GST/HST on New Homes
When new homes are taxable, the rates by province, the rebates that apply and what HST included really means.
The short version
- New homes are taxable for GST/HST. Resale (used) homes are generally exempt.
- The rate depends on the province: 5% GST in Alberta, BC, Saskatchewan, Manitoba and the territories; 13% HST in Ontario; 14% in Nova Scotia; 15% in New Brunswick, Newfoundland and Labrador and PEI. Quebec has its own system, which we don't cover.
- A substantially renovated home (about 90% or more of the interior removed or replaced) is treated like a new home.
- Rebates can return part or all of the tax: the federal new housing rebate, the first-time home buyers' GST rebate (up to $50,000) and provincial rebates in HST provinces.
- Most builders price new homes "HST included, net of rebates", with the rebates assigned to the builder. Read that clause before you sign.
GST/HST on New Homes
Buying a resale home, you pay land transfer tax and legal fees. Buying a new one, there's a sales tax too, and on a house it's a big number: 13% of $800,000 is $104,000 before rebates. The good news is that most of it is usually rebated, and much of the rebate is already built into the price. The bad news is that most buyers never see how, until something goes wrong with it. Here's the national picture.
What's Taxable and What Isn't
| Purchase | GST/HST? |
|---|---|
| New house, condo or townhouse from a builder | Yes |
| Substantially renovated home sold by the renovator | Yes |
| Resale home from a previous owner who lived in it | Generally exempt |
| A home you build yourself | Tax on the materials and contractors you pay; see GST/HST when building a house |
| An assignment of a new home purchase agreement | The assignment fee is generally taxable |
| Vacant land from an individual | Often exempt; see vacant land tax issues |
The Rebates, Nationally
| Rebate | How much | Who |
|---|---|---|
| Federal new housing rebate | 36% of the GST (or federal part of HST), up to $6,300; full below $350,000, phased out by $450,000 | Buyers who will live there, or whose relation will |
| First-time home buyers' GST rebate | Up to 100% of the GST or federal part of HST, maximum $50,000; full up to $1 million, phased out by $1.5 million | First-time buyers, agreements from May 27, 2025 and before 2031 |
| Provincial new housing rebates | Vary: Ontario up to $24,000 on the provincial part, with enhanced rebates for some buyers; other HST provinces have their own programs | Depends on the province |
| New residential rental property rebate | Same formula as the federal rebate; 100% of the GST for qualifying purpose-built rentals | Landlords and investors; see rental property rebate |
The details, deadlines and forms are on the new housing rebate. Buying in Ontario? Our sister site OntarioHSTRebates.ca covers the Ontario rebates in depth, with a free check of what you qualify for.
Buying a new home? Check the HST in your price
Enter the price, the province and whether you're a first-time buyer. The assistant tells you which rebates apply, whether they're already in the price, and what to check in the agreement before you sign.
"HST Included": What It Really Means
New home prices are usually quoted with HST included and the rebates assigned to the builder. That means:
- The builder claims the rebate from CRA and has already deducted it from your price.
- If you turn out not to qualify (you don't move in, it's an investment, you're not a first-time buyer), the agreement usually makes you pay the builder the rebate amount on closing.
- Investors who rent the home claim the rental rebate themselves instead, after closing.
Check the HST schedule of the agreement, and the statement of adjustments at closing, for exactly how the tax and rebates were handled. A rebate you were entitled to and the builder didn't pass on is money worth chasing.
Get your GST/HST set up right the first time
The GST/HST SmartFile runs both $30,000 tests on your sales, compares the quick method with the regular method, and fills in form GST74 if the quick method wins.
Rebate Deadlines
A buyer claiming directly generally has two years after ownership is transferred. An owner-builder generally has two years after the home is substantially completed or first occupied, whichever is earlier. Late rebates are usually lost. More on timing: the new housing rebate.
Builders, Renovators and Flippers
If you build or substantially renovate a home and sell it, or rent it out, you may be a builder: you charge GST/HST on the sale, or self-assess it on the first rental. This catches people who never thought of themselves as builders. See substantial renovation rules and house flipping tax.
More on GST/HST generally is on the GST/HST guide, and on the income tax side of buying and selling on real estate tax in Canada. First-time buyers should also look at the FHSA.
GST/HST on New Homes Questions
Do you pay HST on a new home in Canada?
Yes. New and substantially renovated homes are subject to GST or HST at the province’s rate. Resale homes are generally exempt.
How much is the GST new housing rebate?
The federal rebate is 36% of the GST or federal part of the HST, up to $6,300, for homes under $350,000, and it phases out completely at $450,000.
What is the first-time home buyers’ GST rebate?
A rebate of up to 100% of the GST or federal part of the HST, to a maximum of $50,000, on new homes up to $1 million for first-time buyers, phasing out between $1 million and $1.5 million, for agreements made from May 27, 2025 and before 2031.
Is HST included in a new home price?
Usually. New home prices are typically quoted with HST included and the rebates assigned to the builder, who deducts them from the price.
Do investors get the new housing rebate?
Not the owner-occupied rebate. Investors who rent out the home may claim the new residential rental property rebate instead.
Sources: CRA, Guide RC4028, GST/HST New Housing Rebate; First-time home buyers' GST/HST rebate; New housing rebate. Checked October 2026. Provincial rebates outside Ontario are not detailed here, and we are not sure of their current amounts; check with the province.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.