The GST / HST New Housing Rebate is a way for to recover a part of the GST or the federal portion of the HST paid when buying a newly built home or one that was heavily renovated.
To qualify for the rebate, this property must be the person or a member of their family’s primary living space.
How Much Is The GST / HST New Housing Rebate?
The GST / HST New Housing Rebate is equal to 36% of the GST that individuals are paying on their brand-new home.
It is capped at $6,300 on homes with a fair market value equal to or less than $350,000.
The maximum allowable limit could be higher depending on the exact GST / HST rate you paid for your purchase.
You could still receive a partial credit if your home has a fair market value equal to or less than $450,000.
For provinces that pay HST like Ontario, PEI, Newfoundland and Labrador and New Brunswick, the 36% only applies to the federal GST portion of the HST.
Each province handles it a bit differently, so you may still qualify for province-specific rebates on the rest of the HST.
For example, in Ontario, homebuyers can claim an extra 75% on the provincial tax portion, regardless of the fair market value of the home, with a cap on the rebate.
The rebate will vary based on whether you paid the HST on the land during purchase.
The rebate in Ontario is limited to a maximum of $24,000 if HST was paid, and $16,080 if it wasn’t.
GST / HST New Housing Rebate Eligibility
To qualify for a full or partial GST / HST New Housing Rebate, you must:
- Have bought a brand-new or heavily renovated home from a builder, including housing on leased land (however, the lease must be for a minimum of 20 years or must offer you the option to buy the land) for use as your or a family member’s primary home
- Bought shares in a co-operative home to use as your or a family member’s primary home
- Built or hired someone to build or heavily renovate your own home to use as your or a family member’s primary home
Keep in mind that these homes can be mobile homes, modular homes, floating homes, condos, townhouses, semis, and singles.
If the home is owned or co-owned by a corporation or a partnership, it won’t be eligible for the GST / HST New Housing Rebate.
If you are planning to apply for the GST / HST New Housing Rebate, you must do it within 2 years of the closing date of the home, or within 2 years of the completion of construction, if it’s a renovation.
How To Claim The GST / HST New Housing Rebate
To claim the GST / HST New Housing Rebate, you will need to apply for it.
You can apply by filling out and submitting one form which shows your GST rebate calculation, and an application form.
Provinces that charge HST require another form as well.
The forms should be sent to one of the provincial tax centres.
Most of the time, no supporting documents are required with your application.
However, you may still need to give proof that you or a family member is living in the home, or you may need to submit some invoices.
Since the whole process is subject to audit, it may take up to 6 months for you to get your payment.
Make sure you keep all your original invoices, filled-out forms and any supplemental documentation for up to 6 years as per the CRA’s record-keeping policies.
Frequently Asked Questions
- What is a HST rebate?
The HST rebate program gives you back a significant amount of the HST you would have paid when purchasing a new home. The HST rebate amount that you get will vary based on how much the new home is worth
- How much is the HST rebate in Ontario?
HST in Ontario is equal to 13% and combines both the federal portion, GST, which is 5% and the provincial sales tax which is 8%.
For the federal GST portion, the maximum rebate is 36%, up to $6,300. If the home has a fair market value over $450,000, you won’t receive any rebate.
On top of that, homebuyers can claim 75% on the provincial portion, regardless of the fair market value of the home. This amount will vary based on whether you paid the HST on the land during purchase. The rebate is limited to a maximum of $24,000 if HST was paid, and $16,080 if it wasn’t.