Ontario HST on Real Estate: What's Taxed When You Buy or Sell a Home
By Hami Tahm · Updated October 2026
What is the sales tax in Ontario?
Ontario's sales tax is the 13% Harmonized Sales Tax (HST): 5% federal GST plus 8% provincial. In a home purchase it applies to a newly built home's price — $91,000 on a $700,000 new home before rebates — but not to a resale home. It also applies to realtor commission ($5,200 on a 5% commission on an $800,000 sale) and legal fees, while the CMHC insurance premium carries 8% Ontario PST instead of HST.
Ontario HST: 13% = 5% federal + 8% provincial
Ontario is one of the provinces where the federal Goods and Services Tax and the provincial sales tax are combined into one Harmonized Sales Tax. The rate is 13%: the 5% GST that applies across Canada, plus an 8% Ontario part. The Canada Revenue Agency administers it, including the new housing rebates below. In a real estate transaction, though, most of the money involved is not taxed at all — what matters is which pieces are.
| Part of the transaction | Ontario sales tax | Why |
|---|---|---|
| Resale (used) home price | None | Sales of used residential housing are exempt from GST/HST |
| New or substantially renovated home price | 13% HST, less rebates | New housing is taxable; rebates often cover most or all of it |
| Realtor commission | 13% HST | A taxable service — usually paid by the seller |
| Lawyer's fees and most disbursements | 13% HST | Taxable services |
| Home inspection, appraisal, moving | 13% HST | Taxable services |
| CMHC mortgage insurance premium | 8% Ontario PST (not HST) | Insurance premiums are HST-exempt; Ontario charges PST on them |
| Land transfer tax | None | LTT is itself a tax, not a taxable supply |
HST on a new home in Ontario — and the rebates that offset it
A newly built home is the one purchase where HST lands on the price itself: $91,000 on a $700,000 home before any rebate. Three sets of rebates reduce it, and builders normally quote prices with HST included and credit the rebates you qualify for on closing — so for a home you will live in, the rebate usually shows up as a lower all-in price rather than a cheque.
- Ontario Enhanced New Housing Rebate. For an agreement of purchase and sale with the builder signed between April 1, 2026 and March 31, 2027, on a home that will be a primary residence: relief on the full 8% provincial part up to $1 million (a flat $80,000 from $1 million to $1.5 million), plus an Ontario top-up equal to the 5% federal part (up to $50,000). Not limited to first-time buyers. Between $1.5 million and $1.85 million the relief declines, and above $1.85 million only the standard $24,000 rebate remains.
- First-time home buyers' rebates. The federal FTHB GST/HST rebate refunds up to 100% of the 5% federal part on a new home up to $1,000,000 (maximum $50,000), phased out to zero at $1,500,000, for agreements signed from March 20, 2025 and before 2031. Ontario's matching first-time home buyers' rebate covers up to $80,000 of the provincial part under the same conditions. These are not tied to the enhanced rebate's one-year window.
- Standard new housing rebates. Ontario's long-standing rebate is 75% of the 8% provincial part, up to $24,000 at any price. The federal new housing rebate (36% of the GST, up to $6,300) phases out completely by a $450,000 price, so it rarely applies in Ontario.
| New home price (before HST) | HST at 13% | Rebates — agreement signed April 1, 2026 – March 31, 2027 | Net HST — in that window | Rebates — signed outside the window, repeat buyer | Net HST — outside the window |
|---|---|---|---|---|---|
| $500,000 | $65,000 | $65,000 | $0 | $24,000 | $41,000 |
| $700,000 | $91,000 | $91,000 | $0 | $24,000 | $67,000 |
| $900,000 | $117,000 | $117,000 | $0 | $24,000 | $93,000 |
| $1,000,000 | $130,000 | $130,000 | $0 | $24,000 | $106,000 |
| $1,200,000 | $156,000 | $130,000 | $26,000 | $24,000 | $132,000 |
| $1,500,000 | $195,000 | $130,000 | $65,000 | $24,000 | $171,000 |
Rental and investment purchases are different: the builder cannot credit the rebate, so the full HST is due on closing and the New Residential Rental Property rebate is claimed from the CRA afterwards. Confirm your own eligibility with your builder, lawyer or the CRA before relying on any rebate.
Resale homes: no HST on the price
Buying an existing home from another owner? There is no HST on the purchase price. Your sales-tax exposure is limited to services — legal fees, inspection, moving — and the PST on a CMHC premium if your down payment is under 20%. The big closing cost on an Ontario resale is land transfer tax instead: see the Ontario land transfer tax calculator.
HST on real estate commission
Realtor commission is a taxable service, so HST is added on top. At a 5% commission on an $800,000 sale, the commission is $40,000 and the HST is $5,200 — $45,200 in total, or 5.65% of the price. Commission rates in Ontario are not regulated; 5% is a common starting point, not a set rate. Run your own numbers on the Ontario real estate commission calculator or, for everything a seller pays, the cost of selling a house calculator.
HST on legal fees and other closing services
A real estate lawyer's fees and most of their disbursements carry 13% HST — $260 on a $2,000 legal bill. The same applies to a home inspection, an appraisal and movers. Land transfer tax itself is not subject to HST.
CMHC premium: 8% PST, not HST
Mortgage default insurance premiums are exempt from HST, but Ontario charges 8% provincial sales tax on them. The premium is usually added to your mortgage; the PST cannot be, so it is paid in cash on closing. With the minimum $35,000 down on a $600,000 home, the premium is $22,600 and the PST is $1,808. Check your own figure with the CMHC insurance calculator.
Frequently asked questions
- What is the sales tax in Ontario?
- Ontario charges 13% Harmonized Sales Tax (HST) on most goods and services. It combines the 5% federal GST and an 8% provincial part into a single tax collected by the Canada Revenue Agency. Ontario has no separate retail sales tax on most purchases, but it does charge 8% provincial sales tax on some insurance premiums, including the CMHC mortgage default insurance premium.
- Do you pay HST when buying a house in Ontario?
- Only on a newly built (or substantially renovated) home. The sale of a resale home — used residential housing — is exempt from HST, so there is no HST on its price. On a new home, 13% HST applies to the price ($91,000 on $700,000), but new housing rebates reduce it and builders normally quote prices with HST included, crediting the rebates on closing. Either way you still pay HST on services such as legal fees.
- How much is the HST rebate on a new home in Ontario?
- It depends on the price, the buyer and when the agreement was signed. Under the Ontario Enhanced New Housing Rebate, for an agreement with the builder signed between April 1, 2026 and March 31, 2027 on a home that will be your primary residence, the relief on a $700,000 home is $91,000 — the full 13% — and it is capped at $130,000 on homes up to $1.5 million. Outside that window a repeat buyer gets the standard Ontario new housing rebate of up to $24,000. First-time buyers can also claim the federal first-time home buyers' GST/HST rebate (up to $50,000) and the Ontario first-time home buyers' rebate (up to $80,000 of the provincial part).
- Is there HST on real estate commission in Ontario?
- Yes. Realtor commission is a taxable service, so 13% HST is added to it. At a 5% commission on an $800,000 sale, the commission is $40,000 plus $5,200 HST — $45,200 in total, usually paid by the seller out of the sale proceeds. Commission rates are not regulated and are negotiable.
- Is there HST on the CMHC insurance premium in Ontario?
- No — the CMHC premium is not subject to HST, but Ontario charges 8% provincial sales tax on it. The premium itself is usually added to the mortgage; the PST cannot be, so it is paid in cash on closing. With the minimum $35,000 down on a $600,000 home, the premium is $22,600 and the PST is $1,808.
- Do you pay HST on legal fees when buying a home in Ontario?
- Yes. A real estate lawyer's fees and most disbursements are taxable services, so 13% HST is added — $260 on a $2,000 legal bill. Land transfer tax itself is not subject to HST.
Sources
- CRA — GST/HST rates by province
- CRA — Guide RC4028, GST/HST New Housing Rebate
- CRA — GST/HST Notice 346, Ontario Enhanced New Housing Rebate
- CRA — First-time home buyers' GST/HST rebate (incl. the Ontario FTHB rebate)
- Ontario Ministry of Finance — Expanding Ontario's HST rebates for new homes (25 Mar 2026)
- CMHC — premium information (PST on premiums)
For information only, not tax advice. Rebate eligibility depends on dates, occupancy and buyer history that only you, your builder and the CRA can confirm.
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