Hst Tax Information

Ontario Harmonized Sales Tax (HST)

The 8% Ontario sales tax and the 5% GST are being combined into a single 13% value-added sales tax that will be federally administered, starting July 1, 2010.

Consumers will now have to pay 13% HST on all goods and services on which they previously paid 5% GST, except for several items which are currently RST exempt and will not be subject to the provincial portion of the HST. The following are some made-in-Ontario components: Books, children's clothing and footwear, diapers, children's car seats and car booster seats, and feminine hygiene products would be exempt from the 8% provincial portion of the tax.

Purchasers of newly constructed homes under $400,000 will not be subject to an additional tax burden. Buyers of new homes valued between $400,000 and $500,000 can claim a proportional rebate.

New rental housing rebate, similar to the enhanced new housing rebate, for new residential rental properties.

Up to $400 million in one-time sales tax credits will be provided to help small businesses make changes to point-of-sale and accounting systems.

Provincial portion of the tax rate on transient accommodation, such as hotel rooms, will rise from 5% to 8%. Approximately $40 million a year will be allocated to support destination marketing in Ontario tourism regions once these are established.

Additional point-of-sale exemptions announced November 12, 2009: Print newspapers

Qualifying prepared food and beverages that are ready for immediate consumption and are sold for a total price of not more than $4.00
 

Used vehicles purchased privately (not from an HST registrant) will still be subject to a retail sales tax of 8%.
 

The Ontario Ministry of Revenue has a page titled "What's Taxable Under the HST and What's Not?". The tables on this page show in detail which items will be subject to a higher tax under the HST, and which ones will not.

Ontario Sales Tax Transition Benefit
As part of the sales tax reform, cash payments will be provided to Ontario tax filers, in each of June and December 2010, and June 2011.

Eligible families with income of less than $160,000 would receive 3 payments totalling $1,000.

Eligible individuals who earn less than $80,000 would get 3 payments totalling $300.

To qualify for the 2 payments in 2010, a 2009 tax return would have to be filed.

Individuals who turn 18 prior to December 1, 2010, or who have a spouse or common-law partner or live with a dependent child on May 31 or November 30, 2010, will qualify for 1 or 2 of the 2010 payments.

To qualify for the 2011 payment, a 2010 tax return would have to be filed.

Resource:  taxtips.ca