Canada have both passed legislation that will implement
the Harmonized Sales Tax (HST).
The HST effectively combines the eight per cent
Provincial Sales Tax (PST) with the federal Goods and
Services Tax (GST) for a combined 13 per cent sales
tax rate. The HST will come into force on July 1, 2010
and apply the PST to a number of goods and services
that are currently exempt.
For housing, the HST will add eight per cent more
tax on services related to real estate transactions including legal fees, real estate commissions, home
inspections and moving costs. OREA estimates that the HST will add about $1,500 in new taxes to
the costs of an average residential real estate transaction.
