Oakville, ON Phone: 905-845-4267 Mobile: 905 330 9266 Email Debra

What TAXES are resale homes subject to?


 

We all pay taxes, and when you are talking purchases in the hundreds of thousands of dollars, you'd be wise to understand exactly which taxes your purchase is subject to!

Up until the introduction of the HST, most buyers were pretty comfortable understanding the closing costs associated with purchasing a home. When this new tax came into effect, that comfort level changed dramatically. Many people were under the mistaken impression that their purchase would be subject to 13% HST. A pretty scary thought and enough to cause you to reconsider your purchase!  The good news is that the sale of a RESALE home is NOT subject to HST.

While it is important to note that any "service" associated with purchasing the home -  for example lawyers fees on closing costs, are subject to HST. There is NO HST payable on the value of the home.

For more info on the HST in Ontario Real Estate matters visit:  Ontario HST Information

All RESALE homes in Ontario are subject to a Land Transfer Tax. This has not changed, and it is a significant enough tax on its own so you should be considering this cost in your calculations. It works on a scale and is a somewhat complicated formula - your best bet is to use an Ontario Land Transfer Tax Calculator.  Use this link to see what your land transfer tax would be (note that properties in Oakville and Mississauga are NOT subject to the Toronto portion, but properties in Toronto, including Etobicoke or other parts of "Toronto" are subject to TWO taxes):   ONTARIO LAND TRANSFER TAX CALCULATOR  

Please note that New Homes purchased through builders are subject to HST and this amount should be carefully understood and considered when purchasing a BRAND new home. Please visit the attached link to better understand how this is calculated for new home purchases.  Ontario HST Information New Home Purchases