Costs, Comparisons and 2026 Rules
GST/HST on a new home and the first-time buyer GST rebate (2026 guide)
When GST or HST applies to a home purchase, how the First-Time Home Buyers' GST Rebate of up to $50,000 works, and how it fits with existing new housing rebates.
GST or HST applies when you buy a new or substantially renovated home from a builder, but normally not when you buy a resale home. Since Bill C-4 received Royal Assent on 12 March 2026, first-time buyers can recover the full 5% GST (or the 5% federal part of HST), up to $50,000, on a new home priced up to $1,000,000, with the rebate shrinking to zero at $1,500,000. It applies to agreements of purchase and sale entered into after 19 March 2025 and before 2031. The older GST/HST new housing rebate (up to $6,300) and provincial rebates such as Ontario's (up to $24,000) still exist with their own conditions.
This guide belongs to Costs, Comparisons and 2026 Rules. For the arithmetic of new versus resale, see new build vs resale tax math.
When GST/HST applies to housing
| Purchase | GST/HST on the price? |
|---|---|
| Resale house or condo lived in before | Generally no (exempt) |
| New house or condo from a builder | Yes |
| Substantially renovated home (most of the interior rebuilt) | Yes, sold by the renovator |
| Owner-built home (you hire contractors) | GST/HST on the materials and services you buy |
| Vacant land from an individual for personal use | Often exempt; land from a business is usually taxable |
| Commission, legal and notary fees on any purchase | Yes |
The rate is 5% GST in Alberta, BC, Saskatchewan, Manitoba and the territories; 13% HST in Ontario; 14% HST in Nova Scotia; 15% HST in New Brunswick, Newfoundland and Labrador and PEI; and 5% GST plus 9.975% QST in Quebec.
The First-Time Home Buyers' GST Rebate
| Condition | Rule |
|---|---|
| Buyer | At least 18, Canadian citizen or permanent resident |
| First-time buyer | You have not lived in a home that you, or your spouse or common-law partner, owned in the current calendar year or the four preceding years |
| Home | New or substantially renovated, bought from a builder, or owner-built; must be your primary place of residence and you must be the first to occupy it |
| Agreement date | After 19 March 2025 and before 2031 |
| Construction | Starts before 2031 and is substantially completed before 2036 |
| Amount | GST (or federal part of HST) paid, up to $50,000, for homes up to $1,000,000 |
| Phase-out | Between $1,000,000 and $1,500,000 the maximum falls in a straight line; zero at $1,500,000 or more |
| Lifetime limit | Once per person; not available if your spouse or partner has already claimed it |
When the bill was first announced, the start date was 27 May 2025; it was moved earlier during the legislative process to cover agreements from 20 March 2025. Check the CRA's page for forms and claim deadlines, especially if you took possession before Royal Assent.
Phase-out formula. Rebate = $50,000 x ($1,500,000 - price) / $500,000, capped at the GST actually paid.
| Price of new home | GST at 5% | FTHB GST rebate | GST left to pay |
|---|---|---|---|
| $600,000 | $30,000 | $30,000 | $0 |
| $1,000,000 | $50,000 | $50,000 | $0 |
| $1,200,000 | $60,000 | $30,000 | $30,000 |
| $1,400,000 | $70,000 | $10,000 | $60,000 |
| $1,500,000 | $75,000 | $0 | $75,000 |
The older rebates still matter
GST/HST new housing rebate (federal). 36% of the GST (or federal part of HST) up to $6,300, for homes under $350,000, phased out at $450,000. In practice it only helps lower-priced homes. You cannot normally get both this rebate and the first-time buyer rebate on the federal part for the same home; ask the builder or the CRA how the two interact.
Ontario new housing rebate. Up to $24,000 of the 8% provincial part of HST, with no price cap, for a home you or a relative will live in. Builders usually credit it in the price.
Ontario first-time buyer relief on the provincial part. Announced in October 2025 and in place since the federal first-time buyer rebate was enacted in March 2026: for first-time buyers who meet the federal conditions, Ontario rebates the full 8% provincial part of HST on new homes up to $1,000,000, with a reduced rebate between $1,000,000 and $1,500,000, for agreements from 20 March 2025 to the end of 2030. Ontario's 2026 Budget then announced a temporary rebate of the full 13% HST on new homes up to $1,000,000 for all buyers, for agreements signed from 1 April 2026 to 31 March 2027; Ontario passed its law in May 2026, but the federal side and the CRA application process still had to be put in place. Check ontario.ca and the CRA for current status and forms before you rely on either figure.
Quebec and other provinces. Quebec has its own QST new housing rebate with its own thresholds, administered by Revenu Québec. Nova Scotia and other HST provinces have their own rules for the provincial part. Check the provincial source.
How builders handle rebates
Most new-home prices are quoted including GST/HST net of rebates the buyer assigns to the builder. The builder credits the rebate at closing and claims it from the government. Two consequences follow:
- If you turn out not to qualify (for example because you are not a first-time buyer, or you plan to rent the unit), the builder will charge you the rebate amount on closing.
- If your price does not assume the first-time buyer rebate, you may need to apply to the CRA directly after closing, or ask the builder to credit it.
Read the HST schedule in your agreement and ask the builder in writing which rebates are assumed.
Worked example (illustrative)
A first-time buyer signs in 2026 for a new $1,200,000 townhouse in Calgary. GST is $60,000. Rebate = $50,000 x ($1,500,000 - $1,200,000) / $500,000 = $30,000. Net GST = $30,000. Alberta has no land transfer tax, so the remaining closing costs are land titles fees and legal fees.
The same buyer in Ontario: HST at 13% = $156,000, of which $60,000 is federal and $96,000 provincial. FTHB GST rebate $30,000. On the provincial part, the basic Ontario new housing rebate alone ($24,000) would leave net HST of $102,000; because the price is between $1,000,000 and $1,500,000, the Ontario first-time buyer relief gives a reduced rebate larger than that, so the actual figure is lower. Ask the builder or the CRA for the exact provincial amount.
Frequently asked questions
Does the first-time buyer GST rebate apply to resale homes?
No. Resale homes are generally exempt from GST/HST, so there is nothing to rebate.
Can I claim the rebate if I bought a presale condo before March 2025?
The agreement must be dated after 19 March 2025. An earlier agreement does not qualify, even if you close later. An assignment purchase may qualify in some cases; read the CRA rules.
What if I move out after a year?
The home must be your primary place of residence and you must be the first to occupy it. Moving later does not necessarily cancel the rebate, but buying with the intention to rent does. Keep proof of occupancy.
Is the rebate taxable income?
No. It is a rebate of tax you paid, not income.
Sources
- Canada Revenue Agency — First-Time Home Buyers' GST Rebate, new housing rebate, forms
- Department of Finance Canada — legislation and backgrounders
- Ontario Ministry of Finance — Ontario new housing rebate and first-time buyer HST relief
- Revenu Québec — QST new housing rebate
- Tarion — Ontario new home warranties and builder licensing information (via HCRA)
