How Much Is the GST/HST New Housing Rebate? Calculating the $350,000–$450,000 Phase-Out in Canada

This answer covers Canadian federal tax law, which applies in every province.

The federal GST/HST new housing rebate for a home bought from a builder is 36% of the GST or federal part of the HST you paid, up to $6,300, and it shrinks to nothing as the price rises from $350,000 to $450,000. It applies only if you are an individual buying as the primary residence of you or a relation, you have paid all the tax, ownership transfers after substantial completion, and the first occupant is you or a relation (or you make an exempt sale before anyone moves in).

For a builder purchase, the price limits are tested against total consideration, which is the purchase price before GST/HST and certain other amounts. Owner-built homes are tested against fair market value instead. With 5% GST paid on a $400,000 home, the rebate works out to $3,150 under the phase-out formula. At $450,000 or more, the base rebate is nil.

On Form GST190, line 1 is the tax paid, line 2 is the price paid to the builder excluding tax, line 3 is 36% of line 1 up to the maximum, and line 4 carries to line C. Above $450,000, a separate first-time buyer rebate may apply if you qualify, and it is covered in its own article.