If you’re purchasing or building a new home in Canada, you might be eligible for a significant refund on the taxes you pay. It’s called the GST/HST New Housing Rebate, and it’s designed to return part of the federal (and in some provinces, provincial) sales taxes on your new home purchase.
Many first-time buyers don’t realize that this rebate exists—or that it can put thousands of dollars back in your pocket. Here’s how it works.
What Is the GST/HST New Housing Rebate?
When you buy a newly constructed or substantially renovated home, you’re charged GST (5%) or HST (13% or 15%) depending on your province. The New Housing Rebate allows you to recover part of that tax if:
- You bought the home from a builder
- You built or substantially renovated the home yourself
- The home is your primary residence
Eligible buyers can receive a rebate of up to 36% of the GST paid on homes valued up to $350,000 (with partial rebates for homes up to $450,000). In provinces with HST, provincial portions may also be rebated.
Who Can Apply?
- Home must be used as a primary place of residence
- You or a close family member must live in the home
- Applies to owner-built homes, builder-purchased homes, and even land purchases in certain cases
Provincial Differences
The rules vary by province:
- Ontario: Offers a separate Ontario New Housing Rebate
- British Columbia: Rebate applies up to $525,000 (newly built homes)
- Nova Scotia, PEI, Newfoundland: Partial HST rebates available
Always check both federal and provincial programs—you may qualify for both!
How Do You Claim It?
Most buyers will complete Form GST191 and submit it with their tax return. If you purchased from a builder, they may apply for the rebate on your behalf and reduce the amount you pay up front.
Can It Be Combined With Other Benefits?
Yes! You can combine this rebate with:
- First Home Savings Account (FHSA)
- Home Buyers’ Plan (HBP)
- First-Time Home Buyers’ Tax Credit
Why Use the New Housing Rebate?
This rebate directly reduces the cost of buying or building your home. For many buyers, it’s one of the most substantial refunds available—and it’s often overlooked.
If you’re buying new, renovating, or self-building, check your eligibility. You could be entitled to thousands in tax refunds.
