GST/HST new housing rebate

Are you eligible for the rebate?

You may be eligible for a new housing rebate for some of the GST/HST paid if you are an individual who:

  • purchased new housing or constructed or substantially renovated housing, which could include housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land), for use as your (or your relation’s) primary place of residence
  • purchased shares in a co-operative housing (co-op) complex for the purpose of using a unit in the co-op for use as your (or your relation’s) primary place of residence
  • constructed or substantially renovated your own home, or hired someone else to construct or substantially renovate your home for use as your (or your relation’s) primary place of residence and the fair market value of the house when the construction is substantially completed is less than $450,000

Qualifying housing also includes mobile homes (including modular homes) and floating homes. For mobile and floating homes, you may have the option to treat your mobile or floating home as a purchased home or as an owner-built home when claiming your new housing rebate.

For more information, see Guide RC4028, GST/HST New Housing Rebate.

Which new housing rebate can you claim?

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 relation's, primary place of residence, when all of the other conditions are met. Additionally, other provincial new housing rebates may be available for the provincial part of the HST whether the GST/HST new housing rebate for the federal part of the HST is available or not.

In certain circumstances, a transitional new housing rebate may be available in addition to any GST/HST new housing rebate and provincial new housing rebate for which you may be eligible, even if the house is not your primary place of residence.

The new housing rebate is not available to a corporation or a partnership.

Owner-built houses

You may be entitled to claim a GST/HST new housing rebate for an owner-built house if you:

  • built, or engaged someone else to build, a house on land that you already owned or leased
  • substantially renovated, or engaged someone else to substantially renovate, your existing house (at least 90% of the interior of the existing house must be removed or replaced to be a substantial renovation)
  • renovated, or engaged someone else to renovate, your existing house and built, or engaged someone else to build, a major addition to your house that at least doubles the size of the living area of the house (for example, the addition of a full second story to an existing bungalow. Adding a sun porch, sun room, family room, or bedroom by itself is not a major addition)
  • converted a non-residential property into your house
  • purchased a new or substantially renovated mobile home or a new floating home from a builder of the home (this includes the manufacturer or vendor of the home) or you or someone you hired substantially renovated such a home. For a mobile or a floating home, you have the option of claiming either the owner-built new housing rebate or the new housing rebate for a house purchased from a builder

The following chart provides the different forms available to apply for an owner-built housing rebate.

Different rebates available for owner-built houses
You may be eligible for the following rebates To recover the following tax
  1. GST191-WS (Construction Summary Worksheet) AND
    GST191 (GST/HST New Housing Rebate Application for Owner-Built Houses)
  2. RC7191-ON (Ontario Rebate Schedule)
  3. RC7191-BC (British Columbia Rebate Schedule)
  1. GST or federal part of the HST
  2. If your house is located in Ontario, the provincial part of the HST
  3. If your house is located in British Columbia, the provincial part of the HST

Houses purchased from a builder

You may be entitled to claim a GST/HST new housing rebate for a house purchased from a builder if you:

  • purchased a new or substantially renovated house (building and land) from a builder
  • purchased a new or substantially renovated mobile home or a new floating home from a builder (this includes the manufacturer or vendor)
  • purchased a share of the capital stock of a co-operative housing corporation (co-op)
  • purchased a new or substantially renovated house from a builder where you leased the land from that builder under the same agreement to buy the house and the lease is for 20 years or more or gives you the option to buy the land

The following chart provides the different forms available to apply for a rebate for houses purchased from a builder.

Different rebates available for houses purchased from a builder
You may be eligible for the following rebates To recover the following tax
  1. RC7190-WS (Calculation Worksheet) AND
    GST190 (GST/HST New Housing Rebate Application for Houses Purchased from a Builder)
  2. RC7190-ON (Ontario Rebate Schedule)
  3. RC7190-NS (Nova Scotia Rebate Schedule)
  4. RC7190-BC (British Columbia Rebate Schedule)
  1. GST or federal part of the HST
  2. If your house is located in Ontario, the provincial part of the HST
  3. If your house is located in Nova Scotia, the provincial part of the HST
  4. If your house is located in British Columbia, the provincial part of the HST

Provincial transitional new housing rebates

In certain circumstances, a transitional new housing rebate may be available in addition to any GST/HST new housing rebate and provincial new housing rebate for which you may be eligible, even if the house is not your primary place of residence.

The following chart provides the different forms available to apply for a provincial transitional new housing rebate.

Different rebates available for provincial transitional new housing
You may be eligible for the following rebates To recover the following tax
  1. RC7000-PE (Prince Edward Island Provincial Sales Tax Transitional New Housing Rebate)
  2. RC7001-PE (Prince Edward Island Provincial Sales Tax Transitional New Housing Rebate - Residential Condominiums)
  3. RC7002-PE (Prince Edward Island Provincial Sales Tax Transitional New Housing Rebate - Apartment Buildings)
  4. RC7003-PE (Prince Edward Island Provincial Sales Tax Transitional New Housing Rebate for Non-registrant First Resellers)
  5. RC7003-ON (Ontario Retail Sales Tax (RST) Transitional New Housing Rebate for Non-registrant First Resellers)

To remove the estimated provincial sales tax (PST) or the retail sales tax (RST) that is embedded in the cost of the housing.

For more information, see:

British Columbia transition tax rebate 

You may be eligible for the British Columbia transition tax rebate if you are the builder of newly constructed or substantially renovated housing in British Columbia and:

  • you had to charge the purchaser the 2% British Columbia transition tax
  • you had to account for the 2% British Columbia transition tax on a self-supply of the housing
  • the purchase price is considered to include the 2% British Columbia transition tax

To apply for this rebate, use Form RC7004-BC, British Columbia Transition Tax Rebate.

For more information, see GST/HST Notice 276, Elimination of the HST in British Columbia in 2013 - Transitional Rules for Real Property Including New Housing.

2006 and 2008 GST/HST transitional rebates

If you signed a purchase and sale agreement to buy a new or substantially renovated house in Canada before October 31, 2007, you may be eligible to claim a GST/HST transitional rebate as a result of the reductions in the rate of GST/HST, even if the house is not your primary place of residence. However, builders cannot pay or credit the transitional rebate to the purchaser of new housing.

To apply for this rebate, use Form GST193, GST/HST Transitional Rebate Application for Purchasers of New Housing.

What records do you include with your application and what records do you keep?

Documents you have to send us

In most cases, there is no requirement to submit supporting documentation with your application. However, you do have to send invoices with your worksheet where the vendor did not charge the GST/HST on the invoice (photocopies of these invoices will be accepted). You also may be contacted and requested to submit proof of occupancy.

Documents you have to keep

Keep a copy of the completed forms. You also have to keep all your original invoices and the other documents you used to complete the forms for six years in case we ask to see them.

Only original invoices in the name of the claimant or the co-owners are acceptable. We do not accept photocopies, credit card or interac slips, or account statements, without the original invoices. We do not accept estimates or quotes as proof. If we ask you to send your invoices to us, we will return them.

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