GST/HST New Housing Rebate: Who Can Claim It in Canada

Buying a newly built home means paying GST or HST on the price, and that tax can be a large amount. The federal government refunds part of it in some cases, but the rules about who qualifies, how the home will be used and what price it can be are strict.

This article explains who can claim the federal GST/HST new housing rebate when buying from a builder. It covers the buyer tests, the price limits, and how the first-time home buyer rebate works alongside it. Your own facts matter, so confirm anything borderline with a lawyer or accountant.

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

What the rebate is

The rebate is a refund of part of the GST, or the federal part of the HST, you paid on a new home. It applies where a builder sells a new single unit residential complex or a residential condominium unit to an individual who acquires it as their own or a relation's primary place of residence.

It is calculated on the tax paid, not on the price. CRA's guide says to multiply the GST or federal HST paid by 36%, capped at $6,300.

The statute also requires that the total consideration is under $450,000, that you have paid all applicable tax, and that ownership transfers after substantial completion.

Who counts as an eligible buyer

Only individuals can claim the new housing rebate. Partnerships and corporations cannot, and an individual cannot claim if a partnership or corporation co-owns the house.

The home must be intended as a primary place of residence for you or a relation, and that intent must be evident at the outset of buying. A recreational cottage, an investment property, or a house you plan to use at a more distant time, such as retirement, does not qualify.

• The first person to occupy the home as a residence must be you or a relation of yours, unless you make an exempt sale of the home before anyone occupies it.
• A parent buying for an adult child or other relation who will live there may qualify if all other conditions are met.
• Relation includes blood relatives, spouses, common-law partners and adoptive relations, and for this rebate only, former spouses and former common-law partners also count.
• If several people own the home, only one individual can claim, and the rebate can apply if at least one of the individuals meets the conditions.

The statute does not set a number of days within which you must move in. The intent test is judged at the outset, so keep records showing why you bought.

Price limits and how much you can get

For a house bought from a builder, the price thresholds are tested against total consideration, meaning the purchase price excluding GST/HST and certain other amounts.

For example, with 5% GST paid on a $400,000 home, the starting amount is capped at $6,300, and the rebate becomes $6,300 × ($450,000 − $400,000) ÷ $100,000, which is $3,150.

If the home is on leased land or is a co-op share, the thresholds are tested differently, and CRA uses $472,500 for the base test.

The first-time home buyer rebate

For homes above the base-rebate limit, the first-time home buyer rebate may help. For total consideration of $1,000,000 or less, it is the lesser of $50,000 and the tax paid, minus any base rebate. Between $1,000,000 and $1,500,000 it phases out, and at $1,500,000 or more it is nil.

• You must be at least 18, a Canadian citizen or permanent resident, and be buying as your primary residence and be the first occupant.
• You must not have lived in a home you owned, alone or jointly, as your primary residence in the current calendar year or the previous four years.
• Neither you nor your spouse or common-law partner can have received this rebate before, and your spouse's or partner's prior home ownership counts against you.
• The agreement of purchase and sale must be entered into after March 19, 2025 and before 2031, and ownership must transfer before 2036.

If you fail the first-time buyer test you may still qualify for the regular rebate, and if you pass, the first-time buyer rebate can be claimed in addition to it as a top-up. If you took over another person's builder agreement, or cancelled and replaced an earlier agreement, the first-time buyer rebate may be disallowed depending on when the original agreement was signed. How this applies depends on your dates, so it is worth confirming with a lawyer. Check the agreement date carefully if you bought by assignment.

What to do next

• Confirm the home is a new or substantially renovated home bought from a builder, and note the total consideration on your agreement.
• Confirm the buyer is an individual, not a corporation or partnership, and that no such entity co-owns the home.
• Decide who among the co-owners will be the claimant.
• Check your first-time buyer history, including your spouse's or partner's.
• Keep your agreement, statement of adjustments and proof of intent to live in the home.
• Ask a lawyer or accountant before closing if your purchase is an assignment, involves a corporation, or is a mixed-use property.

If you are buying through a corporation or holding the home for someone else, the answer can change, so get advice before you sign.

Frequently asked questions