When does a real estate investor or landlord need to register for HST in Ontario?
For residential rental, the basic rule is that long-term residential rent is an exempt supply — so a landlord renting out apartments under long-term leases does not charge HST and generally does not need to register just because of that rental income.
Commercial real estate is a different matter. Renting commercial space (offices, retail, industrial) is a taxable supply, so commercial landlords must register for HST once their revenues exceed $30,000 and charge HST on commercial rents. They can then claim input tax credits on construction costs, renovation, and operating expenses.
Short-term accommodation (under 30 days, such as Airbnb rentals in most structures) is also taxable, and the $30,000 threshold applies to those revenues. Selling new residential construction is generally taxable as well, and builders may be required to remit HST on the fair market value of the property even in certain self-supply situations.
The line between exempt residential and taxable commercial or short-term supply can be fact-specific, and the consequences of getting it wrong are significant.
Key takeaways
- Long-term residential rent is exempt from HST; no registration required for that income.
- Commercial rents are taxable — register once you cross $30,000.
- Short-term rentals (under 30 days) are generally taxable.
- New home builders face special HST self-supply rules.