What is the GST/HST new housing rebate?

The GST/HST new housing rebate allows buyers of newly constructed homes, substantially renovated homes, or converted properties to recover a portion of the GST or the federal portion of the HST paid on the purchase. The rebate can be worth up to $6,300 (federal GST portion) for homes priced up to $350,000, with a sliding scale up to $450,000. Homes over $450,000 receive no federal rebate. Some provinces also offer a provincial HST rebate on top of the federal one.

Do you pay GST on a new home in Canada?

Yes. Newly constructed homes, substantially renovated homes, and homes purchased from a builder are subject to GST (or HST in harmonized provinces). Resale homes purchased from individuals are GST/HST-exempt. If you buy a brand-new condo, townhouse, or detached home from a builder, the purchase price includes 5% GST (or the HST rate in your province). The new housing rebate offsets a portion of this tax.

How much is the GST new housing rebate?

The federal GST new housing rebate is 36% of the GST paid, up to a maximum of $6,300. The maximum rebate applies when the home price is $350,000 or less. For homes between $350,000 and $450,000, the rebate is gradually reduced. For homes over $450,000, the federal GST rebate is $0. However, in Ontario and some other provinces, there is an additional provincial rebate that may still apply above $450,000.

Does the GST rebate apply to resale homes?

No. The new housing rebate only applies to newly constructed homes, substantially renovated homes, or conversions of non-residential properties into residential. Standard resale homes (buying from another individual, not a builder) are exempt from GST/HST and therefore the rebate does not apply. However, if you buy a resale home and substantially renovate it (gut renovation), you may qualify for the rebate on the renovation costs.

How do I claim the GST/HST new housing rebate?

There are two ways: (1) Through the builder — many builders include the rebate in the purchase price (meaning they claim it on your behalf and reduce the purchase price accordingly). This is the most common method for new builds. (2) Self-claim — you file Form GST190 with the CRA after closing. You have up to 2 years from the date of possession to file. If the builder already credited you the rebate in the purchase price, you do not need to file separately.

Can I get the GST rebate on a new condo?

Yes, new condos purchased directly from a builder qualify for the new housing rebate, provided you (or a close relative) will use it as a primary residence. If you purchase the condo as an investment/rental property, you do not qualify for the standard new housing rebate, but you may qualify for the separate GST/HST new residential rental property rebate instead.

GST/HST New Housing Rebate in Canada: Who Qualifies, How Much You Get & How to Claim (2026)

If you are buying a new home from a builder in Canada, you are paying GST or HST on the purchase price — and the new housing rebate can return thousands of dollars. But the rules are complex, the thresholds are strict, and mistakes are common. Here is everything you need to know.

Use this guide together with your first-time home buyer roadmap, the closing costs breakdown by province, and the broader benefits and credits hub to avoid missing adjacent tax savings.

When GST/HST applies to home purchases

Transaction	GST/HST Applies?	Rebate Available?
New build from builder	Yes	Yes — new housing rebate
Substantially renovated home	Yes	Yes — new housing rebate
Conversion (commercial to residential)	Yes	Yes — new housing rebate
Resale home from individual	No — exempt	No — not applicable
Assignment sale of new build	Yes (may be complex)	Possibly — depends on circumstances
New rental property (investment)	Yes	Separate rental property rebate

GST vs HST by province

Province	Tax Type	Total Rate	Federal Portion	Provincial Portion
Ontario	HST	13%	5%	8%
Nova Scotia	HST	15%	5%	10%
New Brunswick	HST	15%	5%	10%
Newfoundland & Labrador	HST	15%	5%	10%
PEI	HST	15%	5%	10%
British Columbia	GST only	5%	5%	N/A (separate PST — exempt on new homes)
Alberta	GST only	5%	5%	No PST
Saskatchewan	GST only	5%	5%	PST exempt on homes
Manitoba	GST only	5%	5%	PST exempt on homes
Quebec	GST + QST	14.975%	5%	9.975% QST

Federal GST new housing rebate

Eligibility requirements

Requirement	Details
Property type	Newly constructed home, substantially renovated home, or conversion
Use	You or a close relative must intend to use it as a primary residence
Ownership	You must be buying from a builder (registered for GST/HST)
Price threshold	Full rebate for homes up to $350,000; partial to $450,000; $0 above $450,000
Filing deadline	Within 2 years of the date the home is first occupied

Federal rebate calculation

Purchase Price (before tax)	GST (5%)	Federal Rebate (36% of GST)	Net GST After Rebate
$200,000	$10,000	$3,600	$6,400
$300,000	$15,000	$5,400	$9,600
$350,000	$17,500	$6,300 (maximum)	$11,200
$400,000	$20,000	$3,150 (partial)	$16,850
$450,000	$22,500	$0	$22,500
$500,000	$25,000	$0	$25,000
$700,000	$35,000	$0	$35,000

Sliding scale formula ($350,000–$450,000)

For homes priced between $350,000 and $450,000, the federal rebate is:

Rebate = $6,300 × ($450,000 − Purchase Price) ÷ $100,000

Purchase Price	Rebate Calculation	Federal Rebate
$360,000	$6,300 × ($90,000 ÷ $100,000)	$5,670
$380,000	$6,300 × ($70,000 ÷ $100,000)	$4,410
$400,000	$6,300 × ($50,000 ÷ $100,000)	$3,150
$420,000	$6,300 × ($30,000 ÷ $100,000)	$1,890
$440,000	$6,300 × ($10,000 ÷ $100,000)	$630
$450,000+	$0	$0

Provincial new housing rebates

Ontario HST new housing rebate

Ontario offers one of the most generous provincial rebates:

Component	Details
Provincial rate	8% (provincial portion of 13% HST)
Rebate	75% of the Ontario portion of HST
Maximum	$24,000
Price threshold	No upper limit — available at any price

This is critical: even though the federal rebate disappears above $450,000, the Ontario provincial rebate of up to $24,000 is available on homes at any price.

Purchase Price	Ontario HST (8%)	Provincial Rebate (75%, max $24K)	Federal Rebate	Total Rebates
$300,000	$24,000	$18,000	$5,400	$23,400
$400,000	$32,000	$24,000	$3,150	$27,150
$500,000	$40,000	$24,000	$0	$24,000
$700,000	$56,000	$24,000	$0	$24,000
$1,000,000	$80,000	$24,000	$0	$24,000

Other provincial rebates

Province	Provincial Rebate	Maximum	Price Cap
Nova Scotia	Portion of provincial HST	$3,000	$481,500
New Brunswick	No provincial rebate	—	—
Newfoundland	42.86% of provincial HST	$16,000	$481,500
PEI	No provincial rebate	—	—
Quebec (QST)	36% of QST	$9,975	$300,000 full; $0 above $450,000
BC	BC new housing rebate (5% GST only — no PST on new homes)	$6,300 federal only	$350,000 (partial to $450K)

BC enhanced new housing rebate

BC does not have HST, so the only rebate is the federal GST rebate. However, BC offers a separate BC New Housing Rebate for homes up to $750,000 (partial to $850,000), with a maximum rebate of $42,500 applied against the PST on the property transfer.

Substantially renovated homes

You may qualify for the rebate if you substantially renovate an existing home:

Requirement	Details
Definition	90% or more of the interior of the existing home must be removed or replaced
What counts	Structural upgrades, new floors/walls/ceilings, kitchen, bathrooms, electrical, plumbing
What does NOT count	Cosmetic upgrades, painting, landscaping, adding a deck
Builder requirement	You must be a registered GST/HST builder or hire one
Filing	Form GST191 (owner-built) or GST190
Deadline	2 years from substantial completion

Key test: CRA uses the “90% test.” If you gut the home down to the studs and rebuild, you probably qualify. If you renovate the kitchen, bathrooms, and floor but keep the original walls and structure, you probably do not.

How to claim the rebate

If your closing numbers still do not reconcile after rebate treatment, validate transfer taxes and legal fees in the land transfer tax calculator guide and all-in closing cost calculator.

Method 1: Through the builder (most common for new builds)

Step	Details
1. Builder includes rebate in price	The advertised price often already accounts for the rebate
2. You sign assignment form	Form GST190 — you assign your rebate to the builder
3. Builder claims the rebate	Builder files with CRA and keeps the rebate (since they already reduced your price)
4. You receive nothing separately	The savings are built into your purchase price

Warning: If the builder included the rebate in the price but you do NOT qualify (e.g., you buy as an investment, not primary residence), the builder will charge you the rebate amount — potentially $6,300–$30,000+ at closing.

Method 2: Self-claim (less common)

Step	Details
1. Pay full GST/HST at closing	No rebate credited by builder
2. Complete Form GST190	Available on the CRA website
3. Attach supporting documents	Purchase agreement, statement of adjustments, proof of occupancy
4. Mail to CRA	Sudbury Tax Centre
5. Receive rebate cheque	Typically 4–8 weeks after filing

Common mistakes that cost buyers money

Mistake	Consequence	How to Avoid
Buying new home as investment but claiming primary residence rebate	CRA can demand repayment + penalties	Only claim if you genuinely intend to live there
Not filing within 2 years	Rebate forfeited permanently	File promptly after taking possession
Assuming resale home qualifies	No rebate available for resale	Only new builds, substantial renovations, conversions
Not realizing builder already credited rebate	Double-claiming — CRA will reject or demand repayment	Check your purchase agreement and statement of adjustments
Flipping before 1 year of occupancy	CRA may deny primary residence claim	Live in the home for at least 1 year
Substantial renovation that does not meet 90% test	CRA denies rebate; you owe full GST/HST on the reno	Get professional advice before assuming you qualify

GST/HST rebate for rental properties

If you buy a new home as a rental investment (not primary residence), you do not qualify for the standard new housing rebate. However, you may qualify for the New Residential Rental Property Rebate:

Component	Details
Qualification	New build purchased for long-term rental (not Airbnb)
Federal rebate	36% of GST paid, max $6,300
Ontario provincial	75% of provincial HST, max $24,000
Filing form	GST524
Requirement	Must rent the property within 12 months
Deadline	2 years from closing

Quick decision tree

Question	Answer → Action
Is this a new build or substantial renovation?	No → No rebate available
Will you or a relative live in it as primary residence?	Yes → Standard new housing rebate
Will you rent it out?	Yes → Rental property rebate (different form)
Is the price below $450,000 (federal portion)?	Yes → You get some federal rebate
Are you in Ontario?	Yes → Provincial rebate of up to $24,000 at any price
Did the builder already credit the rebate?	Yes → Do not file again — it is already in your price