HST Rebate Calculator | Vancouver Real Estate

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Misconceptions and the Need for an HST Calculator for New Homes and Presales in Vancouver!

When the Harmonized Sales Tax (HST) replaced British Columbia’s Provincial Sales Tax (PST) and the Federal Goods and Services Tax (GST) July 1st, 2010 there was a LOT of confusion among those interested in Vancouver Real Estate to say the least!

One of the greatest misconceptions about the HST was that the Harmonized Sales Tax was payable on all real estate transactions in BC.

Fortunately, HST is only payable on new properties in British Columbia.

I speak to a lot of people about Presales in Vancouver and a constant question I hear is “Do I have to pay the full 12% on any new property or presale in Vancouver?” to which I answer “No, there is an HST Rebate in BC.” The next question is a toughie and is always “How much is the HST Rebate on new property in BC?” which until recently I would answer with “I don’t know exactly, best to ask your accountant…” Not anymore!

I found this great Net Harmonized Sales Tax (HST) and Net Property Transfer Tax Calculator that actually calculates the NET taxes payable on a new home purchase here in BC.

This tool calculates the HST rebate as well as the First Time Home Buyers Exemption for BC Property Transfer Tax. Remember, I am not an accountant and I am NOT giving tax advice. Confirm all tax details and calculations with your accountant.

How Much HST will be payable on New Properties in Vancouver?

The REBGV recently sent out a publication on the Top 25 Grants for Property Buyers and Owners which had the following synopsis of the HST rebate on new Owner Occupied Primary Residences:

“Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250”

and new Revenue Properties:

“Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit”

So if you’re buying a pre sale condo in Vancouver for investment or to live in or you are purchasing a new property or having a house built for you, the above rules apply.

 

*** PLEASE NOTE *** This calculator is for entertainment purposes only! Please consult an accountant with any and all HST rebate, PTT, or HST Calculations!

Looking for information on British Columbia’s PTT? Check out my video on Property Transfer Tax!

First Time Home Buyer in Vancouver? Check out these Videos for First Time Buyers!

Looking for advice on how to sell a Condo in Vancouver? Check out these Videos on How to Sell a Vancouver Condo!

I ENCOURAGE COMMENTS & WOULD LOVE TO HEAR YOUR THOUGHTS & QUESTIONS BELOW!

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  Comments: 22


  1. I’m thinking of buying a newly constructed half duplex and using it as a rental. What is the hst payable on a $235,000 purchase? Is there a rebate/discount if I do not live there?


  2. Hi Gord,

    Good to hear from you and thank you very much for asking.

    According to the HST Rebate Calculator above (which is for entertainment purposes only and should not be relied on, please consult an accountant!) the HST would be $28,200 and the BC HST Rebate would be $11,750 for a Net BC HST payable of $16,450.

    Please do speak to your accountant before making any investment property purchases as you may be able to defer the HST and you also want to know the tax implications of the rental income on your personal tax and financial situation.

    What are your thoughts?

    Looking forward to hearing from you!


  3. PS Thats a great price! Where is the property located?


    • Nanaimo. This is a pre-sale price, other units are $255,000 plus HST. Complex is 2 duplexs or 4 units each 1333 sq. ft. 1.5 baths 3 bds, single garage all appliances. Close to all levels of school, shopping and VIU (Vancouver Island University ).


  4. Hi Gord,

    Sounds like good value.

    How much are average rents per month there?


  5. Good program Mike. One que… I demolished an old house and constructed a new one on the property…. so what happens regarding the property transfer tax?
    Thank you
    j


  6. Hi Jim,

    Good to hear from you and thank you very much for your question and the kind words!

    That is a very good question and unfortunately I am not qualified to answer it (and I frankly don’t know the answer).

    I would suggest asking an Accountant and or a Tax Lawyer. I don’t think they would charge you all that much to answer that question.

    Are you planning on selling the house?

    Speak soon!

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