BC HST Rebate Summary

June 30, 2010

Effective July 1, 2010, British Columbia will be combining the GST and PST taxes into one Harmonized Sales Tax (HST). The implementation of the HST will not change the taxation on mortgage insurance premiums. However, the HST will be applicable on new construction homes and may be eligible for the HST new housing rebate.

  • In BC, the HST rate on new construction housing (i.e. both house and land) will be 12% (GST of 5% and PST of 7%)
  • There will be a partial rebate of the PST portion of the HST in an amount equal to 5% of the purchase price up to a maximum rebate of $26,250. The rebate would eliminate any tax increase on new housing sold for a purchase price of up to $525,000. There would be no phase out of this rebate, such that homes priced above $525,000 would qualify for the maximum rebate amount of $26,250.
  • New home buyers may be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate is phased out on a straight-line basis for homes priced between $350,000 and less than $450,000.

Examples of the applicable taxes are as follows:

Price of Eligible New Home
(excluding GST and/or HST)
GST
Portion
PST
Portion
Total
Rebates
$350,000 $6,300 $17,500 $23,800
$400,000 $3,150 $20,000 $23,150
$450,000 $0 $22,500 $22,500
$500,000 $0 $25,000 $25,000
$525,000 $0 $26,250 $26,250


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