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HST & GST Housing Rebate

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HST & GST Housing Rebate

While the HST housing rebate in Ontario and the GST housing rebate in Ontario relating to the purchase of a new property can get tricky, there is sufficient relief out there for both individuals seeking a new home and/or investors looking for a quick gain. However, without proper planning, one can also get stuck with having to pay HST twice and not get any form of relief to shelter the additional taxes levied.

In order to make sure you do things correctly the first time, please feel free to contact us directly. Learn about tax credit Toronto and disability tax credit Toronto.

HST & GST Housing Rebate in Ontario

The Greater Toronto Area's housing boom has been great for the local economy but many home buyers are unaware of the available HST housing rebate in Ontario and GST housing rebate in Ontario. The rebate is provided to home buyers to apply for a refund on GST/HST paid on their homes. It is available to home owners who have purchased a home from the builder or custom-built their own homes, and who buy the property as their principal place of residence.

The GST/HST new housing rebate allows an individual to recover some of the goods and services tax (GST) or the federal part of the harmonized sales tax (HST) paid for a new or substantially renovated house that is for use as the individual's, or their spouse's primary place of residence, and all of the other conditions are met. In order to qualify for the Federal rebate, the total purchase price of the home must be less than $450,000 otherwise one cannot qualify to recover the federal portion of the HST paid.

Maximum Rebate

If your house is located in Ontario, you may also be eligible to claim a provincial new housing rebate to recover some of the provincial part of the HST that you paid to buy the house. To qualify for this rebate, you must be someone who bought a new or substantially renovated house (including a new condominium unit) from a builder, and you meet the following conditions:

  • The house is located in Ontario and is for use as yours, or your spouse/common-law partner's primary place of residence
  • You are eligible to claim a GST/HST new housing rebate for the house, or you would be eligible if the purchase price was less than the $450,000 maximum threshold for claiming that rebate — this means that a provincial new housing rebate may be available even if a GST/HST new housing rebate for some of the federal part of the HST is not available

Maximum Rebate: The maximum Ontario new housing rebate amount available is $24,000, which is equal to 6% of $400,000. In essence, home buyers are paying 2% of the provincial tax in Ontario on the first $400,000 of the purchase price and 8% thereafter. The rebate amount has been capped to apply to the first $400,000. Unlike the Federal rebate, one can still apply for the Provincial rebate on homes valued above $450,000.

GST/HST New Housing Rebate Eligibility

The HST housing rebate in Ontario and the GST housing rebate in Ontario is only available to individuals who meet all of the conditions for claiming the rebate. It is not available to individuals who co-own the housing with corporations or other partnerships because the rebate is not made available to those entities.

As an individual, you are eligible to claim the GST/HST new housing rebate if you meet all of the following conditions:

  • You bought a new or substantially renovated house from a builder, and you paid all of the GST/HST due on your purchase
  • The builder sells you the house and the related land under the same written agreement
  • When you sign the purchase and sale agreement, the house is intended to be the primary place of residence for you or your relation
  • The purchase price for the house (including land), plus the purchase price for a taxable assignment (if applicable), before tax, is less than $450,000
  • Ownership of the house is transferred to you after the construction or renovation is substantially completed
  • No one occupied the house before possession is given to you and after the construction or renovation is substantially completed
  • You, or a relation of yours, are the first occupant of the house; or you made an exempt sale of the house before it is occupied by anyone
GST/HST New Housing Rebate Eligibility

Housing Rebate Benefits

  • Recover GST/HST paid on new or renovated homes
  • Provincial rebate up to $24,000 in Ontario
  • Available for principal residences and first-time occupants
  • Provincial rebate available even on homes above $450,000

HST/GST Housing Rebate

Watch this short video to learn more about the HST and GST housing rebate in Ontario:

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As Co-Founder of SRJ Chartered Professional Accountants, Shayan has spent over a decade helping business owners across more than a dozen industries navigate complex tax and accounting challenges. From healthcare practitioners and legal professionals to tech startups and eCommerce brands, his strategic approach focuses on reducing tax burdens and building sustainable financial systems that scale with each client's growth.

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Junaid brings deep expertise in corporate tax planning and advisory services to clients across every industry SRJ serves. With a focus on professional corporations, holding company structures, and multi-jurisdictional tax strategy, he helps business owners make informed decisions at every stage, whether they're incorporating their first practice, expanding a tech company, or preparing for a business sale. His attention to detail and proactive approach have made him a trusted partner for self-employed professionals across Toronto.

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FAQ

Frequently Asked Questions

Individuals who recently purchased a new or renovated house and meet the following criteria: the purchased home is located in Ontario as is for the use of themselves or their spouse/common law partner. In addition, the purchase price must be less than $450,000 in order to qualify for the federal rebate.

The housing rebate is a refund that allows homeowners to recover some of the amount spent to purchase a house.

New housing HST rebates generally take several months to be received by CRA, although they can be accepted as fast as 4 weeks or take as long as half a year.

GST/HST rebate is a refund for qualified homebuyers to receive a refund on a portion of the amount spent to purchase their new home. The exact amount varies, although for homes with a free market value up to $350,000 the maximum rebate that can be claimed is $6,300.

The income limit varies based on a person’s family status. For example, single individuals will be able to receive a credit of up to $451, married couples $592 plus $155 per child.

In order to be eligible, you must be a canadian resident for tax purposes and meet the following criteria: you are at least 19 years of age, you had a spouse/common law partner and you are or were a parent and lived with your child.