Harmonized Sales Tax (HST) and Toronto Real Estate

 Here are some common questions and answers to clarify for you:

 What Will No Longer Be PST Exempt?You will likely see an increase in the price of gasoline and heating fuels.
The following also will no longer be exempt from provincial sales tax:

What Will Remain Exempt?

 

  • Clothing and shoes for kids
  • Car seats and car booster seats 
  • Books 
  • Baby Diapers 
  • Feminine hygiene products will continue to be exempt from the provincial sales tax.
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    It’s Not All Bad!

    Basic groceries, rent fees, condo fees, prescription medication, and medical devices will remain non-taxable (PST and GST).

    Purchase of resale homes will remain exempt from PST …. however, the real estate transaction fees will be taxed.

    Will Household Expenses Rise?

    Yes, although the province says it will offer: 

    • $10.6 billion worth of tax relief over the next three years.
    • Cash payments of up to $1,000 for in 2010 and 2011 for families earning less than $160,000 a year. 
    • A new permanent $260 refundable sales tax credit for low to middle-income adults and children.
    • An enhanced refundable property tax credit for low and middle-income homeowners and tenants.
    • New homes under $400,000 would be exempt from the new blended tax. 
    • $1.1 billion in personal income tax cuts
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    When does the new tax begin?

    The new HST (Harmonized Sales Tax) will begin on July 1, 2010.

     

       

    • Electricity
    • Tobacco
    • Personal services (haircuts)
    • Membership fees for clubs and gyms
    • Newspapers and magazines
    • Taxi fares
    • Lawyers', architects' and accountants' fees
    • Real estate commissions will also be taxed
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    What is a Harmonized Sales Tax (HST)?

     

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