- The main rebates for landlords who buy a new or substantially renovated rental are the federal and Ontario new residential rental property (NRRP) rebates.
- The federal rebate phases out between $350,000 and $450,000 of fair market value, while the Ontario rebate applies regardless of fair market value.
- You apply directly to the CRA on one GST524 application, and the filing deadline is strict.
- Purpose-built rental and substantial renovation projects have their own separate rules, so check which one fits your project.
If you are a landlord or investor, you may have heard that you can get back some of the GST or HST you paid on a new rental property. These are known as the new residential rental property rebates, and they can be worth a lot, but they are not automatic and they come with conditions.
This article gives an overview of the federal and Ontario rebates, who tends to qualify, what you need to file and the deadline that catches people out. It is general information, and a lawyer or accountant should confirm how it applies to your purchase.
The two main rebates: federal and Ontario
There are two layers. The federal rebate recovers part of the GST or the federal part of HST. The Ontario rebate recovers part of the provincial part of HST. One application, the GST524, covers both, with the Ontario schedule RC7524-ON attached.
| Federal rebate | Ontario rebate | |
|---|---|---|
| How it is calculated | A x ($450,000 - B) / $100,000, where A is the lesser of $6,300 and 36% of the GST or federal HST payable, and B is the greater of $350,000 and the unit's fair market value | 75% of the provincial part (8%) of HST, up to $24,000 per qualifying unit |
| Fair market value | Must be under $450,000, and the rebate reduces gradually between $350,000 and $450,000 | Applies regardless of fair market value |
| Leased land | Not covered in the rules above | Cap of $7,920 per lot or site |
If the unit is worth $450,000 or more, there is no federal rebate, but the Ontario rebate may still apply.
Who qualifies
The federal rules in the Excise Tax Act set out several conditions. The claimant must not be a co-op housing corporation and must be a non-builder buyer of a residential complex, or a builder deemed to purchase on a lease. Tax must first become payable, the unit must be a qualifying residential unit of the person, and the person must not be able to claim an input tax credit for the tax.
CRA also says the federal rebate requires long-term residential use of the unit. In plain terms, the rebate is aimed at people who buy a unit to rent out as a home, not to flip or use as short-term accommodation. If your plan is mixed or unusual, get advice before you buy.
Special rules for purpose-built and renovated rentals
The standard rules above are not the only ones. Two other categories have their own conditions.
- Purpose-built rental housing: the federal rebate rises to 100% of the GST or federal part of HST with no phase-out thresholds, where construction begins after September 13, 2023 but before 2031 and is substantially completed before 2036. It needs at least 4 units, each with a private kitchen, bath and living area, or 10 or more units, with at least 90% held for qualifying rental.
- Substantial renovation (Type 6), for construction starting on or after April 1, 2026: construction or substantial renovation must begin between April 1, 2026 and March 31, 2027, be substantially completed by December 31, 2029, with tax payable by December 31, 2032, and fair market value under $1,850,000.
You may also see announcements about temporary enhancements to the HST rental rebate. Do not rely on a proposal until you have confirmed with the CRA or Ontario that it is in force for your purchase date.
How to apply and the deadline
You apply directly to the CRA. A builder cannot credit the rebate for you. The GST524 must be filed even if only the Ontario portion applies. Forms can be sent or filed online through a CRA account.
A purchaser who is also the landlord should expect to provide a copy of the statement of adjustments, the signed purchase and sale agreement (excluding attachments) and the rental or lease agreement. A builder who is also the landlord provides a copy of the rental or lease agreement.
The deadline is firm. A purchaser or landlord must file within two years after the end of the month in which tax first becomes payable on the purchase, and the Act says no rebate is paid unless the application is filed within that time. Whether any relief exists for a late claim depends on the facts, so ask an accountant or lawyer quickly if you have missed it.
What to do next
- Work out which category your property falls into: standard new rental, purpose-built rental or substantial renovation.
- Get the unit's fair market value, since it affects the federal rebate.
- Keep the statement of adjustments, signed agreement and lease together.
- Note the month in which tax first became payable and mark the two-year deadline.
- Prepare the GST524 with the Ontario schedule RC7524-ON.
- Ask an accountant or lawyer to confirm that you meet each condition before you file.
Frequently asked questions
Do I apply for the rebate through my builder?
No. The purchaser or landlord applies directly to the CRA, and builders cannot credit the rebate.
Is there one form for both the federal and Ontario rebates?
Yes. One GST524 application covers both, with the Ontario schedule RC7524-ON attached, and it must be filed even if only the Ontario portion applies.
What if my unit is worth more than $450,000?
There is no federal rebate at $450,000 or more, but the Ontario rebate may still apply. The Ontario rebate applies regardless of fair market value.
What happens if I miss the filing deadline?
The Act says no rebate is paid unless the application is filed within two years after the end of the month in which tax first becomes payable. Whether any relief is possible depends on your situation, so speak to an accountant or lawyer promptly.
Sources
- Justice Laws – Excise Tax Act s. 256.2 — Justice Laws (federal)
- CRA – RC4231 GST/HST NRRP Rebate — canada.ca
- CRA – GI-093 Ontario NRRP Rebate — canada.ca
- CRA – GST/HST new residential rental property rebate — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.