Ontario Homeowners Renting Regularly on Airbnb Face 13% Tax When Property Is Sold: Court Ruling

Ontario Homeowners Renting Regularly on Airbnb Face 13% Tax When Property Is Sold: Court Ruling
A for sale is sign is displayed in front of a house in the Riverdale area of Toronto on Sept. 29, 2021. The Canadian Press/Evan Buhler
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Ontario property owners who regularly rent out their homes on platforms like Airbnb could be required to pay 13 percent HST when selling the property, according to a recent court ruling.

The harmonized sales tax (HST) does not usually apply to the sale of a residential property that was previously occupied, according to the Canadian Revenue Agency (CRA). But the Tax Court of Canada ruled in March that the sale of a condo unit that was rented out on Airbnb for several short-term leases was indeed subject to the tax.