buy a home in Ontario, the HST is included in the total purchase price. Here's how it works:
- The seller adds 13% HST to the home's listed price
- This becomes the total purchase price you pay
- The HST amount is then remitted to the government
- You receive a tax receipt for the HST portion
HST Amount = Home Price × HST Rate
For example, if a home costs $400,000 before tax, the total purchase price would be $452,000 ($400,000 + $52,000 HST).
Example Calculation
Let's say you're buying a home for $350,000 in Ontario:
- Home price: $350,000
- HST rate: 13%
- HST amount: $350,000 × 0.13 = $45,500
- Total purchase price: $350,000 + $45,500 = $395,500
This means you'll need to secure a mortgage for $395,500 to buy this home.
Frequently Asked Questions
Is HST included in the home price or added separately?
HST is added to the home price to create the total purchase price. The seller includes the HST in the final amount you pay.
Can I get a refund on HST paid on a home purchase?
No, HST paid on a home purchase is not refundable. It's considered part of the purchase price and is remitted to the government.
Are there any exemptions for HST on home purchases?
There are limited exemptions, such as for certain types of residential properties or specific government programs. Most home purchases are subject to HST.
How does HST affect my mortgage payments?
HST increases your total mortgage amount. For example, a $300,000 home with 13% HST would require a mortgage for $339,000.