📅 April 2026⏱ 12 min read🍁 Real Estate

GST/HST Housing Rebates: How to Get Your Money Back

If you are buying a new-build home or doing a major renovation in 2026, you could be eligible for a rebate worth tens of thousands of dollars. Here is how the math works.

The Sticker Shock of New Builds

In Canada, when you buy a resale home, you generally do not pay GST or HST. However, brand-new homes are treated as a supply of a new product and are subject to sales tax. In Ontario, this means a 13% tax; in BC and Alberta, it is 5%. On a $700,000 home, that is an extra $91,000 in Ontario—a massive sum that can break a budget.

To keep housing affordable, the government offers "Housing Rebates" to offset a portion of this tax for those using the home as their primary residence.

1. The Federal GST New Housing Rebate

The federal portion of the rebate applies to the 5% GST paid on the home.

  • The Calculation: You can claim a rebate of **36% of the GST paid**, up to a maximum of **$6,300**.
  • The "Cliff": This rebate is only available in full for homes with a fair market value of **$350,000 or less**.
  • Phase-out: Between $350,000 and $450,000, the rebate amount gradually reduces to zero.
  • The Reality in 2026: Because average home prices in most Canadian cities now far exceed $450,000, many buyers no longer qualify for the federal portion of the rebate.

2. The Ontario HST New Housing Rebate (NRRP)

While the federal rebate has a strict price cap, Ontario’s provincial rebate is much more generous for high-value markets.

  • The Calculation: You can claim **75% of the provincial portion** (8%) of the HST paid.
  • The Maximum: The maximum rebate is **$24,000**.
  • No Price Cap: Unlike the federal rebate, you can qualify for the full $24,000 Ontario rebate regardless of the purchase price, as long as the home is your primary residence.
Investor Alert: If you are buying a new build as a rental property, you do not qualify for the "New Housing Rebate." Instead, you must pay the full HST upfront and then apply for the New Residential Rental Property (NRRP) Rebate after you have a signed one-year lease.

3. Eligibility: The Primary Residence Rule

To qualify for these rebates in 2026, the home must be your (or a close relation's) **primary place of residence**. The CRA looks for proof of occupancy, such as changed mailing addresses, utility bills, and the intent to live there long-term. If you flip the house shortly after closing, the CRA can (and often does) demand the rebate back with interest.

4. How the Rebate is Handled on Closing Day

Most builders include the "rebate net of tax" in their advertised price. This means the builder pays the tax, claims your rebate on your behalf, and lowers the purchase price accordingly.

However, if you are an investor, the builder will usually charge you the **full HST** on closing because they cannot claim the owner-occupant rebate for you. You must then find the extra $24,000+ in cash for closing and wait for the CRA to mail you a check 2–3 months later.

Check Your Contract: Read the "HST Clause" in your Agreement of Purchase and Sale. Ensure it explicitly states that the price includes HST net of rebates, so you aren't surprised by a massive tax bill on closing day.

Calculate Your Sales Tax

Use our GST/HST calculator to see exactly how much tax applies to your new home or renovation project.

GST/HST Calculator
Disclaimer: This guide provides general information for the 2026 tax year. HST/GST rules for "substantial renovations" and "owner-built" homes are highly technical. Consult a tax professional or real estate lawyer before signing a purchase agreement.