Do I Pay Taxes When I Sell a Home in Ontario? | Realtor Explains What to Expect
Do you pay taxes when you sell a home in Ontario?
You may — depending on whether the property is your primary residence, an investment, or a rental. Sudbury realtor Tanya Vanden Berg explains the basics so sellers know what to prepare for. (Always consult a tax professional for personalized advice.)
If the home is your primary residence, you typically don’t pay tax on the profit thanks to the Principal Residence Exemption (PRE). Most Sudbury homeowners selling their main home fall into this category. You still need to report the sale to the CRA, but no tax is owed on the gain.
If the property is a rental or investment, taxes may apply. The CRA can charge capital gains tax on the profit you make from the sale — usually 50% of the gain is taxable. This often affects owners in areas like Minnow Lake, New Sudbury, and Donovan where rental properties are common.
If you’ve used part of your home for business, or if you rented out a portion, tax rules can get more complicated. This is why Tanya encourages sellers to speak with an accountant early in the process to avoid surprises.
You may also need to consider adjustments at closing, such as property taxes, utilities, or HST on certain fees. While these aren’t “taxes” on the sale, they still affect your final amount.
A realtor can’t give tax advice, but Tanya helps guide you on what questions to ask and who to speak with.
