HST around the house

With HST tax coming into effect July 1st, many new home owners are wondering what exactly will be affected, and what won't. Many household items that were previously subject to 8% provincial and 5% federal tax will now simply switch over to the 13% HST, and consumers will incur no additional costs. However, some items that were only subject to the 5% federal tax will now be subject to the 13% HST. In total, about 83% of products and services purchased by consumers will see no new tax.

What WON'T be affected:

• New homes under $400,000 (The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the PST system. However, applicable PST on building supplies is embedded in the price of the home.)
• Cable TV and home phone services
• Municipal water
• Home maintenance equipment
• Repairs to free-standing appliances such as stoves, refrigerators, washing machines
• Home insurance
• Cleaning products
• Household and patio furniture
• Refrigerators and Freezers
• Books, newspapers and computer software
• Landscaping materials including sod, soil and plants
• Barbeques, lawnmowers, snow blowers
• Toys and outdoor play equipment
• Linens including towels and bedding
• Tools, such as shovels and rakes
• Building materials such as lumber and concrete

What WILL be affected:

• New homes over $400,000 (New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.)
• Cleaning services (Changes from 5% to 13%)
• Electricity and Heating (Changes from 5% to 13%)
• Internet Access (Changes from 5% to 13%)
• Repairs by trades people (electrician/plumber/carpenter) to maintain or repair furnace, leaky faucets, toilets, electrical wiring, etc. (Changes from 5% to 13%)
• Landscaping, lawn care and private snow removal (Changes from 5% to 13%)
• Home renovations (Changes from 5% to 13%)