Published 16 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
Usually no. In Ontario, the sale of a used residential home by an individual is generally exempt from HST. HST can apply if you built the home or substantially renovated it (typically replacing about 90% or more of the interior) and sell it, if you are in the business of buying and selling homes, or if part of the property is used commercially. You do pay HST on real estate commission and legal fees.
When HST usually does not apply
Selling your own home, a cottage, or a resale condo you lived in or rented out as an individual is generally an exempt supply of a used residential complex.
When HST can apply
| Situation | Why HST may apply |
|---|---|
| You built the home and sell it | Treated as a builder selling a new home |
| Substantial renovation then sale | Can be treated as a new home |
| Regular buying, renovating and flipping | May be a business, making sales taxable |
| Commercial or mixed-use property | The commercial portion can be taxable |
| Vacant land sold by a business or after subdivision | Can be taxable |
| Assignment of a pre-construction contract | HST generally applies to the assignment profit |
The HST you do pay
HST at 13% applies to real estate commission and legal fees on your sale. Include it when calculating your net. Try the net proceeds calculator.
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Get advice when in doubt
HST status depends on facts, so speak with an accountant or tax lawyer before listing if you renovated heavily, built, or bought to resell. See HST clauses in the agreement and assignment sales and HST.
Where I fit
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty. I flag HST questions early for sellers across Toronto and the GTA so the agreement is worded correctly and there are no surprises at closing.
The takeaway
Most Ontario homeowners do not charge HST when selling a used home. HST can apply after building or substantial renovation, when flipping as a business, or on commercial portions and assignments. You still pay HST on commission and legal fees, and short-term flips have income tax rules too.
Talk it through with me
Not sure if HST applies to your sale?
Tell me about the property and what you did to it. I will flag the issues to raise with your accountant.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Do I pay HST when selling my house in Ontario?
Usually not. Sales of used residential homes by individuals are generally HST-exempt.
When does HST apply to selling a house?
If you built or substantially renovated it, flip homes as a business, sell a commercial portion, or assign a pre-construction contract.
What counts as a substantial renovation?
Generally when about 90% or more of the interior of the building is removed or replaced. Get tax advice for your facts.
Do I pay HST on realtor commission?
Yes, 13% HST applies to commission and legal fees in Ontario.
Is HST included in a resale home price?
For exempt resale homes, no HST is charged. Agreements usually say HST is included if applicable.
What is the anti-flipping rule?
Gains on homes held less than 365 days are generally taxed as business income, with limited exceptions.
Sources
- Canada Revenue Agency — GST/HST and home construction — when sales of residential property are exempt or taxable, including substantial renovations. Accessed 16 September 2026.
- Ontario Real Estate Association — publisher of the standard Agreement of Purchase and Sale forms used in most Ontario resale transactions. Accessed 16 September 2026.
- Real Estate Council of Ontario (RECO) — public register of registrants, registration categories and disciplinary decisions. Accessed 16 September 2026.
Related reading
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.