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As always with government and taxation its never simple, but here is a breakdown on the HST transition:
The Province announced the HST Transition rules on February 17, 2012 as the Province transitions back to the PST/ GST system on April 1, 2013.
Used Residential Homes (most resales) are, and remain, exempt from HST.
1. Under the current system, there is no additional rebate for new homes greater than $525,000 – Effective April 1, 2012, for homes completing prior to April 1, 2013, this rebate threshold has been increased to $850,000, meaning that the maximum rebate available (for homes worth 850k) is $42,500. This provincial portion HST rebate will also be available to secondary or vacation residences located outside the lower mainland.
Effective HST on Homes (Primary Residence) - April 1 2012 to April 1 2013
| Purchase Price |
Gross HST (12%) |
Rebate Available |
NET Purchase Price |
| $100,000.00 |
$12,000.00 |
$6,800.00 |
$105,200.00 |
| $150,000.00 |
$18,000.00 |
$10,200.00 |
$157,800.00 |
| $200,000.00 |
$24,000.00 |
$13,600.00 |
$210,400.00 |
| $250,000.00 |
$30,000.00 |
$17,000.00 |
$263,000.00 |
| $300,000.00 |
$36,000.00 |
$20,400.00 |
$315,600.00 |
| $350,000.00 |
$42,000.00 |
$23,800.00 |
$368,200.00 |
| $400,000.00 |
$48,000.00 |
$23,150.00 |
$424,850.00 |
| $450,000.00 |
$54,000.00 |
$22,500.00 |
$481,500.00 |
| $500,000.00 |
$60,000.00 |
$25,000.00 |
$535,000.00 |
| $550,000.00 |
$66,000.00 |
$27,500.00 |
$588,500.00 |
| $600,000.00 |
$72,000.00 |
$30,000.00 |
$642,000.00 |
| $650,000.00 |
$78,000.00 |
$32,500.00 |
$695,500.00 |
| $700,000.00 |
$84,000.00 |
$35,000.00 |
$749,000.00 |
| $750,000.00 |
$90,000.00 |
$37,500.00 |
$802,500.00 |
| $800,000.00 |
$96,000.00 |
$40,000.00 |
$856,000.00 |
| $850,000.00 |
$102,000.00 |
$42,500.00 |
$909,500.00 |
| $900,000.00 |
$108,000.00 |
$42,500.00 |
$965,500.00 |
| $950,000.00 |
$114,000.00 |
$42,500.00 |
$1,021,500.00 |
| $1,000,000.00 |
$120,000.00 |
$42,500.00 |
$1,077,500.00 |
2. For new homes where construction begins before April 1, 2013, BUT where possession transfers after April 1, 2013, neither HST nor PST will be payable, but rather purchasers will pay a temporary, transitional provincial tax of 2% per cent on the full house price in addition to the GST payable.
3. Special Transition Tax Rebates will be available to real estate developers and home builders who commence a home prior to April 1, 2013 but where it is sold after April 1, 2013 to prevent double taxation based on the extent of completion on April 1, 2013.
| % complete April 1, 2013 |
Transition Tax Rebate to Builder |
Rebate (Ex: 500k Home) |
TTax Paid by Home Buyer (500k home) |
| <10% |
N/A |
$0 |
10000 |
| 10-25% |
1.50% |
7500 |
10000 |
| 25%-50% |
1.00% |
5000 |
10000 |
| 50%-75% |
0.50% |
2500 |
10000 |
| 75%-90% |
0.20% |
1000 |
10000 |
| >90% |
0.00% |
0 |
10000 |
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