GST/HST New Housing Rebate

The GST/HST New Housing Rebate is a federal rebate that reduces the GST or HST paid on certain new or substantially renovated homes, returning part of that tax to the buyer. It is administered by the Canada Revenue Agency (CRA) under the Excise Tax Act, and in some provinces a matching provincial rebate applies alongside it.

Which homes and buyers qualify

Eligibility turns on the type of home and how it is used, not on whether the buyer is a first-time buyer. Typical qualifying situations include:

• buying a newly built home from a builder;
• building a home yourself, or hiring someone to build it, on land you own;
• substantially renovating an existing home, where the work is extensive enough to be treated as new.

The home generally must be used as the primary residence of the buyer or a qualifying relative. Resale homes are not covered, because GST/HST normally does not apply to used residential housing. Investors buying primarily for rental use fall under a separate rebate program instead.

How the rebate is calculated

The federal rebate is a set share of the GST paid, capped at a maximum amount, and it phases out as the purchase price rises above a threshold. Ontario applies a provincial rebate on the provincial part of the HST, and in Quebec the QST portion is administered by Revenu Québec. Because the caps and phase-out ranges are set by legislation and can change, confirm the current figures on canada.ca before relying on any estimate.

Since the rebate lowers the effective purchase price, it belongs in any closing cost budget alongside land transfer tax and legal fees. A closing costs calculator can help show where it fits.

Claiming the rebate

Buyers usually apply using the CRA's rebate form, submitting the agreement of purchase and sale, proof that tax was paid, and occupancy details. Many buyers instead assign the rebate to the builder, who credits it against the purchase price at closing — a common approach that reduces the cash required on completion day. There is a filing deadline, so confirm the current timeline and required documents with the CRA before you close.