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New-home HST rebate

New home HST rebate

Federal rebate phases out from $350k to $450k. Ontario provincial rebate is up to $24,000 with no phase-out. Combined max in Ontario is roughly $30,300.

Your scenario

Result

Total rebate
$24,000
Federal rebate
$0
Provincial rebate
$24,000

Rebate eligibility requires the home be your primary residence. Investor/rental new-build rebates use different forms.

The new home HST rebate, demystified

When you buy a brand-new home directly from a builder in Canada, GST (5%) or HST (13-15% depending on province) applies on top of the price. The federal and provincial governments offer rebates to soften the blow for primary-residence buyers — but the federal portion phases out quickly above $350,000.

Federal portion

The federal GST/HST New Housing Rebate equals 36% of the federal 5% GST on the first $350,000 of price, phasing out linearly to $0 at $450,000. Maximum federal rebate: $6,300 on homes at $350k.

  • $350,000 home: federal rebate = $6,300
  • $400,000 home: federal rebate = $3,150
  • $450,000+ home: federal rebate = $0

Provincial portion (Ontario)

Ontario adds its own rebate equal to 75% of the 8% provincial portion of HST, capped at $24,000. Unlike the federal rebate, Ontario's does NOT phase out at higher prices — meaning a $1M Ontario new build still gets $24,000 back.

Other HST provinces (NS, NB, PEI, NL)

Provincial rebate structures differ. Nova Scotia and PEI have rebates similar to Ontario's; New Brunswick and Newfoundland have their own formulas. Run your numbers with a local builder or real estate lawyer.

BC + other GST-only provinces

Alberta, BC, Saskatchewan, Manitoba, Quebec (GST + QST) — only the federal GST applies, so only the federal rebate is available.

Who qualifies

  • The home must be a NEW build directly from a builder (not resale)
  • Buyer must use it as primary residence within a reasonable time after closing
  • Assignment purchases qualify if the original buyer met the criteria
  • Investors / rental buyers do NOT qualify for this rebate — they use the New Residential Rental Property Rebate instead

How to claim

Builders typically claim the rebate on your behalf and the price you pay already nets it out (so a $450k advertised new build is effectively $450k − rebate = your real cost). For owner-built homes or assignment buyers, file Form GST190 with CRA within 2 years of closing.

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