Do I have to charge GST/HST when I sell vacant land?

Arsen Accounting Services · Question 156 · Sources checked October 29, 2026

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Many sales of personal-use vacant land by individuals are exempt, but important exceptions can make a sale taxable. The answer depends on ownership, use, development activity, and subdivision history. Vacant land is not automatically tax-free.

Review how the land was held and used

CRA identifies potentially taxable situations including land used primarily in a business, sales in the course of a business, and certain subdivided parcels. Different rules may apply to corporations or partnerships, so guidance for an individual owner should not be applied indiscriminately.

If a property includes a residence and additional land, separate components may need to be considered. The income-tax treatment of the gain is another question; a GST/HST exemption does not eliminate income tax on an otherwise taxable gain.

Official guidance: [1].

Check before setting the closing price

For example, an owner who subdivides a long-held parcel should review the subdivision and sales history before assuming the original personal use controls every later sale. The sale agreement should make the tax treatment and responsibility clear.

Prepare a land history

• Ownership structure and acquisition documents.
• Personal, rental, farming, or other business use.
• Subdivision plans and previous parcel sales.
• Development work, marketing activity, and the draft agreement.

Ask a tax adviser to assess the transaction before signing the tax clauses. Where the facts are uncertain, consider the appropriate CRA ruling or interpretation process. Do not let the absence of a GST/HST account substitute for determining whether this particular property sale is taxable.