GST or HST Rebate on New Homes in Canada 2021
The GST/HST New Housing Rebate
When you purchase newly built or heavily renovated housing, you would have to pay a sales tax on top of the purchase price which consists of a federal portion and a provincial portion that in some provinces are kept separate while in others are combined to be called the Harmonized Sales Tax (HST). The GST/HST new housing rebate allows you to take back some of the federal portion of the tax also known as the Goods and Services tax (GST), and in select provinces there may also be rebates for the provincial part of the tax.
Important Notes:
- The amount of federal rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300, and disappears entirely once the home price exceeds $450,000.
Eligibility for the GST/HST New Housing Rebate
Depending on your conditions and province, you may be eligible for both the provincial and federal rebate, only the provincial rebate, or only the federal rebate. In general, you may be eligible for the rebate if any of the following applies:
- You purchased newly constructed or heavily renovated housing for residential purposes that stands on purchased land or land that will be leased for more than 20 years
- You purchased co-operative housing complex shares for residential purchases
- You have heavily renovated your home (meaning more than 90% of the interior must have been removed or replaced)
On top of standard types of housing, the rebate is also available for mobile homes and floating homes that are used for primary residential purposes. The rebate is not available for corporations or partnerships.
The property purchase price without tax must be under $450,000 to receive rebate for the GST or the federal portion of HST. However, if the value is above the threshold, you may still be eligible to receive tax rebate for the provincial portion if the province offers it.
Types and Rates of Rebate
There are two types of rebates available with differing rates: rebate for owner-built houses and rebate for housing purchased from builders.
You may be considered to be a builder if:
- You are in the business of constructing or renovating houses for sale;
- AND You are the manufacturer or vendor of a new home;
- OR You bought an unoccupied home to resale;
- OR You have helped with completing with construction or renovation of the property;
- OR You have converted non-residential property to a residential property.
The term generally only refers to people who have interest in the land for business purposes and have renovated, reconstructed, or bought the property for trading purposes. As such, most people who buy or reconstruct their property that will be their residence will not be considered a builder. People who are considered to be builders are able to apply for the rebate for owner-built houses.
Our calculator calculates the rebate for housing purchased from builders, which applies to the vast majority of home-buyers. There are three different rates for the GST or federal portion of the HST rebate for three different situations:
- You purchased both the property and the land it sits on
- You purchased the property and leased the land it sits on
- You purchased a share of co-operative housing
Our calculator provides calculations with rates for the first case, which is also the most common one.
How to Apply for the GST/HST New Housing Rebate
To apply for the rebate, you are at minimum required to submit two forms provided on the government website: one showing the calculation of your rebate for GST, and the other an application form. For provinces that also deduct some of the provincial taxes which are Ontario, BC, Nova Scotia, and Saskatchewan, you will also need to submit an additional form. The forms should be mailed to the provided tax centres on the government website.
Although no supporting documents are needed, you may be asked to provide proof of occupancy or invoices. You will receive your payment after up to six months. Keep in mind that there is a deadline for submitting the application, which is generally two years after the base date determined on the forms.
We have provided more specifics on the provincial rebate information for each province below:
Ontario New Housing Rebate
The HST in Ontario is 13% in which GST is 5% and the provincial sales tax is 8%.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
The amount of rebate you can receive for the PST Portion is 75% of the PST tax amount up to a maximum of $24,000 if you paid HST on the land the property is on, and $16,080 if not.
BC New Housing Rebate
The GST and PST in BC are 5% and 7% respectively.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
You are only eligible to receive the rebate for PST if the ownership-transfer date or the date marking 60 days after the condominium registration is before April 1, 2013. However, you may be eligible for the BC Transition Tax Rebate which is meant to compensate for purchases after the date.
Nova Scotia New Housing Rebate
The HST in Nova Scotia is 15% in which GST is 5% and the provincial sales tax is 10%.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
The amount of rebate you can receive for the PST Portion is 18.75% of the PST tax amount up to a maximum of $3,000.
Saskatchewan New Housing Rebate
The GST and PST in Saskatchewan are 5% and 6% respectively.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
If the purchase price of the property is less than $350,000, the amount of rebate you can receive for the PST Portion is 42% of the tax amount. The rebate rate is then progressively reduced until the purchase price reaches $450,000, after which no rebate for PST is eligible.
Quebec New Housing Rebate
The GST and QST in Quebec are 5% and 9.975% respectively.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
If the purchase price of the property is less than $200,000, the amount of rebate you can receive for the PST Portion is 50% of the QST tax amount up to a maximum of $9,975. The rebate rate is then progressively reduced until the purchase price reaches $300,000, after which no rebate for QST is eligible.
Alberta New Housing Rebate
The GST in Alberta and there is no provincial sales tax.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
Manitoba New Housing Rebate
The GST and RST in Manitoba are 5% and 7% respectively.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
There is no rebate for the provincial tax portion available.
New Brunswick New Housing Rebate
The HST in New Brunswick is 15% in which GST is 5% and the provincial sales tax is 10%. The tax is due when you buy new housing in New Brunswick.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
There is no rebate for the provincial tax portion available.
Newfoundland and Labrador New Housing Rebate
The HST in Newfoundland and Labrador is 15% in which GST is 5% and the provincial sales tax is 10%.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
There is no rebate for the provincial tax portion available.
Northwest Territories New Housing Rebate
The GST in Northwest Territories is 5%, and there is no provincial sales tax.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
Nunavut New Housing Rebate
The GST in Nunavut is 5%, and there is no provincial sales tax.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
Prince Edward Island New Housing Rebate
The HST in Prince Edward Island is 15% in which GST is 5% and the provincial sales tax is 10%.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
You may be eligible for the PEI Transition Tax Rebate for the PST portion.
Yukon New Housing Rebate
The GST in Yukon is 5%, and there is no provincial sales tax.
The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300.
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