Harmonized Sales Tax and Property Transfer Tax for British Columbia Real Estate
Homebuyers are often confused by the rules surrounding Harmonized Sales Tax (HST) in British Columbia. A common misconception is that HST is payable on all real estate transactions.
Fortunately, this is not the case! In BC, Harmonized Sales Tax is only payable on new homes!
Facts on BC’s HST
- BC’s HST came into effect on July 1, 2010 and is 12%.
- Only payable on BRAND NEW PROPERTIES!
- Payable on Pre-sales and Assignments that Complete after July 1, 2010.
- HST is not payable on Re-Sale Properties!
- There are HST Rebates for properties under $525K
HST Rebates in BC
The good news for people buying new properties in Vancouver is that there is an HST Rebate in BC!
So, before writing off the idea of purchasing a new home or presale, you might want to consider the actual amount of HST payable.
How much HST is payable on new properties in Vancouver?
- New Owner Occupied Primary Residences:
Buyers of new or substantially renovated homes priced up to $525,000+ are eligible for a rebate of 71.43% of the provincial portion (7%) of the HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250.
- New Revenue Properties:
Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit.
Therefore, if you are considering buying a presale condo in Vancouver to occupy or as an investment, these rules will apply to you.
Please find an HST PTT Rebate Calculator HERE
***PLEASE NOTE*** This calculator is for entertainment purposes only. Please seek the advice of an accountant for any and all calculations related to HST and PTT Calculations.