HST & GST Housing Rebate
The recent housing boom has boosted the local economy, yet many home buyers are unaware of the HST and GST housing rebates available. The HST and GST housing rebate is designed to allow home buyers to claim a refund on the GST/HST paid when purchasing a home. This rebate is available to homeowners who have either purchased a newly built home from a builder or had a custom home constructed. The rebate applies to properties purchased as the homeowner’s principal place of residence.
The GST/HST new housing rebate enables individuals to recover a portion of the goods and services tax (GST) or the federal portion of the harmonized sales tax (HST) paid on a new or substantially renovated home intended as the individual’s—or their spouse’s—primary residence, provided all other eligibility conditions are met. To qualify for the federal rebate, the total purchase price of the home must be under $450,000; otherwise, the federal portion of the HST cannot be reclaimed.
Maximum Rebate
The maximum new housing rebate available is $24,000, which represents 6% of $400,000. Essentially, home buyers pay 2% of the provincial portion of HST on the first $400,000 of the purchase price, with any remaining amount taxed at 8%. The rebate is capped at the first $400,000. Unlike the federal rebate, homeowners can still claim the provincial rebate even if the property’s value exceeds $450,000.
Q. Do I Qualify for the Rebate?
The HST and GST housing rebates are available only to individuals who meet all eligibility criteria. The rebate is not available for properties co-owned with corporations or partnerships, as these entities are not eligible.
Q. GST/HST New Housing Rebate Eligibility?
You may be eligible for the GST/HST new housing rebate if you meet all of the following conditions:
•You purchased a new or substantially renovated home (including a condominium, a house with a major addition, or a converted non-residential property) from a builder and paid all GST/HST due.
•The purchase agreement includes both the house and the land it sits on under a single written contract with the builder.
•At the time of signing the agreement, the home is intended to be the primary residence for you or a close relation.
•The total purchase price of the home, including land and any taxable assignment of the original purchase agreement, is less than $450,000 before tax.
•Ownership of the home is transferred to you after construction or substantial renovation is complete.
•No one has occupied the home before possession is given to you following completion.
•Either you or a close relation are the first occupants of the home, or you made an exempt sale of the property before it was occupied.
Frequently Asked Questions
Who Qualifies for the HST New Housing Rebate?
Individuals who recently purchased a new or substantially renovated home may qualify for the HST new housing rebate if the property is intended as their—or their spouse/common-law partner’s—primary residence. To be eligible for the federal portion of the rebate, the total purchase price of the home must be less than $450,000.
What Is the GST/HST New Housing Rebate?
The GST/HST new housing rebate is a refund that allows eligible homeowners to recover a portion of the GST or federal HST paid when purchasing a new or substantially renovated home.
How Long Does It Take to Receive the HST Housing Rebate?
Processing times for new housing HST rebates typically range from a few weeks to several months. Some applicants may receive their rebate in as little as 4 weeks, while others may wait up to six months.
What Is the GST/HST Rebate?
The GST/HST rebate is a refund for qualified homebuyers, allowing them to recover part of the GST or HST paid on their new home. The rebate amount varies depending on the home’s value. For example, for homes with a market value of up to $350,000, the maximum rebate that can be claimed is $6,300.
What Is the Income Limit for GST Credits?
Income limits for GST credits vary depending on family status. For example, a single individual may receive a maximum credit of $451, while married couples can receive $592, plus an additional $155 per child.
Who Is Eligible for a GST Refund?
To be eligible for a GST refund, you must be a resident for tax purposes and meet the following criteria: Be at least 19 years old. Have a spouse or common-law partner, or be a parent who lives—or has lived—with your child.
Stay Informed & Get Expert Help
Access the latest corporate tax updates or connect with our accounting specialists.