Quick answer
Ontario’s HST rate is 13%. Whether it applies to a real estate purchase depends on what you are buying and who is selling. The Canada Revenue Agency (CRA) says the sale of a previously occupied home by someone who is not a builder is generally exempt, so there is usually no HST on a resale home. A sale of a newly built or substantially renovated home by a builder is generally taxable, and a sale of commercial real property is taxable unless a specific exemption applies.
Rebates can reduce the HST on a new home for eligible buyers, but the conditions depend on the price and the dates of your agreement. Land transfer tax is not calculated on the HST you pay. Ask your lawyer to review the HST wording in your agreement of purchase and sale before you sign.
HST questions come up in almost every real estate deal that is not an ordinary resale: a new condo, an assignment, a commercial building. A price “plus HST” and a price “including HST” are very different amounts. This article explains when HST applies, how rebates work for new homes, and what to check. For the tax on the transfer itself, see our land transfer tax guide.
What Is the HST Rate in Ontario?
The CRA’s rate table lists the combined GST/HST rate in Ontario as 13% (see CRA, GST/HST rates). The CRA’s rebate publications describe it as a federal part of 5% and a provincial part of 8%, which matters because new home rebates are calculated separately on each part.
Is There HST on a Resale Home in Ontario?
Generally, no. CRA GST/HST Memorandum 19.2.1 says the sale of a previously occupied residential complex, other than one that is substantially renovated, is generally exempt when the seller is not a builder. It says this applies in most cases where previously occupied housing is sold, including a resale of an individual’s personal residence and a resale of rental housing by someone other than a builder (see CRA Memorandum 19.2.1, Residential Real Property – Sales, paragraphs 26 and 27).
The CRA adds one exception: the exemption does not apply if the seller has claimed input tax credits for the last acquisition of the residential complex or for improvements to it. Whether a particular sale is exempt can depend on the seller’s history, so your lawyer should check the HST terms of your agreement.
Is There HST on a New Home?
The CRA says that in most cases the sale by a builder of a newly constructed or substantially renovated residential complex is a taxable supply (Memorandum 19.2.1, paragraph 3). The builder’s agreement says whether the price includes HST and how any rebate is handled, so read that clause with your lawyer before you sign. See our guide to buying a new home with a Tarion warranty and our pre-construction condo service.
What does “net of HST” mean?
In a price clause, “net of HST” generally refers to an amount before HST is added, and “including HST” refers to an amount that already contains it. What your agreement means turns on its exact wording, so ask your lawyer to explain the clause and to confirm the total you will pay.
New Home Rebates
Several rebates can reduce the HST on a new or substantially renovated home. They depend on the price of the home, the dates of your agreement and whether the home will be a primary residence. These points are from the CRA’s publications, checked on November 13, 2026:
- GST/HST new housing rebate. The CRA says this rebate is generally 36% of the GST or the federal part of the HST, to a maximum of $6,300. It is reduced for homes valued between $350,000 and $450,000, and no rebate is available at $450,000 or more (see CRA Memorandum 19.3.10).
- First-time home buyers’ GST/HST rebate. Together with the new housing rebate where it applies, it gives 100% of the federal part of the HST on new homes valued up to $1 million, reduced between $1 million and $1.5 million, and none at or above $1.5 million. The Ontario first-time home buyers’ rebate works the same way for the provincial part. The CRA says the GST/HST rebate is available where the agreement with the builder was entered into on or after March 20, 2025 and before 2031.
- Ontario enhanced new housing rebate. Together with the Ontario new housing rebate, it gives combined relief of up to $80,000 of the 8% provincial part of the HST on a new or substantially renovated home valued up to $1,850,000, for use as the buyer’s or a relation’s primary place of residence. It is generally available where the agreement with the builder was entered into from April 1, 2026 to March 31, 2027. Up to $1 million the rebate is the full provincial part (to $80,000), from $1 million to $1.5 million it is a flat $80,000, and above $1.5 million and below $1.85 million it is partial. At $1.85 million and above, only the Ontario new housing rebate of up to $24,000 is available (see CRA Notice 346).
- Ontario new home affordability payment. The CRA says it is administered by the Province, provides up to $50,000 (up to 100% of the 5% federal part of the HST) to individuals who are also entitled to the Ontario enhanced rebate, and is reduced by the federal part of any new housing rebate or first-time home buyers’ rebate you receive.
The total of all rebates of the 8% provincial part cannot exceed the lesser of $80,000 and the provincial part of the HST payable. Rebate rules change and depend on the dates, so confirm the position for your own agreement before you rely on it. A builder may pay or credit a rebate to you, and your lawyer will check how that is done on closing.
HST on an Assignment Sale
An assignment of a pre-construction agreement is its own HST question. For assignment agreements entered into after May 6, 2022, HST applies to the assignment even when an individual sells, and the dates of both agreements can affect rebates. See our full assignment sale guide.
HST on Commercial Real Property
The CRA says a sale of real property is a commercial activity and is taxable unless it is specifically exempted. It says most of the exemptions are in Part I of Schedule V of the Excise Tax Act and generally cover sales of previously occupied residential complexes, certain leased land, farmland sold to related persons, and real property sold by an individual or a personal trust, with certain exceptions (see CRA Memorandum 19.4.1, Commercial Real Property). If you are buying or selling a commercial property, confirm whether HST applies, who collects it and how the price clause deals with it before you sign. See our commercial real estate sale service and our guide to the commercial lease agreement.
HST and Land Transfer Tax
The Province’s guidance says that when HST applies to the purchase of land, the value of the consideration does not include the amount of HST paid on the purchase price (see Ontario.ca, calculating land transfer tax). In other words, land transfer tax is not calculated on the HST on the price. Our land transfer tax guide explains the rates, and our closing costs guide shows how the costs fit together.
HST on Your Lawyer’s Fees
HST at 13% also applies to legal fees in Ontario, and your statement of account shows how it applies to each item. See our lawyer fees guide.
What Your Lawyer Checks
- Whether the agreement says the price includes or excludes HST, and the total you will pay.
- For a resale, whether the seller is a builder or has claimed input tax credits that could affect the exemption.
- For a new home, how the builder deals with rebates, and whether you qualify on your dates and price.
- For an assignment, how the HST and rebates are affected by the dates of both agreements.
- For a commercial property, whether HST applies and who is responsible for collecting and paying it.
- How the HST affects your closing costs and the statement of adjustments.
Frequently Asked Questions
Is there HST on a resale home in Ontario?
Generally not. The CRA says the sale of a previously occupied residential complex, other than one that is substantially renovated, is generally exempt when the seller is not a builder. It does not apply if the seller has claimed input tax credits on the last acquisition or on improvements, so have your lawyer check.
Is there HST on a new home in Ontario?
Generally yes. The CRA says a sale by a builder of a newly constructed or substantially renovated residential complex is a taxable supply in most cases. The HST rate in Ontario is 13%, and rebates may reduce it for eligible buyers.
What is the HST rate in Ontario?
13%, according to the CRA’s rate table. The CRA’s rebate publications treat it as a federal part of 5% and a provincial part of 8%.
What does net of HST mean?
It generally refers to an amount before HST is added, as opposed to a price that includes it. What it means in your contract depends on the wording, so ask your lawyer to confirm the total you will pay.
Do first-time buyers get an HST rebate on a new home?
They may. The CRA says the first-time home buyers’ GST/HST rebate is available where the agreement with the builder was entered into on or after March 20, 2025 and before 2031, and gives up to 100% of the federal part on homes valued up to $1 million, reduced to $1.5 million. Conditions apply.
Is there HST on commercial property in Ontario?
The CRA says a sale of real property is a commercial activity and taxable unless a specific exemption applies. Confirm whether HST applies to your deal and who collects it before you sign.
Do I pay land transfer tax on the HST?
No. The Province says that when HST applies to the purchase of land, the value of the consideration does not include the HST paid on the purchase price.
Is HST charged on an assignment sale?
Yes, for assignment agreements entered into after May 6, 2022 on a new house or condo unit, including when an individual sells. See our assignment sale guide for the details.
Related: our guides to assignment sales, land transfer tax, closing costs, the Tarion warranty, interim closing and the agreement of purchase and sale, and our pre-construction condo and commercial real estate sale services.
Talk to a real estate lawyer about your property. Call (647) 696-8069 or book a free consultation. We serve clients in English, Hindi and Punjabi.
Legal Information, Not Legal Advice. This article is general information about HST on real estate in Ontario, based on the Canada Revenue Agency’s GST/HST rate table, memoranda 19.2.1, 19.4.1 and 19.3.10 and Notice 346 (August 2026), and the Ontario Ministry of Finance’s land transfer tax guidance (updated April 22, 2026), checked on November 13, 2026. It is not tax advice. HST depends on the facts of each transaction and rebate rules change, so speak with a real estate lawyer and an accountant about yours.
