The new housing rebate assists individuals in recovering a portion of the GST/HST they paid when buying/building a new house or heavily renovating an existing one.
Individuals can apply for this rebate if they meet the program’s requirements. However, it does not apply to corporations, partnerships, or individuals who co-own the property with either of them.
This article provides an overview of the GST/HST new housing rebate in Canada, including its eligibility requirements, rebate amounts, and claiming process.
- The new housing rebate allows you to receive 36% of your house’s GST for up to $6,300.
- Builders can apply for the new housing rebate on behalf of the new homeowners.
- Some provinces, like Ontario and Nova Scotia, also offer HST rebates on the provincial portion of the tax.
What is the GST/HST New Housing Rebate?
The GST/HST new housing rebate is a government program that assists buyers of new houses in reclaiming a portion of the GST/HST tax they paid for their properties. This rebate also applies to heavily renovated houses that replaced at least 90% of their interior.
As sales tax policies vary across provinces, their new housing rebate calculations also differ.
Read the section below to learn about the new housing rebate offered in your province.
You can expect a GST rebate on new homes in Alberta. This province only charges GST on products and services, so you’ll receive 36% of the tax you paid for your house.
In British Columbia, you may be eligible to receive a rebate of up to 36% of the GST you paid for your newly built or renovated house.
The new housing rebate in Manitoba equals 36% of the GST portion of the tax you paid for your eligible new house.
New Brunswick charges a 15% HST on its goods and services. However, its new housing rebate only applies to the 5% GST portion of the HST tax. 36% of the GST you paid for your house can be rebated.
This province charges a 15% HST tax; however, only its 5% GST portion can be rebated. You may receive an equivalent rebate of 36% of the total amount that went to your new house’s GST taxes.
In this province, goods and services are only charged a 5% GST tax. You may qualify to receive a 36% rebate of the GST tax you paid when building or buying your new house.
In Nova Scotia’s 15% HST tax, the 5% portion is allocated to GST. You may receive a 36% rebate of the total GST tax you paid for your house. The provincial part of the HST may also be rebated.
You may receive a 36% rebate of the 5% GST portion of the tax you paid for your new housing in Nunavut.
Ontario’s HST tax rate is 13%. However, the HST rebate on new homes in this province only applies to the 5% GST tax portion. You can receive a 36% GST tax rebate on new homes in this province. Additionally, a rebate on the provincial portion of the HST may also be available.
Prince Edward Island’s HST tax rate is 15%, and 5% represents the GST portion. 36% of the GST tax you paid for a new house can be rebated.
Newly purchased houses in Quebec are charged a 5% GST tax, and 36% of the total tax you paid can be rebated.
Saskatchewan charges a 5% GST tax on its goods and services. The new housing rebate you can receive in this province is 36% of the total GST you spend for the house.
Yukon only charges a 5% GST tax rate. Hence, you can rebate 36% of the tax you paid to purchase your new house.
Who is Eligible for the New Housing Rebate?
To be eligible for the new housing rebate, the following criteria must be met:
- The house you’re applying a rebate for is your or your relative’s primary residence.
- You own the house individually, not through a corporation or partnership.
- You do not co-own the house with a corporation or partnership.
- The house’s fair market value, including its land, doesn’t exceed $450,000.
Moreover, for a house to be considered “new housing,” it must fit into one of these descriptions:
- Bought from a builder registered in the new housing rebate program.
- An owner-built house that’s never been occupied before.
- A substantially renovated house, altering over 90% of its interior.
- Unit owned through buying shares in a cooperative housing corporation.
Note: If you live in Toronto, you can still apply for the new housing rebate of the provincial part of the HST if your house costs over $450,000.
You can get 36% of the GST portion of the tax you paid for your new housing.
The maximum GST/HST new housing rebate you can receive is $6,300. However, some provinces may offer more by giving you rebates for the provincial portion of the HST. For example, the Ontario new housing rebate can reach $24,000.
To claim the GST/HST new housing rebate, you must complete two forms: the GST191-WS and the GST191. These forms require you to provide information about you and your house, and both of them can be found on this official government website.
You must submit these forms within two years of your house’s base date, which is the earlier date of either when your house was substantially constructed/renovated or transferred to your ownership.
When buying a house from a builder, they may also apply for the new housing rebate in your stead. The builder will complete the necessary application forms and send you the rebate money once it’s received from the government.
All new housing rebate claims are subject to audit. Hence, receiving your HST housing rebate can take up to 6 months.
Yes. You can claim GST back on properties like new houses or residential rental units. For new homes in Canada, the maximum rebate you can receive from the government is $6,300.