GST/HST Rebate on New Homes in Canada 2026

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GST/HST New Housing Rebate Calculator

What Is the GST/HST New Housing Rebate?

GST or HST generally applies when you buy a newly built or substantially renovated home from a builder. The GST/HST New Housing Rebate allows an eligible buyer to recover part or all of the tax paid when the home is used as a primary residence.

The rebate may apply when you:

• Buy a newly built house or condominium from a builder
• Buy a substantially renovated home from a builder
• Build a home on land you own or lease
• Hire a contractor to build your home
• Substantially renovate your existing home
• Convert a non-residential building into a home
• Buy a qualifying mobile, modular or floating home
• Buy a share in a qualifying housing co-operative

A substantial renovation generally means that at least 90% of the existing home’s interior has been removed or replaced. A kitchen renovation, new flooring or a single addition would not qualify on its own.

Which New Housing Rebate Applies to You?

The maximum amounts in this table cannot always be added together. Some programs increase or replace part of another rebate rather than providing a completely separate payment.

Who Qualifies for the GST/HST New Housing Rebate?

You may qualify for the regular rebate when:

• You are purchasing the home as an individual rather than through a corporation or partnership.
• The home is newly built or substantially renovated.
• GST or HST was paid on the purchase, construction or renovation.
• The home will be used as your primary residence or, under the regular rebate rules, the primary residence of an eligible family member.
• You or the eligible family member is generally the first person to live in the home after construction or renovation.
• You meet the program’s home price or property value requirements.
• You submit the application before the deadline.

A vacation property, occasional use home or property purchased mainly for future retirement would not normally qualify as a primary residence.

A home purchased mainly to rent to tenants may instead qualify for the GST/HST New Residential Rental Property Rebate.

Regular Federal GST/HST New Housing Rebate

The regular federal rebate refunds 36% of the GST paid on an eligible home. The maximum rebate is $6,300.

For example, the regular federal rebate on a $400,000 home is $3,150.

A home may still qualify for a provincial rebate or a first-time buyer rebate even when it is too expensive for the regular federal rebate.

First-Time Home Buyers’ GST/HST Rebate

The federal First-Time Home Buyers’ GST/HST Rebate provides a larger rebate to eligible first-time buyers purchasing or building a new or substantially renovated home.

It provides:

• A rebate of the full federal GST or federal portion of HST on homes priced at $1 million or less
• A maximum rebate of $50,000
• A gradually reduced rebate on homes priced between $1 million and $1.5 million
• No first-time buyer rebate at $1.5 million or more

The first-time buyer rebate does not provide an extra $50,000 on top of the regular federal rebate. Instead, it increases the total federal rebate up to the applicable first-time buyer amount.

Federal First-Time Buyer Rebate by Home Price

Who Is Considered a First-Time Home Buyer?

You need to meet all of the following conditions:

• You are at least 18 years old.
• You are a Canadian citizen or permanent resident.
• You have not lived in a home that you or your spouse or common-law partner owned during the current calendar year or the previous four calendar years.
• Neither you nor your spouse or common-law partner has previously received this rebate.
• You will use the new home as your primary residence.
• You will be the first person to occupy the home after construction or substantial renovation.

Unlike the regular rebate, the first-time buyer rebate generally requires the eligible first-time buyer to live in the home.

Qualifying Purchase Dates

For a typical home purchased from a builder:

• The purchase agreement must be signed on or after March 20, 2025, and before January 1, 2031.
• Construction or substantial renovation must begin before January 1, 2031.
• Construction or substantial renovation must be substantially completed before January 1, 2036.
• Ownership must transfer before January 1, 2036.

Assigning or replacing an agreement originally signed before March 20, 2025, for the purpose of receiving the rebate, does not necessarily make the purchase eligible.

GST/HST Rebates in Ontario

Ontario’s 13% HST includes:

• A 5% federal portion
• An 8% provincial portion

Ontario buyers may qualify under one of three main rebate paths:

• The regular Ontario New Housing Rebate
• The Ontario First-Time Home Buyers’ Rebate
• The temporary Ontario Enhanced New Housing Rebate

Regular Ontario New Housing Rebate

The regular Ontario rebate refunds 75% of the provincial portion of HST paid, up to a maximum of $24,000.

For a typical home and land purchase:

Unlike the regular federal rebate, the regular Ontario rebate does not disappear when the home price reaches $450,000.

Ontario First-Time Home Buyers’ Rebate

Eligible Ontario first-time buyers may receive a rebate of up to $80,000 for the 8% provincial portion of HST.

The rebate provides:

• The full provincial portion of HST on homes priced at $1 million or less
• A maximum provincial rebate of $80,000
• A gradually reduced first-time buyer rebate between $1 million and $1.5 million

The $80,000 first-time buyer rebate is not added to the regular $24,000 Ontario rebate. Instead, it increases the total provincial rebate to the applicable amount.

Ontario Temporary Enhanced New Housing Rebate

Ontario’s temporary enhanced rebate is available to eligible buyers of qualifying new or substantially renovated homes.

• You do not need to be a first-time home buyer.
• For a typical home purchase from a builder, the agreement must be signed from April 1, 2026, through March 31, 2027.

The program can provide:

• A full rebate of the 13% HST on homes priced at up to $1 million
• A combined maximum rebate of $130,000 on homes priced between $1 million and $1.5 million
• A gradually reduced rebate on homes priced between $1.5 million and $1.85 million
• The regular $24,000 Ontario rebate on homes priced at $1.85 million or more

The maximum $130,000 consists of up to:

• $80,000 for the 8% provincial portion of HST
• An additional Ontario-funded rebate of up to $50,000, equal to the 5% federal portion

Ontario Enhanced Rebate by Home Price

Ontario Enhanced Rebate Deadlines

For a typical home purchased from a builder:

• The purchase agreement is signed from April 1, 2026, through March 31, 2027.
• Construction or substantial renovation begins before January 1, 2029.
• Construction or substantial renovation is substantially completed before January 1, 2032.
• HST becomes payable before January 1, 2033.

Different deadlines apply to owner-built homes and rental properties.

Is the Ontario Enhanced Rebate an HST Exemption?

No. HST still applies to the purchase.

The relief is provided through rebates. A builder may apply the rebate at closing so that the buyer does not have to pay the full HST upfront.

New Housing Rebates by Province

British Columbia New Home Rebates

British Columbia does not currently offer a provincial new housing GST rebate similar to Ontario’s provincial rebate.

Eligible BC buyers may still receive:

• The regular federal GST rebate
• The federal First-Time Home Buyers’ GST Rebate

BC also offers a separate, newly built home property transfer tax exemption. It is not part of the GST rebate.

The property transfer tax exemption may fully eliminate the tax on an eligible newly built primary residence valued at up to $1.1 million. A partial exemption may be available between $1.1 million and $1.15 million.

Nova Scotia First-Time Home Buyers’ Rebate

Nova Scotia offers a separate provincial rebate of up to $3,000 to qualifying first-time buyers purchasing a newly built home.

The rebate equals:

• 18.75% of the provincial portion of HST paid
• Up to a maximum of $3,000

The home must be used as the buyer’s primary residence.

The Nova Scotia rebate does not apply to ordinary renovations or the conversion of a rental property into a condominium.

An eligible buyer may qualify separately for both the federal first-time buyer rebate and the Nova Scotia rebate.

Quebec GST and QST New Housing Rebates

Quebec administers both the federal GST rebate and the provincial QST rebate through Revenu Québec.

Under the regular rules:

• The maximum GST rebate is $6,300.
• The maximum QST rebate is $9,975.
• The GST rebate is reduced between $350,000 and $450,000.
• The QST rebate is reduced between $200,000 and $300,000.
• No regular GST rebate is available at $450,000 or more.
• No regular QST rebate is available at $300,000 or more.

Eligible Quebec first-time buyers may also qualify for the federal first-time buyer GST rebate of up to $50,000. The federal first-time buyer rebate does not increase Quebec’s regular QST rebate limits.

Saskatchewan PST Rebate for New Home Construction

Saskatchewan’s PST Rebate for New Home Construction is separate from the federal GST rebate.

The program rebates up to 42% of the PST paid on an eligible new and previously unoccupied home.

The qualifying price must:

• Be below $550,000
• Exclude taxes
• Exclude the value of the land
• Exclude most furniture, furnishings and appliances

The full rebate may be available where the qualifying price is below $450,000. The rebate is gradually reduced between $450,000 and $550,000.

Because the Saskatchewan program excludes the land and certain other items, the total home price alone may not be enough to calculate the exact rebate.

Buying From a Builder vs. Building Your Own Home

Home Purchased From a Builder

You may use the builder-purchased rebate process when you:

• Buy a new home and the land from the same builder
• Buy a new home while leasing the land
• Buy a qualifying mobile or floating home
• Buy a share in a qualifying housing co-operative

For a normal home-and-land purchase, the rebate is usually based on the purchase price before GST/HST and the amount of tax paid.

Owner-Built Home

An owner-built rebate may apply when you:

• Build a home on land you own or lease
• Hire a contractor to build the home
• Substantially renovate your existing home
• Convert a non-residential building into a home

The rebate is based on the GST/HST actually paid on eligible land, materials, construction services and improvements. The completed home’s fair market value can also affect eligibility.

Owner-builders should keep:

• Contractor invoices
• Material receipts
• Proof of GST/HST paid
• Building and occupancy permits
• Construction dates
• Documents supporting the completed home’s value

The calculator’s standard purchase-price estimate may not match an owner-built claim because the owner-built calculation is based on actual construction costs and tax paid.

What Does “Substantially Renovated” Mean?

A home is generally substantially renovated when at least 90% of the existing interior is removed or replaced.

Replacing only the kitchen, bathrooms, roof, windows, or flooring would not usually be enough.

A new addition also does not normally qualify by itself. However, the addition may form part of the rebate calculation where the existing home is also substantially renovated.

Is GST or HST Included in the Builder’s Price?

It depends on the builder and the purchase agreement.

A builder may advertise:

• A price before GST/HST
• A price including GST/HST
• A price including GST/HST, but after an expected rebate
• A price that assumes the buyer will transfer the rebate to the builder

Before using the calculator, check:

• The agreement of purchase and sale
• The GST or HST section of the agreement
• The statement of adjustments
• Whether the advertised price includes tax
• Whether the price already deducts a rebate

Entering a tax-included or rebate-adjusted price as though it were a before-tax price may result in an incorrect estimate.

Transferring the Rebate to the Builder

A builder may apply the rebate as a credit at closing.

When this happens:

• The builder reduces the amount you need to pay.
• You complete the required rebate documents.
• The builder submits the application.
• The builder receives or claims the rebate amount.

This allows an eligible buyer to avoid paying the full GST/HST upfront and waiting for a refund.

Builders are not required to credit the rebate. If the builder does not apply it at closing, the buyer may need to pay the full tax and apply directly.

When Do You Need to Apply for the Rebate Yourself?

You may need to apply directly when:

• The builder does not credit the rebate at closing.
• You paid the full GST/HST amount.
• You qualify for a larger rebate than the builder applied.
• You built or substantially renovated the home yourself.
• You are applying for a separately administered provincial rebate.

For a normal home-and-land purchase from a builder, you will generally need:

• Your rebate application
• Your statement of adjustments
• Your purchase agreement
• Assignment documents, if the agreement was assigned
• Any other documents requested by the CRA or province

GST/HST Rebate on an Assignment Sale

An assignment sale occurs when the original buyer transfers their right to purchase a new home to another buyer before closing.

The final buyer’s rebate calculation may need to include:

• The original builder's purchase price
• The amount paid to the original buyer for the assignment
• GST/HST charged on the assignment
• The original purchase agreement
• The assignment agreement
• The final statement of adjustments

Assigning an older agreement does not necessarily make the property eligible for a newer rebate program.

Because assignment sales can involve additional taxable amounts, the standard calculator result should be treated as an estimate.

How to Apply

Buying a Home and Land From a Builder

When the builder credits the rebate, the builder will usually provide and submit the required documents.

When applying yourself, you will generally need the applicable CRA new housing rebate application and your closing documents.

The deadline is usually two years after ownership transfers to you.

Owner-Built Home

Owner-builders generally apply using the CRA’s owner-built new housing rebate application.

The deadline depends on when construction was completed, when the home was occupied and whether it was sold before occupancy.

Quebec

Quebec buyers apply through Revenu Québec.

Nova Scotia and Saskatchewan

Nova Scotia’s first-time buyer rebate and Saskatchewan’s PST rebate require separate provincial applications. Applying for the federal rebate does not automatically apply for these programs.

Applying for the Ontario New Housing Rebate

Ontario buyers usually apply for the federal and Ontario portions of the rebate through the CRA.

If the builder credits the rebate at closing, the builder will normally provide the federal and Ontario rebate forms for you to complete and will submit them on your behalf.

If the builder does not credit the rebate, you may need to apply directly using Form GST190 for a home and land purchased from a builder.

Buyers applying for the Ontario first-time buyer rebate or temporary enhanced Ontario rebate may also need the forms or schedules, such as RC7190-ON GST190 Ontario Rebate Schedule, created for those programs.

Because the Ontario first-time buyer and temporary enhanced rebates were introduced in 2026, confirm that you are using the latest CRA forms before submitting your application.

GST/HST New Housing Rebate Examples

Example 1: Regular Federal Rebate on a $400,000 Alberta Home

A repeat buyer purchases a new Alberta home for $400,000 before GST.

• GST: $20,000
• Regular federal rebate: $3,150
• GST after rebate: $16,850

Alberta does not have a separate provincial sales tax rebate.

Example 2: First-Time Buyer Purchasing a $750,000 BC Home

An eligible first-time buyer purchases a qualifying new BC home for $750,000 before GST.

• GST: $37,500
• Federal first-time buyer rebate: $37,500
• GST after rebate: $0

BC’s property transfer tax exemption is separate and is not included.

Example 3: Ontario First-Time Buyer With a 2025 Agreement

An eligible first-time buyer signs an agreement in October 2025 to purchase an $800,000 Ontario home.

• Federal portion of HST: $40,000
• Provincial portion of HST: $64,000
• Federal first-time buyer rebate: $40,000
• Ontario first-time buyer rebate: $64,000
• Combined rebate: $104,000
• HST after rebates: $0

The temporary Ontario enhanced rebate does not apply because the agreement was signed before April 1, 2026.

Example 4: Ontario Repeat Buyer Under the Temporary Enhanced Program

A repeat buyer signs an agreement in May 2026 to purchase a qualifying $1.25 million Ontario home.

• HST: $162,500
• Estimated combined enhanced rebate: $130,000
• HST after rebate: $32,500

The buyer does not need to be a first-time home buyer.

Example 5: Quebec Regular Rebate on a $250,000 Home

An eligible buyer purchases a new Quebec home for $250,000 before tax.

• Regular federal GST rebate: $4,500
• Estimated QST rebate: $4,987.50
• Estimated combined rebate: $9,487.50

The application is submitted through Revenu Québec.

Frequently Asked Questions

Is the GST/HST rebate only for first-time home buyers?

No. The regular GST/HST New Housing Rebate is available to eligible repeat buyers and first-time buyers.

First-time buyers may qualify for a larger federal rebate with higher home-price limits.

Ontario’s temporary enhanced rebate is also available to eligible repeat buyers.

Can I claim the rebate on a resale home?

Generally, no.

GST or HST normally does not apply when an occupied resale home is sold. Since no new housing sales tax is charged, there is usually no rebate to claim.

A substantially renovated home may be treated as new for GST/HST purposes.

Does a new condominium qualify?

Yes. A newly built or substantially renovated condominium may qualify when the ownership, occupancy and primary-residence requirements are met.

Can I claim the rebate if a corporation buys the home?

No, the owner-occupied new housing rebate is intended for individual buyers rather than corporations or partnerships.

Can I claim the regular rebate if a family member will live in the home?

The regular rebate may be available where the home will be the primary residence of an eligible family member.

The federal first-time buyer rebate is more restrictive. The eligible first-time buyer generally needs to live in the home.

Can I claim the rebate on an investment property?

The owner-occupied new housing rebate generally does not apply to a property purchased mainly for rental use.

A qualifying long-term rental property may instead be eligible for the New Residential Rental Property Rebate.

What happens if I move shortly after closing?

Eligibility depends partly on your genuine intention when you purchased or built the home.

Moving or selling shortly after closing does not automatically disqualify you, but the CRA may ask for evidence that you originally intended to use the home as your primary residence.

Does the purchase price include GST/HST?

The price thresholds for a normal home-and-land purchase generally use the purchase price before GST/HST.

Check your builder agreement because the advertised price may already include tax or deduct an expected rebate.

Do builder upgrades count toward the home price?

Taxable upgrades and extras charged by the builder are generally included in the amount paid for the home and may affect the rebate calculation.

Can both spouses claim separate rebates?

No. Only one rebate application is submitted for the home.

The ownership and housing history of both spouses or common-law partners may affect first-time buyer eligibility.

Can the builder receive my rebate?

Yes. A builder may apply the rebate as a credit at closing when the buyer agrees and qualifies.

The purchase agreement should explain whether the price already assumes that the rebate will be transferred to the builder.

How long does the rebate take?

Processing times depend on the rebate type, the documents submitted and whether the application is selected for review.

First-time buyer applications may take longer while the new programs are being introduced.

Do I need to keep my receipts?

Yes.

Buyers should keep their purchase agreement, statement of adjustments and closing documents. Owner-builders should also keep invoices, contracts and proof of GST/HST paid on construction materials and services.

Is the rebate taxable income?

For most people purchasing a personal residence, the rebate is a refund of sales tax rather than taxable income.

Different rules may apply to rental, business or resale properties.