On Monday, April 1, the Harmonized Sales Tax (HST) will be replaced by the federal Goods and Services Tax (GST) and the BC Provincial Sales Tax (PST).
What this means to you:
As we move back to the GST and PST tax structure, it’s important to remember that:
- sales tax on a new home will be reduced to 5% GST plus 2% BC Transition Tax (total 7%) from the current 12%; and
- tax on real estate commissions will be reduced to 5% from the current 12%.
These reduced tax rates apply to all transactions that are payable on or after April 1.