Like with the transaction of any good or service in the province, there is a 13% tax (Harmonized Sales Tax) added to every purchase, including the sale properties. When buying a home, this tax can add up to a substantial amount. In Ontario, the HST Rebate program is offered to residential property buyers as a way to offset the cost of new home purchases. If you are significantly renovating a property or you’ve purchased a plot of land and are building a new home from the ground up, you may also qualify for the HST Rebate on new homes, but you must submit an application independently. For guidance and more insight on accessing the HST new housing rebate, consult with the experts at Rebate4U. Our specialists have more than a decade of experience helping homeowners get thousands of dollars back on their renovations and construction costs through the HST Rebate Ontario program.
Here’s a breakdown of what parts of your home renovations are subject to HST and what can be considered for your rebate application.
Renovation & Building Materials
When building a brand new home, either from scratch or through a substantial renovation, new building materials are essential. Whether it's lumber, tiles, or fixtures, these tangible goods are subject to HST in Ontario. Because materials often make up a large part of your costs, they can lead to a substantial amount in HST.
Labour and Services
While some property owners may do some of the labour themselves, building a new home takes a large team of professionals which come at a cost. The skilled professionals who bring your new home dreams to fruition, such as contractors, electricians, and plumbers, provide invaluable services. However, these services are not exempt from HST. Labour costs, which can be a significant part of your overall expenses, are subject to the 13% Harmonized Sales Tax. When working with contractors it’s important that you keep a record of all of your invoices to prepare for your application for the HST Rebate on home renovations.
Property Inspections
Before you start construction and after it’s completed, you will need building inspections to ensure that all the work meets the codes and standards required locally. However, it's important to note that some inspections, particularly those conducted by building inspectors, may be subject to HST. While the cost of inspections might not be as conspicuous as materials or labor, it's still a factor that contributes to the overall financial picture of your renovation. Being aware of HST on inspections allows for more accurate budgeting and helps homeowners understand the full spectrum of costs associated with regulatory compliance.
Maximize Your HST Rebate with Our Experts
Understanding the ins and outs of HST in home renovations requires a keen eye for detail and a proactive approach to financial planning. Although HST costs on your home renovation can add up, the Ontario HST Rebate program can help minimize the financial burden. With nearly 13 years of experience, our team has successfully helped homeowners throughout Ontario get back hundreds of millions of dollars in rebates. To learn more about your options and how to apply, schedule a consultation with the Rebate4U team.
Streamline your application and maximize your return with the help and guidance of Rebate4U.
