Buying a new home? You may qualify for a federal rebate of up to $6,300 — here's how to claim it.
Maximum Federal Rebate
On homes purchased under $450,000
When you buy or build a new home in Canada, you pay GST (5%) or HST (13%–15% depending on province) on the purchase price. The federal government offers a rebate — officially called the GST/HST New Housing Rebate — to recover a portion of the tax paid on eligible new homes.
The rebate was designed to make new homes more affordable by returning some of the sales tax paid by buyers.
| Purchase Price | Federal GST Rebate |
|---|---|
| Under $350,000 | 36% of the GST paid, max $6,300 |
| $350,000 – $450,000 | Phased out proportionally |
| Over $450,000 | $0 (no federal rebate) |
Example: You buy a new condo for $325,000. GST paid = $325,000 × 5% = $16,250. Federal rebate = $16,250 × 36% = $5,850 (under the $6,300 cap).
In addition to the federal rebate, most provinces offer their own new housing rebate on the provincial portion of HST:
| Province | HST Rate | Provincial Rebate | Max Provincial Rebate |
|---|---|---|---|
| Ontario | 13% (5% GST + 8% PST) | 75% of provincial portion | $24,000 |
| Nova Scotia | 15% (5% + 10%) | 18.75% of HST | $3,000 |
| New Brunswick | 15% (5% + 10%) | None (federal only) | $0 |
| PEI | 15% (5% + 10%) | None (federal only) | $0 |
| Newfoundland | 15% (5% + 10%) | None (federal only) | $0 |
| BC/Alberta/SK/MB/QC | 5% GST only | Federal rebate only | $6,300 |
You may qualify if:
Most buyers claim the rebate as a credit at closing — the builder applies the rebate on your behalf and includes it in the purchase price (netting it out from what you owe). If you built your own home, you must file directly with the CRA using Form GST190 within 2 years of the home being substantially completed.