Owner-Built Home: Can You Claim the GST/HST Rebate in Canada?

If you built your own house, or hired a contractor to build it for you, you probably paid GST or HST on materials and services. A federal rebate can return part of that tax, but only when several conditions are met.

This article walks through who qualifies, how the amount is worked out, how the deadline is set and what records to keep. It covers federal rules only. If your project is unusual, a lawyer or accountant can confirm how the rules apply.

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

Who can claim an owner-built rebate

Under section 256(2) of the Excise Tax Act, an individual who constructs or substantially renovates a single unit residential complex or condo unit, or hires someone to do so, can claim if it is for their or a relation's primary residence and the fair market value on substantial completion is under $450,000.

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

• Primary residence: your intent to use the house as your or a relation's primary place of residence must be evident at the outset.
• Not qualifying: a recreational cottage, an investment property, or a house you plan to use later, such as in retirement.
• Relations: blood relatives, spouses, common-law partners and adoptive relations count, and for this rebate former spouses and former common-law partners count too.
• Co-owners: only one individual can claim, and the other owners are listed as co-owners on the form.

How the amount is worked out

The base rebate is A × ($450,000 − B) ÷ $100,000. A is the lesser of 36% of the tax paid and $6,300, at 5% GST, and B is the greater of $350,000 and the fair market value.

Fair market value means the highest price in an open and unrestricted market. For owner-built homes the thresholds are tested against that value rather than a purchase price. This is why an appraisal or valuation may matter, and a lawyer or accountant can help you think through it.

A first-time buyer top-up may also exist for owner-built homes. Construction or renovation must begin after March 19, 2025 and before 2031 and be substantially complete before 2036. The amount is A × [($1,500,000 − B) ÷ $500,000] minus any regular rebate, where A is the lesser of $50,000 and tax paid, and B is the greater of $1,000,000 and the fair market value. The first-time buyer eligibility tests still apply.

The deadline and the base date

You must apply within two years after the base date. The base date is the earliest of two years after first occupancy, the ownership transfer date, or substantial completion. For example, if substantial completion is April 30, 2026, the deadline is April 30, 2028.

Moving in later does not push the date back. In CRA's example, the owner moved in on May 31, 2026, yet the deadline still runs from the April 30, 2026 base date. The statute sets no number of days within which you must move in.

The Minister may allow a later filing, but CRA considers late owner-built requests only in extraordinary circumstances. Do not count on it.

Renovations, records and selling the house

A substantial renovation can qualify like a new build. Generally, 90% or more of the interior of an existing house must be removed or replaced, counting only livable areas.

Records matter. Only original invoices in the name of the claimant or the co-owners are accepted. Send invoices only where GST/HST was not charged, and keep original invoices and records for six years.

Selling soon after finishing can raise issues. The sale of an owner-built house is generally exempt if you are not a builder for GST/HST purposes and claimed no input tax credits, but the sale may be taxable if you had a primary or secondary intention to sell. A rebate you were not entitled to must be repaid.

What to do next

• Work out the substantial completion date and calendar the deadline two years from the base date.
• Gather original invoices in your name or your co-owners' names, send only those where GST/HST was not charged, and keep all of them for six years.
• Confirm that the house is for your or a relation's primary residence and that no corporation or partnership co-owns it.
• Get a fair market value view if your project is near the $450,000 line.
• Speak to a lawyer or accountant if you plan to sell soon, or if you acted as a builder in the past.

Frequently asked questions