Canada GST/HST New Housing Rebate Guide

the GST/HST New Housing Rebate in Canada. The GST/HST New Housing Rebate is a rebate of a portion of the GST (or the HST) paid by the purchaser of the new home (the newly constructed or the substantially renovated home). The federal GST rebate recovers 36% of the GST paid, up to a maximum of $6,300 (for the homes priced up to $350,000). The rebate phases out for the homes priced between $350,000 and $450,000 (the rebate is reduced by $1 for every $16 of the price above $350,000). The BC provincial new housing rebate (the "BC New Housing Rebate" under the HST) provides up to $52,500 on the provincial portion of the HST. The Ontario New Housing Rebate provides up to $24,000 on the Ontario portion of the HST (8% of the purchase price up to $400,000). The GST/HST New Residential Rental Property Rebate is available for the landlords who buy or build the new rental property and rent it as the principal residence. The assignment sale (the "pre-construction assignment" — the original buyer assigns the contract to the new buyer) may affect the GST/HST rebate eligibility. The Form GST190 (the "GST/HST New Housing Rebate Application") and the Form GST191 (the "GST/HST New Housing Rebate Application for the Owner-Builder") are the application forms.

Federal GST Rebate

36% of the GST: The rebate is 36% of the 5% GST paid. The maximum rebate is $6,300 (36% x 5% x $350,000). The rebate phases out at the price above $350,000 (the "phase-out range" — $350,000 to $450,000). The rebate is fully eliminated at $450,000.
Price threshold: The home price (the "purchase price" or the "cost of the construction") must be $450,000 or less to qualify for any rebate (the "maximum qualifying price"). The home price of $425,000 qualifies for the reduced rebate of $1,575.
Qualifying homes: The single-family homes, the semi-detached homes, the townhouses, the condominium units, the mobile homes, and the floating homes (the "qualifying new housing"). The "substantial renovation" (the renovation that removes all but the foundation and the walls) qualifies for the rebate (the "substantial renovation" definition — the "gut renovation" that costs at least $20,000 or 50% of the property value).

Provincial New Housing Rebates

Ontario: The Ontario New Housing Rebate (the "ON HST rebate") provides up to $24,000 on the Ontario portion of the HST (8% of the purchase price up to $400,000). The rebate is 75% of the Ontario HST paid (the "rebate rate" — 75% of the 8% Ontario HST = 6% of the purchase price). The maximum rebate is $24,000 (6% x $400,000). The rebate phases out above $400,000.
BC: The BC New Housing Rebate provides up to $52,500 on the BC portion of the HST (the "BC New Housing Rebate" — the BC did not reintroduce the HST; the BC uses the PST + GST system). The BC rebate is available for the newly built homes (the "GST rebate" at the federal level only).
Nova Scotia, New Brunswick, Newfoundland, PEI: The HST provinces have the provincial new housing rebates that mirror the federal rebate structure (the "HST new housing rebate" — the provincial portion of the HST rebate).

New Residential Rental Property Rebate

Landlord rebate: The landlord who builds or buys the new rental property (the "purpose-built rental" — the apartment building, the rental house) can claim the GST/HST New Residential Rental Property Rebate. The rebate is available for the rental units that are rented as the principal residence for at least 1 year (the "qualifying rental" — the "long-term rental").
Rebate amount: The same as the new housing rebate (36% of the GST, up to $6,300 per unit). The provincial rental rebate is available in the HST provinces (the Ontario rental rebate at 75% of the Ontario HST, up to $24,000 per unit).
Self-constructed rental: The landlord who constructs the rental property (the "owner-builder") can claim the rebate on the GST paid on the construction materials and the services (the "GST input tax credits" for the construction costs).

For the first-time home buyer programs and the land transfer tax rebates, see our First-Time Home Buyer Guide →. For the GST/HST registration and the filing requirements, see our GST/HST Guide →.