Quick Answer: The GST HST Rebate is a set of CRA programs that refund part of the tax you paid on a newly built or substantially renovated home. Most buyers claim it through the GST/HST new housing rebate, worth up to $6,300 federally and $24,000 in Ontario. First-time buyers and 2026 Ontario purchasers can claim far more.
What Is the GST HST Rebate?
The GST HST Rebate refunds part of the goods and services tax, or the federal and provincial parts of the harmonized sales tax, paid on new housing in Canada. The Canada Revenue Agency runs several versions: one for owner-occupied homes, one for rental properties, and a first-time buyer top-up that received royal assent in March 2026.
Resale homes don’t attract GST/HST at all, so none of this applies if you’re buying used.
Who Qualifies for a GST HST Rebate on a New Home?
Individuals qualify, corporations and partnerships do not. You must have bought a new or substantially renovated home from a builder, built one yourself, or bought co-op shares, and the home has to be the primary place of residence for you or a relation. Landlords qualify under a separate rental stream.
First-Time Buyers Can Now Recover Up to $50,000
The first-time home buyers’ GST/HST rebate wipes out the full 5% federal tax on a new home worth up to $1 million, then tapers to nothing at $1.5 million. CRA’s first-time buyer test is stricter than most people assume. You must be 18 or older, a Canadian citizen or permanent resident, and you cannot have lived in a home you or your spouse owned in the current calendar year or the previous four. One rebate per couple, ever. Your agreement of purchase and sale also has to be dated on or after March 20, 2025.
How the Ontario HST Rebate Changed in 2026
Ontario’s rebate used to stop at $24,000, being 75% of the 8% provincial portion on the first $400,000 of value. The 2026 Ontario budget lifted that ceiling temporarily. The Enhanced New Housing Rebate refunds 100% of the 8% on homes up to $1 million, to a maximum of $80,000, and the Ontario New Home Affordability Payment adds up to another $50,000 against the federal 5%. Stacked, the Ontario HST rebate reaches $130,000 on a single home. The window is tight: your agreement has to be signed between April 1, 2026 and March 31, 2027. Owner-built homes qualify if construction starts in that same window.
Rental Property HST Rebate Rules for Landlords
Buy a new condo to rent out and you pay HST at closing with no input tax credit available, because long-term residential rent is an exempt supply. The rental property HST rebate exists to close that gap. The federal portion returns 36% of the GST paid, capped at $6,300, and only where fair market value sits under $450,000. Ontario’s share still runs to $24,000 at any price. Sell the unit within a year of first occupancy to someone who isn’t moving in, and you repay the rebate plus prescribed interest.
| Rebate stream | Federal max | Ontario max | Key condition |
|---|---|---|---|
| New housing rebate | $6,300 | $24,000 | Primary residence; federal part needs FMV under $450,000 |
| First-time home buyers’ rebate | $50,000 | $80,000 | Agreement dated on or after March 20, 2025 |
| Ontario enhanced rebate | Up to $50,000 via ONHAP | $80,000 | Agreement dated April 1, 2026 to March 31, 2027 |
| Rental property rebate | $6,300 | $24,000 | Long-term lease; tenant is first occupant |
How Do You Claim a GST Reclaim on a New Build?
Two routes exist. The builder credits the rebate against your purchase price at closing so you never front the cash, or you pay the full tax and file your own GST reclaim with the CRA afterward. Which route applies depends on the rebate stream and, in Ontario, on your closing date.
When the Builder Rebate Lands on Your Statement of Adjustments
Most buyers purchasing from a builder assign the rebate and see it come straight off the price. Two limits matter. Builders cannot credit the Ontario enhanced rebate where HST became payable before the federal regulations were made on June 12, 2026, so anyone who closed in spring 2026 pays in full and files afterward. Builders can never credit the rental rebate. And if the builder credits you an amount you weren’t entitled to, CRA collects it back from you, not from them. Confirm eligibility before you sign, ideally while you’re still working through budget planning for the build.
Filing Your Own Claim with the CRA
Which forms you need depends on how the home came to exist. Buying from a builder means Form GST190 plus the RC7190-ON schedule for the Ontario portion. Owner-built homes use GST191 with the GST191-WS construction worksheet, which is where receipts from your general contractor and trades get tallied. Landlords file GST524. You generally have two years to apply, and CRA asks you to keep original invoices for six years. Photocopies, quotes and Interac slips are rejected on audit, so this matters when you’re weighing a renovation against a full rebuild and tracking spend across a long project.
One more thing worth clearing up. Plenty of people searching for a Canada GST rebate aren’t after housing money at all, they mean the quarterly cheque. That program was renamed the Canada Groceries and Essentials Benefit in July 2026 and payments rose 25%. Maximums for the July 2026 to June 2027 year are $679 for a single person, $890 for a couple, and $234 per child under 19. There’s no application. File your return and CRA calculates it.
Frequently Asked Questions
1. How much is the GST HST rebate on a new home in Canada?
Outside Ontario’s temporary program, the federal maximum is $6,300 and Ontario’s is $24,000, so $30,300 combined. First-time buyers can reach $130,000 in Ontario. The federal share phases out entirely once the purchase price passes $450,000.
2. Who qualifies for GST relief as a first-time home buyer?
CRA applies four tests and you must pass all of them:
- You’re 18 or older and a Canadian citizen or permanent resident
- Neither you nor your spouse owned and lived in a home in the current or previous four calendar years
- Neither of you has claimed this rebate before
- The home is your primary residence and you are its first occupant
3. Can I claim an HST refund if I built my own house?
Yes. Owner-built homes qualify under the same rules, filed on Form GST191 with the GST191-WS worksheet. A substantial renovation counts too, but CRA’s bar is high: at least 90% of the interior of the existing house must be removed or replaced.
4. How long do I have to apply for an HST refund on a new build?
Two years, generally measured from the date ownership transfers or the tax first becomes payable. Owner-built claims run from substantial completion. Miss the deadline and the money is gone, which is the single most common reason otherwise-valid claims fail.
5. Does the builder rebate reduce my mortgage or my closing costs?
It reduces the amount you owe on closing, which lowers the cash you bring to the table rather than your mortgage principal. If you claim directly from CRA instead, you fund the full HST at closing and receive a cheque or deposit weeks later.
Conclusion
The GST HST Rebate is worth real money on a new build, and in Ontario right now it’s worth an unusual amount of money. The programs stack in ways that aren’t obvious from any single CRA page, the deadlines are firm, and eligibility gets decided by details buried in your purchase agreement or your construction start date. Work it out before you sign, not after you close. If you’re planning a custom home or major addition in the GTA, the rebate belongs in the budget from day one.
