Comparing HST and Transition Tax for New Housing

The Province announced the HST Transition rules on February 17, 2012 as the Province transitions back to the PST/ GST system on April 1, 2013. For an overview see my post here.

If completion of New Residential Housing occurs prior April 1, 2013, the HST system with the new enhanced rebate will apply:

For Primary Residences (with federal rebate):

Purchase Price Gross HST (12%) Rebate Available Purchase Price (incl HST)
$100,000.00 $12,000.00 $6,800.00 $105,200.00
$150,000.00 $18,000.00 $10,200.00 $157,800.00
$200,000.00 $24,000.00 $13,600.00 $210,400.00
$250,000.00 $30,000.00 $17,000.00 $263,000.00
$300,000.00 $36,000.00 $20,400.00 $315,600.00
$350,000.00 $42,000.00 $23,800.00 $368,200.00
$400,000.00 $48,000.00 $23,150.00 $424,850.00
$450,000.00 $54,000.00 $22,500.00 $481,500.00
$500,000.00 $60,000.00 $25,000.00 $535,000.00
$550,000.00 $66,000.00 $27,500.00 $588,500.00
$600,000.00 $72,000.00 $30,000.00 $642,000.00
$650,000.00 $78,000.00 $32,500.00 $695,500.00
$700,000.00 $84,000.00 $35,000.00 $749,000.00
$750,000.00 $90,000.00 $37,500.00 $802,500.00
$800,000.00 $96,000.00 $40,000.00 $856,000.00
$850,000.00 $102,000.00 $42,500.00 $909,500.00
$900,000.00 $108,000.00 $42,500.00 $965,500.00
$950,000.00 $114,000.00 $42,500.00 $1,021,500.00
$1,000,000.00 $120,000.00 $42,500.00 $1,077,500.00

For Secondary Residences (with no federal rebate):

Purchase Price Gross HST (12%) Rebate Available Purchase Price (incl HST)
$100,000.00 $12,000.00 $5,000.00 $107,000.00
$150,000.00 $18,000.00 $7,500.00 $160,500.00
$200,000.00 $24,000.00 $10,000.00 $214,000.00
$250,000.00 $30,000.00 $12,500.00 $267,500.00
$300,000.00 $36,000.00 $15,000.00 $321,000.00
$350,000.00 $42,000.00 $17,500.00 $374,500.00
$400,000.00 $48,000.00 $20,000.00 $428,000.00
$450,000.00 $54,000.00 $22,500.00 $481,500.00
$500,000.00 $60,000.00 $25,000.00 $535,000.00
$550,000.00 $66,000.00 $27,500.00 $588,500.00
$600,000.00 $72,000.00 $30,000.00 $642,000.00
$650,000.00 $78,000.00 $32,500.00 $695,500.00
$700,000.00 $84,000.00 $35,000.00 $749,000.00
$750,000.00 $90,000.00 $37,500.00 $802,500.00
$800,000.00 $96,000.00 $40,000.00 $856,000.00
$850,000.00 $102,000.00 $42,500.00 $909,500.00
$900,000.00 $108,000.00 $42,500.00 $965,500.00
$950,000.00 $114,000.00 $42,500.00 $1,021,500.00
$1,000,000.00 $120,000.00 $42,500.00 $1,077,500.00

Where construction starts prior to April 1, 2013 but completion occurs after April 1, 2013, a Transition Tax will apply in addition to the federal GST component (with principal residence rebate):

Purchase Price GST (5%) Transition Tax (2%) Purchase Price (incl GST/TT)
$100,000.00 $3,200.00 $2,000.00 $105,200.00
$150,000.00 $4,800.00 $3,000.00 $157,800.00
$200,000.00 $6,400.00 $4,000.00 $210,400.00
$250,000.00 $8,000.00 $5,000.00 $263,000.00
$300,000.00 $9,600.00 $6,000.00 $315,600.00
$350,000.00 $11,200.00 $7,000.00 $368,200.00
$400,000.00 $16,850.00 $8,000.00 $424,850.00
$450,000.00 $22,500.00 $9,000.00 $481,500.00
$500,000.00 $25,000.00 $10,000.00 $535,000.00
$550,000.00 $27,500.00 $11,000.00 $588,500.00
$600,000.00 $30,000.00 $12,000.00 $642,000.00
$650,000.00 $32,500.00 $13,000.00 $695,500.00
$700,000.00 $35,000.00 $14,000.00 $749,000.00
$750,000.00 $37,500.00 $15,000.00 $802,500.00
$800,000.00 $40,000.00 $16,000.00 $856,000.00
$850,000.00 $42,500.00 $17,000.00 $909,500.00
$900,000.00 $45,000.00 $18,000.00 $963,000.00
$950,000.00 $47,500.00 $19,000.00 $1,016,500.00
$1,000,000.00 $50,000.00 $20,000.00 $1,070,000.00

If construction (on a principal residence) starts after April 1, 2013 (GST only applies, but assumed the Purchase Price is increased by 2% due to embedded PST):

Purchase Price GST (5%) PST Purchase Price (incl GST)
$100,000.00 $3,200.00 $0.00 $103,200.00
$150,000.00 $4,800.00 $0.00 $154,800.00
$200,000.00 $6,400.00 $0.00 $206,400.00
$250,000.00 $8,000.00 $0.00 $258,000.00
$300,000.00 $9,600.00 $0.00 $309,600.00
$350,000.00 $11,200.00 $0.00 $361,200.00
$400,000.00 $16,850.00 $0.00 $416,850.00
$450,000.00 $22,500.00 $0.00 $472,500.00
$500,000.00 $25,000.00 $0.00 $525,000.00
$550,000.00 $27,500.00 $0.00 $577,500.00
$600,000.00 $30,000.00 $0.00 $630,000.00
$650,000.00 $32,500.00 $0.00 $682,500.00
$700,000.00 $35,000.00 $0.00 $735,000.00
$750,000.00 $37,500.00 $0.00 $787,500.00
$800,000.00 $40,000.00 $0.00 $840,000.00
$850,000.00 $42,500.00 $0.00 $892,500.00
$900,000.00 $45,000.00 $0.00 $945,000.00
$950,000.00 $47,500.00 $0.00 $997,500.00
$1,000,000.00 $50,000.00 $0.00 $1,050,000.00

Peter Borszcz is a Real Estate Lawyer and Business Lawyer practicing in Kelowna, BC and a shareholder in the law firm of PIHL Law Corporation.

One thought on “Comparing HST and Transition Tax for New Housing

  1. Pingback: HST Transition Rules for Housing | BC Real Estate Law Blog

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