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Here are examples of common products and services and how they will be affected by the HST.
HOME PURCHASES:
|
GST-taxable
before July 1, 2010
|
RST-taxable
before July 1, 2010
|
Is there a change to
the amount of tax payable
under the HST?
|
|
New Homes up to $400,000 |
5% |
No RST |
No change* |
News Homes over $400,000 |
5% |
No RST |
Yes** |
Resale Homes |
No GST |
No RST |
No HST |
Real Estate Commissions |
5% |
No RST |
Yes (changes to 13%) |
The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the RST system. However, applicable RST on building supplies is embedded in the price of the home.
** New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.
HOME SERVICES:
93 per cent of all homes sold
in Ontario, on average, will not be subject to an additional tax amount
under HST.(The comprehensive tax
package provides Ontarians with $11.8 billion in tax relief over three
years.)
|
GST-taxable
before July 1,
2010
|
RST-taxable
before July 1,
2010
|
Is there a change to
the
amount of tax payable
under the HST?
|
Cable Television Services |
5% |
8% |
No (remains 13%) |
Cell Phone Services |
5% |
8% |
No (remains 13%) |
Electricity and Heating (e.g., Natural Gas/Oil for Home) |
5% |
No RST |
Yes (changes to 13%) |
Home Maintenance Equipment |
5% |
8% |
No (remains 13%) |
Home Insurance |
No GST |
8% |
No (remains 8%) |
Home Phone Services |
5% |
8% |
No (remains 13%) |
Home Service Calls to Repair Free-Standing Appliances such as Stoves, Refrigerators, Washers, Dryers, and Televisions |
5% |
8% |
No (remains 13%) |
Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc. |
5% |
No RST |
Yes (changes to 13%) |
Internet Access Services |
5% |
No RST |
Yes (changes to 13%) |
Landscaping, Lawn-Care and Private Snow Removal |
5% |
No RST |
Yes (changes to 13%) |
Municipal Water |
No GST |
No RST |
No HST |
BANKING AND INVESTMENTS:
(In Atlantic Canada, investment in machinery and equipment rose
by more than 12 per cent following the move to a harmonized sales tax.)
|
GST-taxable
before July 1, 2010
|
RST-taxable
before July 1, 2010
|
Is there a change to
the amount of tax payable
under the HST?
|
Mortgage Interest Costs |
No GST |
No RST |
No HST |
Most Financial Services |
No GST |
No RST |
No HST |
AROUND THE HOUSE:
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GST-taxable
before July 1, 2010
|
RST-taxable
before July 1, 2010
|
Is there a change to
the amount of tax payable
under the HST?
|
Home Renovations |
5% |
No RST |
Yes (changes to 13%) |
Household Furniture |
5% |
8% |
No (remains 13%) |
Barbeques, Lawnmowers, Snowblowers, Sprinklers |
5% |
8% |
No (remains 13%) |
Building Materials (e.g., Lumber, Concrete Mix) |
5% |
8% |
No (remains 13%) |
Refrigerators and Freezers |
|
|
5% |
8% |
No (remains 13%) |
Books (including Audio Books) |
5% |
No RST |
No (remains 5%) |
Cleaning Products |
5% |
8% |
No (remains 13%) |
Crafting Supplies |
5% |
8% |
No (remains 13%) |
Newspapers |
5% |
No RST |
No (remains 5%) |
Magazines Purchased at Retail |
5% |
8% |
No (remains 13%) |
Magazines Purchased by Subscription |
5% |
No RST |
Yes (changes to 13%) |
Landscaping Materials
Including Sod, Seeds, Plants |
5% |
8% |
No (remains 13%) |
Laundry Detergent, Fabric Softeners |
5% |
8% |
No (remains 13%) |
Linens (e.g., Blankets, Towels, Sheets) |
5% |
8% |
No (remains 13%) |
Office Supplies, Stationary |
5% |
8% |
No (remains 13%) |
Outdoor Play Equipment
(e.g., Swing Set, Sandbox, Slides) |
5% |
8% |
No (remains 13%) |
|
5% |
8% |
No (remains 13%) |
Pre-packaged Computer Software |
|
5% |
8% |
No (remains 13%) |
Tents, Sleeping Bags, Camping Supplies |
5% |
8% |
No (remains 13%) |
Tools |
5% |
8% |
No (remains 13%) |
Toys (e.g., Puzzles, Games, Action Figures, Dolls,
Playsets) |
5% |
8% |
No (remains 13%) |
LEASES AND RENTALS:
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GST-taxable
before July 1, 2010
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RST-taxable
before July 1, 2010
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Is there a change to
the amount of tax payable
under the HST?
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Condo Fees |
No GST* |
No RST* |
No HST* |
Residential Rents |
No GST |
No RST |
No HST |
Hockey Rink and Hall Rental Fees |
5% |
No RST |
Yes (changes to 13%) |
Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if applicable.
ACCOMMODATION AND TRAVEL
CLOTHING AND FOOTWEAR
ELECTRONICS
FOOD AND BEVERAGES
(6.6 million families and individuals in Ontario will receive sales tax transition benefits in three instalments over one year beginning in June 2010.) HEALTH PRODUCTS AND SERVICES
MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT
MOTORIZED VEHICLES
PROFESSIONAL
AND PERSONAL SERVICES
TOBACCO
To learn more about the benefits of HST visit www.ontario.ca/taxchange. You can also call 1 800 337-7222, teletypewriter (TTY) 1 800 263-7776.
For more information, you can also contact the Canada Revenue Agency. Visit the CRA website at www.cra.gc.ca/harmonization or call 1 800 959-5525.
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