New House Hst Calculator Ontario
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Reviewed by Calculator Editorial Team
When buying a new home in Ontario, understanding how Harmonized Sales Tax (HST) applies is crucial. This calculator helps you determine the HST amount for your new house purchase, ensuring you're prepared for the full cost of your home.
How HST Works for New Homes in Ontario
Harmonized Sales Tax (HST) is a consumption tax applied to the sale of new homes in Ontario. The rate varies depending on the type of property and whether it's a new or resale home.
Key Points About HST for New Homes
- HST is charged on the purchase price of the home
- Standard rate is 13% for most new homes
- Some new homes may be exempt from HST
- HST is collected by the seller and remitted to the government
For new homes, the HST rate is typically 13%. This means if you buy a new home for $500,000, you'll pay an additional $65,000 in HST (13% of $500,000).
HST Exemptions for New Homes
While most new homes are subject to HST, there are some exemptions:
- Homes under $400,000 in value
- Certain types of new construction
- Homes built by certain government programs
How to Use the HST Calculator
Our HST calculator makes it easy to determine the HST amount for your new home purchase. Here's how to use it:
- Enter the purchase price of your new home in the "Home Price" field
- Select whether the home is a new construction or resale property
- Click the "Calculate" button to see your HST amount
- Review the detailed breakdown of your HST calculation
HST Calculation Formula
HST Amount = Home Price × HST Rate
Where HST Rate is typically 13% for new homes in Ontario
Example Calculation
Let's look at an example to understand how HST works for a new home purchase in Ontario.
| Description | Amount |
|---|---|
| Home Price | $450,000 |
| HST Rate (13%) | 13% |
| HST Amount | $58,500 |
| Total Cost | $508,500 |
In this example, buying a new home for $450,000 would result in $58,500 in HST, bringing the total cost to $508,500.
Frequently Asked Questions
The standard HST rate for new homes in Ontario is 13%. However, some properties may be exempt or subject to different rates.
No, HST is an additional amount that's calculated on the purchase price and added to the total cost of the home.
Yes, some new homes under $400,000 in value may be exempt from HST, as well as certain types of new construction.
HST is collected by the seller and remitted to the government. The buyer pays the HST amount to the seller at closing.