Home > Buyers > HST Info for Home Buyers The Harmonized Sales Tax (HST) is a 12% tax levied on most goods and services, including new homes, real estate, and property. The new B.C. HST is the combination of the Federal Goods and Services Tax (5% GST) and the Provincial Sales Tax (7% PST). The Harmonized Sales Tax will be implemented on July 1, 2010. The BC HST is NOT a 12% real estate tax, but a provincial harmonized tax on most goods, services and consumer products, which consequently includes new homes. New BC and Vancouver homes are currently subject to 5% GST (federal tax) where first time homebuyers or investors can receive GST rebates. This 5% GST will be replaced with the higher 12% HST, a difference of 7% on the final total purchase price! The B.C. HST program will give partial rebates for new BC homes priced up to $525,000. The government will give these homebuyers a partial rebate on the provincial tax side which makes any new B.C. home or Vancouver property $525,000 or less no more expensive than it is currently. Homebuyers looking to buy new Vancouver property over $525,000 will receive a maximum BC HST rebate of $26,250, but will see the purchase price above that level subject to the new extra five per cent tax rate system. The British Columbia Harmonized Sales Tax of 12% is also applicable to any costs and fees associated with your property/home purchase including legal/notary fees, commissions and other closing costs. The BC HST transitional rules are unclear at this time. However, what is clear is that the cost of owning a new home will increase significantly in British Columbia. Not only will your new home or real estate purchase cost more up front, but the 12% HST is also applicable to such things like strata fees, residential heating fuel, commercial rents, smoke detectors, fire extinguishers, repairs, cable TV, internet, electricity, gas, renovations, painting and other professional services.