Do I pay GST or PST when I buy a newly built home in Manitoba?
This answer covers the law of Manitoba.
Whether GST or PST applies to a newly built home in Manitoba, and whether any rebate is available, depends on the details of your purchase, so confirm it with a lawyer or accountant before you sign. The builder's contract should show what is included in the price, so read it closely. Do not assume the advertised price already includes every tax.
Land transfer tax is a separate cost. It is generally payable by the buyer, with some exceptions, plus a registration fee. It is calculated on the fair market value of the realty on the date of registration of the transfer of title, not simply the contract price. It is due on registration of the transfer at the land titles office.
Federal first-time buyer help exists too: the Home Buyers' Plan withdrawal limit is $60,000. A person can make an HBP withdrawal and an FHSA withdrawal for the same home if all conditions are met at the time of each withdrawal. Taxes and credits can change, so check current rules before you rely on any figure. Ask your lawyer how all these costs will appear at closing.
Key takeaways
- Whether GST or PST applies to your new home, and whether any rebate is available, depends on the facts, so confirm it with a lawyer or accountant.
- Land transfer tax is generally paid by the buyer and is based on fair market value on the registration date, not simply the contract price.
- Land transfer tax is due on registration of the transfer of title.
- The Home Buyers' Plan withdrawal limit is $60,000.