Is GST or PST charged on a new home in Manitoba?
This answer covers the law of Manitoba.
Whether GST or PST applies to a newly built home depends on the type of home, who is selling it and how the price is structured, so you should not assume the quoted price includes or excludes tax. Ask the builder in writing whether the price includes GST and any PST, and have your lawyer or accountant review the contract before you sign.
Tax on the purchase itself is only one cost. As the buyer, you generally pay Manitoba land transfer tax plus a registration fee, calculated on the fair market value of the property on the registration date rather than simply the contract price. On a $350,000 value, the tax works out to $4,650.
Do not assume a new home comes with a mandatory warranty. The New Home Warranty Act was never proclaimed, so a statutory warranty on new homes is not in force. Any warranty would depend on what the builder or a private provider offers, so read its terms carefully. Get the tax treatment, deposit and any warranty written into the contract. A lawyer or accountant can confirm which taxes and rebates apply to your purchase.
Key takeaways
- Do not assume the quoted price includes or excludes GST or PST; ask the builder to confirm in writing.
- Land transfer tax is a separate cost that the buyer generally pays, plus a registration fee.
- Land transfer tax is based on fair market value on the registration date, and a $350,000 value works out to $4,650.
- A mandatory statutory new home warranty is not in force in Manitoba, so check what the builder or a private provider actually offers.