An introduction to the GST/HST New Housing Rebate
The GST/HST new housing rebate is a Canadian federal government program that offers a rebate on the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) for new homes. The rebate is available to homebuyers who purchase a new-build home, preconstruction, or who make substantial renovations to an existing home.
How do you qualify for the new housing rebate?
The new housing rebate is available if you are buying or building a new house, condo, mobile home, floating home, bed and breakfast or duplex to live in as your primary residence. To qualify, the home must be in Canada and:
- Be purchased from a builder registered with the GST/HST New Housing Rebate program
- Be an owner-built home, meaning it has never been lived in before (including by the builder)
If you are buying a resale home, you may still be eligible for a partial rebate if certain renovations have been made. The home must satisfy all the requirements below:
- Be your primary residence
- Located in Canada
- Have substantial renovation, with at least 90% of the interior removed or replaced
How can you claim the new housing rebate?
To apply for the rebate, you will need to complete and submit a form from the government website within 2 years after the construction date. On this form, you will need to provide information about yourself and your home.
You will also need to include a copy of your sales contract, a copy of your settlement statement, and other documents depending on your situation.
If you’re claiming a rebate for a new home that you bought from a builder, you may be able to have the builder apply for the rebate on your behalf. The CRA will review your application and notify you of their decision. If you are approved for the rebate, you will receive a cheque in the mail.
How much is the new housing rebate?
The new housing rebate is worth 36% of the GST or federal portion of the HST paid on a newly constructed home, up to a maximum of $6,300. The rebate is valid on homes that are considered fair to the market with a value of $350,000 or less. If you have purchased a home that is more than $350,000, you can still be eligible for partial federal rebates and provincial new housing rebates as well.
Are there any provincial new housing rebates?
Depending on your province, you may also be able to get a rebate for some of the provincial sales tax you paid on the purchase of a new build home, in addition to any of the federal tax you might be able to claim back.
As of June 2024, here are the provinces who offer this rebate, and the maximum amount you can claim back.
Ontario new housing rebate
The maximum amount you can claim is $24,000.
Unlike other provinces, you may be able to claim this rebate even if the new home you’ve purchased is above the $450,000 fair market value threshold.
You can learn more about the full terms and conditions by visiting the Canada Revenue Agency’s full explainer.
Nova Scotia new housing rebate
The maximum amount you can claim on a newly-built home is 18.75% of the provincial tax you paid, up to a maximum of $3000.
You can find the full terms and conditions on the Nova Scotia government’s site.
Saskatchewan new housing rebate
If the newly constructed home you had purchased is less than $550,000, you can claim up to 42% of the PST you paid.
Find the full eligibility criteria at the government of Saskatchewan’s site.
Quebec new housing rebate
You can claim up to 50% of the QST you paid, up to a maximum rebate of $9,975.
The rebate amount is calculated on a sliding scale, based on the fair market value. If your new home is has a fair market value of more than $300,000 you aren’t eligible for any rebate on the QST you may have paid.
You can get the full details from Revenu Quebec.
What are some other programs for homebuyers?
First-time home buyers may also be eligible for a separate, non-refundable tax credit that can be used to offset part of the costs of buying a home, such as legal fees and land transfer taxes. There are also other government benefits and programs you may be eligible for.