The 8% Ontario sales tax and the 5% Federal GST will be blended into a single 13% value-added Harmonized Sales Tax (HST) starting July 1, 2010.

HST will not apply on the purchase price of re-sale homes.

Purchasers of newly constructed homes under $400,000 would not be subject to an additional tax burden. Buyers of new homes valued between $400,000 and $500,000 could claim a proportional rebate.

Home buyers and sellers will pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs effective July 1st, 2010, adding about $1,500 in new taxes to the average residential real estate transaction ($302,354) in Ontario.

For homeowners the HST will also add 8% additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of landscaping and the cost of snow removal.

Additional point-of-sale exemptions announced November 12, 2009:

- Print newspapers
- Qualifying prepared food and beverages that are ready for immediate consumption and are sold for a total price of not more than $4.00
- Used vehicles purchased privately (not from an HST registrant) would still be subject to a retail sales tax of 8%.


As part of the proposed sales tax reform, cash payments would be provided to Ontario tax filers, in each of June and December 2010, and June 2011.

Eligible families with income of less than $160,000 would receive 3 payments totalling $1,000.

Eligible individuals who earn less than $80,000 would get 3 payments totalling $300.

To qualify for the 2 payments in 2010, a 2009 tax return would have to be filed.

To qualify for the 2011 payment, a 2010 tax return would have to be filed.


All changes are subject to legislative approval.