Do I charge HST when I sell my used home in Ontario?

Generally, no. The sale of a used residential property is exempt from HST under the federal Excise Tax Act. A "used" home is one that has been occupied as a place of residence. Because the supply of a used residential property is an exempt supply, no HST is charged on the selling price and the seller does not need to register for or collect HST.

However, there are important exceptions. New residential properties — those that have never been occupied as a place of residence before, including newly constructed homes and substantially renovated properties — are subject to HST. A substantial renovation is one where 90% or more of the interior of the building has been gutted and rebuilt. The HST on a new or substantially renovated home is typically built into the builder's price, and the buyer may be eligible for a new housing HST rebate that reduces the net HST payable.

If you are selling a property that was recently substantially renovated and has not yet been occupied as a residence, speak with a tax lawyer before listing — you may have HST obligations that are not immediately obvious and that could catch a purchaser off guard.