Question 1

How much is the federal GST rebate on a new home in Canada?

Accepted Answer

Canadian buyers can claim two federal GST rebates on new homes. The standard new housing rebate returns 36% of the 5% federal GST paid, up to $6,300 on homes priced at or below $350,000 (phasing out between $350,000 and $450,000). First-time buyers who signed a purchase agreement on or after March 20, 2025 can also claim the new FTHB GST rebate, which returns up to 100% of GST — a maximum of $50,000 — on homes priced up to $1,000,000, phasing out between $1,000,000 and $1,500,000. This calculator covers the federal GST portion only. Provinces with HST may have additional provincial rebates.

Question 2

Do you pay GST on a new home in Canada?

Accepted Answer

Yes. When you purchase a newly constructed home anywhere in Canada, you pay 5% federal GST on the purchase price. In HST provinces, the federal portion is still 5%. This applies to new builds from a builder, custom-built homes, and substantially renovated properties. However, you may be eligible for a rebate of some or all of that federal GST through the standard new housing rebate or the first-time home buyers' GST rebate. Resale homes (previously occupied) are exempt from GST.

Question 3

Who qualifies for the $50,000 first-time home buyer GST rebate?

Accepted Answer

To qualify for the FTHB GST rebate (up to $50,000), you must: be 18 or older, be a Canadian citizen or permanent resident, and not have occupied a home that you or your spouse/common-law partner owned as a primary residence in the current year or the previous four calendar years. The home must be newly constructed or substantially renovated, intended as your primary residence, and priced at or below $1,500,000. Your purchase agreement must be signed on or after March 20, 2025 and before January 1, 2031, with construction substantially completed before 2036. Neither you nor your spouse can have previously received this rebate. In a joint purchase, only one buyer needs to meet the first-time buyer criteria.

Question 4

Can you claim both the standard GST rebate and the first-time buyer rebate?

Accepted Answer

Yes. The FTHB GST rebate is a top-up that stacks on top of the standard new housing rebate. If you qualify for both, you claim both. For example, on a $400,000 new home, you would receive the standard rebate (approximately $2,520) plus the FTHB rebate to bring total recovery to 100% of federal GST — $20,000 total savings.

Question 5

Is there a federal GST rebate on rental property in Canada?

Accepted Answer

Yes. There are two tiers. For purpose-built rental buildings with 4 or more self-contained apartments (or 10+ rooms) where at least 90% of units are designated for long-term rental and construction began after September 14, 2023, the enhanced NRRP rebate returns 100% of the federal GST. For single rental units (condos, houses, duplexes, triplexes), the standard NRRP rebate applies — 36% of GST up to $6,300, phasing out between $350,000 and $450,000. In both cases, the first occupant must be a tenant with a lease of at least 12 months, and the investor must be GST-registered. Claim using CRA Form GST524.

Question 6

Do I pay GST on a resale home in Canada?

Accepted Answer

No. GST does not apply to resale homes (previously occupied residential properties) anywhere in Canada. GST only applies to newly constructed homes, substantially renovated homes, and converted non-residential properties. If you are buying a resale home, you will not pay GST and these rebates do not apply to your purchase.

Question 7

What counts as a substantial renovation for the GST rebate?

Accepted Answer

A substantial renovation means at least 90% of the interior of the existing housing has been removed or replaced. The 90% test applies only to habitable areas — living spaces, finished basements, and finished attics. It does not include garages, crawl spaces, or utility areas. The foundation, exterior walls, and roof do not need to be replaced. If your renovation qualifies, it is treated the same as new construction for rebate purposes, and you can claim using CRA Form GST191.

Question 8

How do I apply for the federal GST new housing rebate?

Accepted Answer

There are two ways to apply. If you bought from a builder: most builders apply the rebate at closing and deduct it from your purchase price — they then claim the rebate from CRA on your behalf using Form GST190. If you built your own home or hired a custom builder: you apply directly to CRA using Form GST191 after the home is substantially complete and occupied. In both cases, the application must be filed within two years of the home being occupied or substantially completed.

Question 9

Which CRA form do I use for the GST new housing rebate?

Accepted Answer

The form depends on how you acquired the property. For a home purchased from a builder as your primary residence, use Form GST190 along with the RC7190-WS calculation worksheet. For an owner-built home or substantial renovation, use Form GST191 along with the GST191-WS construction summary worksheet. For rental investment properties (both standard NRRP and enhanced purpose-built), use Form GST524. If you qualify for the first-time home buyer rebate, the FTHB section is included on Forms GST190 and GST191 — no separate form is needed. All forms are available as fillable PDFs on the CRA website.

Rebate	Max Savings	Price Limit
FTHB Rebate (new)	$50,000	$1.5M
Standard Rebate	$6,300	$450K
Rental NRRP (4+ units)	100% of GST	No cap
Rental NRRP (1-3 units)	$6,300	$450K

Scenario	Form(s)
Bought from a builder (personal)	GST190 + RC7190-WS
Owner-built or substantial reno (personal)	GST191 + GST191-WS
Rental property (any type)	GST524

GST Rebate on New Homes Calculator

Three Federal GST Rebates for New Homes in Canada

Who Qualifies for the $50,000 FTHB Rebate?

Standard New Housing Rebate

Rental Property Rebate (NRRP)

What Counts as a Substantial Renovation?

How the Rebate Is Applied

Which CRA Form Do I Need?

Resale Homes

Need Help Filing Your GST Rebate?