GST/HST New Housing Rebate in Canada 2026: Complete Guide
Buying a new home in Canada comes with GST or HST on top of the purchase price — but the federal government and some provinces offer a significant New Housing Rebate that can return thousands of dollars. This guide explains exactly how GST/HST applies to real estate in 2026, who qualifies for the rebate, how much you can get back, and how to apply.
Does GST/HST Apply to Home Purchases?
Whether you pay GST/HST on a home purchase depends on the type of property:
| Property Type | GST/HST Applies? | Notes |
|---|---|---|
| New home from builder | Yes | Full GST/HST on purchase price; rebate may apply |
| Substantially renovated home | Yes | Treated same as new construction |
| Resale (used) home | No | Exempt from GST/HST |
| Rental residential property (new) | Yes | Different rebate available (rental housing rebate) |
| Vacant land (residential) | Usually No | Exceptions for subdivided or developed land |
If you are buying a resale home, you do not pay GST/HST. If you are buying new construction from a builder, you pay GST or HST on the full price — but the New Housing Rebate can significantly reduce that cost.
Federal GST/HST New Housing Rebate
The federal New Housing Rebate partially offsets the GST (or federal portion of HST) paid on a new home. To qualify:
- The home must be purchased from a builder as a primary place of residence for you or a qualifying relation (parent, child, etc.).
- The purchase price must be under $450,000 for the full rebate; a partial rebate applies between $350,000 and $450,000; no federal rebate above $450,000.
- You must be an individual (not a corporation or partnership).
Federal Rebate Amounts
- Homes under $350,000: Rebate = 36% of the GST paid, up to a maximum of $6,300.
- Homes $350,000–$450,000: Partial rebate, phased out linearly.
- Homes over $450,000: No federal rebate.
Ontario New Housing Rebate (HST)
Ontario is the most important province for this topic given its high home prices and HST system. Ontario's HST is 13% (5% federal + 8% provincial). There are two separate rebates:
1. Federal Portion Rebate (Ontario)
Same rules as the federal rebate above — up to $6,300 on homes under $350,000, phased out up to $450,000, nothing above $450,000.
2. Ontario Provincial Portion Rebate
Ontario offers a rebate on the provincial part of HST (8%) with no purchase price ceiling. This is one of the most valuable aspects of the Ontario program:
- Rebate = 75% of the Ontario portion of HST paid.
- Maximum rebate = $24,000.
- Applies to homes of any purchase price (no upper limit for the provincial portion).
Example: You buy a new condo in Toronto for $800,000. Federal rebate = $0 (over $450,000). Ontario provincial rebate = 75% × (8% × $800,000) = 75% × $64,000 = $48,000 — but capped at the $24,000 maximum. Total rebate = $24,000.
How the Rebate Is Usually Applied
In most new home purchases, the builder applies the rebate on your behalf at closing, reducing the amount you pay. The purchase price quoted by builders often already accounts for the rebate — but you must sign the rebate application as part of the closing documents and confirm the home will be your primary residence.
If the builder does not apply the rebate at closing (less common), you apply directly to the CRA within two years of the closing date using Form GST190 (federal rebate) and Ontario Form RC7190-ON (provincial rebate).
New Rental Housing Rebate
If you are purchasing a new home to rent out long-term (not as a primary residence), you do not qualify for the standard New Housing Rebate. However, a separate New Residential Rental Property Rebate may apply. This rebate uses similar percentages and thresholds but applies to investors and landlords buying newly built rental units. Apply using Form GST524.
Owner-Built Homes
If you build your own home on land you own, you may be eligible for a rebate on the GST/HST paid on construction services and materials. The rules are similar but the application process differs — you use Form GST191 and Form GST191-WS (calculation worksheet). The two-year application deadline still applies, running from the date construction is substantially complete.
The GST/HST New Housing Rebate can save you thousands of dollars on a new home purchase in Canada. In Ontario especially, the provincial rebate of up to $24,000 with no price ceiling is significant. Always confirm with your builder whether the rebate is being applied at closing, keep your purchase documents, and consult a tax professional if your situation is complex — particularly for owner-built homes or rental properties.