The federal Goods and Services Tax (GST) applies only to new construction homes and some renovated properties. The current GST rate of 5% applies to the contracted purchase price.
Primary residences may qualify for a partial rebate.
Note that in most situations, if GST is applicable, the full amount of GST will have to be paid upon closing by the buyer. The buyer will then have to apply to the federal government for the rebate and receive the funds after closing.
|Purchase Price||GST Rebate|
|less than $350,000||rebate is 36% of the 5% charged, effective net GST rate is 3.2%|
|$350,000 to $450,000||For new homes priced between $350,000 to $450,000, the GST rebate decreases by 1% for every $1,000 increase to the purchase price over $350,000. For example, if you pay $390,000 for a new home, the purchase price is $40,000 over, causing the discount to decline by 40%. Thus, the $6,300 rebate is reduced to $3,780. GST payable is: $390,000 at 5% is $19,500 less $3,780 or $15,720.|
|more than $450,000||no GST rebate offered|
(To be used as a guide only)