How to Apply for the GST/HST New Residential Rental Property Rebate

If you bought a newly built or substantially renovated unit and rent it out, you may be able to recover part of the GST/HST you paid. The rebate is not automatic. You have to ask for it, and the CRA wants to see paperwork that proves the unit qualifies.

This article walks through the process in the order most landlords meet it: checking that you qualify, gathering documents, completing the GST524 application and sending it in. It explains how things generally work. Your own facts, such as how you bought the unit and who owns it, can change the answer, so an accountant or lawyer can confirm your situation.

Who applies, and to whom

The purchaser or landlord applies directly to the CRA. The builder cannot credit the rebate to you on closing, so you should not expect to see it on your statement of adjustments.

There are two layers to the rebate. The federal rebate is available only where the unit's fair market value is under $450,000, and it phases down between $350,000 and $450,000. The Ontario rebate is 75% of the provincial part of the HST, up to $24,000 per qualifying unit, regardless of fair market value. You do not file two separate applications: one GST524 covers both, with the Ontario schedule RC7524-ON attached.

Even if only the Ontario portion applies to you, you must still file the GST524.

Check that you meet the conditions first

Before filling anything in, confirm the basic conditions in the Excise Tax Act. The claimant must be one of the following: a non-builder buyer of a residential complex (and not a co-op housing corporation), or a builder deemed to purchase on a lease. Tax must first have become payable, the unit must be a qualifying residential unit of the person, and the person cannot be able to claim an input tax credit for the tax.

The CRA also looks for long-term residential use of the unit. If your unit was bought for short stays or for your own use, this rebate may not be the right one.

• You paid GST/HST on a new or substantially renovated unit that you rent, or intend to rent, as a long-term residence.
• You are not able to claim an input tax credit for that tax.
• You can show who the purchaser is and which unit is being rented.
• You still have time to file.

Documents to gather

What you send depends on your role. The CRA lists different documents for a purchaser who is also the landlord and for a builder who is also the landlord.

Your real estate lawyer's closing package usually holds the statement of adjustments and the purchase agreement. If you cannot find them, ask for copies early, because the rest of the application depends on them.

Completing and sending the GST524

• Confirm you meet the qualifying conditions for your type of claimant.
• Complete the GST524 application for the rebate.
• Attach the Ontario schedule RC7524-ON so the Ontario rebate is included.
• Include the supporting documents that match your role.
• Send the forms or file them online through a CRA account.
• Keep a full copy of everything you send, along with proof of when you sent it.

Take care with the dates. A purchaser or landlord must file within two years after the end of the month in which tax first became payable on the purchase, and no rebate is paid unless the application is filed within that time.

Some projects fall under special rules. For example, purpose-built rental housing can qualify for a federal rebate of 100% of the GST or federal part of HST with no phase-out, but only where construction began after September 13, 2023 and before 2031, it is substantially completed before 2036, and the unit-count and rental-use tests are met. Substantial renovations have their own separate conditions: construction or renovation must begin between April 1, 2026 and March 31, 2027, and the fair market value must be under $1,850,000. If your project is in one of these categories, confirm the details before filing.

What to do next

Start by finding your closing date and your statement of adjustments, since the filing window runs from the end of the month in which tax first became payable. Then collect the purchase agreement and lease, and set up or check your CRA online account so you can file electronically.

If you hold the unit with others, bought through a corporation, or are unsure whether you can claim an input tax credit, speak to an accountant or lawyer before filing. Mistakes in who the claimant is can be hard to fix once the window has closed.

Frequently asked questions