HST NEW HOMES CALCULATIONS

Posted by on Sep 11, 2013 in Articles | Comments Off on HST NEW HOMES CALCULATIONS

HST NEW HOMES CALCULATIONS

Provincial Rebate = 75% of 8% (6%) x price (w/o hst) to a max of 400K ($24,000 rebate).

Federal Rebate = 36% of 5% x price (w/o hst) to a max of 350K ($6,300 rebate)

 For the $350,000-$450,000 range, I found this worksheet PDF from Canada Revenue Agency, which has an example of calculating the federal rebate for homes in phase-out range: $6300 * ($450,000 – purchase_price)/$100,000

After playing trial & error with numbers in a spreadsheet, I arrived at the following:

     Original purchase price:      378,067.08

     Ontario part of HST (8%):      30,245.37

     Ontario part of HST rebate:   (22,684.03)

     Federal part of HST (5%):      18,903.35

     Federal part of HST rebate:    (4,531.77)

                                  ===========

     Total:                        400,000.00

So, assuming the HST less rebates are both baked into a $400,000 new Ontario condo sale price, then the price without HST is likely $378,067.08.