Saturday, October 9, 2010

Harmonized Sales Tax...Important Info!

Rachael from the Ontario Ministry of Revenue sent me an email to share with you all about the Harmonized Sales Tax (HST). Read on...

As you may already know, on July 1st the harmonized sales tax (HST) began in Ontario. Based on the focus of your website, I thought the information below might be helpful to provide your readers.

Did you know?

About 93 per cent of all homes sold in Ontario are not subject to an additional tax amount under the HST.

It’s important to note, the HST is not charged on resale homes.

In addition it is not charged on:
• home insurance
• mortgage interest costs

HST is charged on:
• real estate commissions
• legal fees
• new homes

(The full list of what changes and what doesn’t change is available on the website (23 languages), PDF format and for free download as a mobile application. )

There are also many tax credits and incentives available that benefit homebuyers:

New housing rebate
New rental housing rebate
• Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits.
• Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year.
• Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent.
• Delivering an additional $500 a year to help senior homeowners pay their property taxes.

For more information about the HST visit (FR) or (EN).

Thank you,