GST/HST on Home Renovations
What contractors charge, why cash-no-HST costs more, and the few cases where renovation tax comes back.
The short version
- Renovation work on your home is taxable: a registered contractor charges GST or HST on labour and materials, and a homeowner can't get that tax back as an input tax credit.
- A contractor who isn't registered (a small supplier under $30,000 a year) legitimately charges no GST/HST. A contractor who is registered and offers a "cash price, no HST" is asking you to help them skip remitting it.
- There's no general rebate of GST/HST on renovations. The exception is a substantial renovation (about 90% of the interior), which is treated like a new home and can qualify for the new housing rebates.
- Some renovations earn income tax credits instead: the home accessibility tax credit and the multigenerational home renovation tax credit.
- For a rental property, the GST/HST on renovations is part of the cost (deducted as a repair or added to capital), not refunded.
GST/HST on Home Renovations
Every renovation quote has the same last line: plus HST. On a $60,000 kitchen in Ontario, that line is $7,800, and the first question homeowners ask is whether any of it comes back. Usually, no. But there are a few situations where it does, and a few where the tax isn't owed at all. Here's how to tell which one you're in, and how to spot the contractor who's about to make it your problem.
What the Contractor Charges
| Contractor | Charges GST/HST? |
|---|---|
| Registered for GST/HST (any business over $30,000 a year in sales, and many below) | Yes, on labour and materials, at your province's rate |
| Small supplier, not registered | No, and that's legal |
| Registered, but offers a cash price with no tax | Should charge it; the "discount" usually means the work and the tax go unreported |
You can check whether a business is registered with CRA's online GST/HST registry, using the number on the quote. A registered contractor must show the tax, or show that the price includes it, and give their GST/HST number on invoices over $100. See how to charge GST/HST for what an invoice must contain.
Why "Cash, No HST" Costs More Than It Saves
- No paper trail means little recourse if the work is bad, the contractor disappears, or a warranty claim comes up.
- No invoices means no proof of costs for your principal residence records, a rental's cost base, or any renovation tax credit.
- Insurance claims for damage caused by the work get harder without a contract and an invoice.
- The contractor's tax problem doesn't become yours legally, but CRA does trace renovation payments in audits, and you may be asked to confirm what you paid.
More on the income tax side of cash work is on cash income and taxes.
Is the HST on my renovation recoverable?
Describe the work, the property and who will live in it. The assistant tells you whether any rebate or credit applies, what the contractor should charge, and what paperwork to keep.
When Some Tax Does Come Back
| Situation | What you can get |
|---|---|
| Substantial renovation (about 90% of the interior replaced) or an addition that doubles the living space, and you live in it | The owner-built new housing rebates on the GST/HST paid; see owner-built home rebate and substantial renovation rules |
| Renovations for accessibility, for someone 65 or older or eligible for the disability tax credit | Home accessibility tax credit: 14% (for 2026) of up to $20,000 of costs per home per year; see home accessibility tax credit |
| Creating a secondary unit for a senior or an adult with a disability to live with family | Multigenerational home renovation tax credit: 14% (for 2026) of up to $50,000 of costs (up to $7,000), refundable; see the MHRTC |
| Medical renovations (for example, a ramp or a lift) for someone with a mobility impairment | May qualify as medical expenses |
| A business or rental, and you're a GST/HST registrant | Input tax credits, if the property is used in a commercial activity (long-term residential rentals are exempt, so usually not) |
The income tax credits include the GST/HST you paid as part of the eligible cost, which is a small way of getting some of it back.
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.
Renovating a Rental Property
Long-term residential rent is exempt from GST/HST, so landlords can't claim input tax credits on renovations. The tax becomes part of the expense: deducted in the year for a repair, or added to the building's cost for an improvement. See repairs vs improvements. A gut renovation of a rental can trigger the self-supply rule; see the rental property rebate.
Renovating to Sell
If you renovate a home to sell it, and the work is a substantial renovation, the sale becomes taxable. If it isn't, the sale stays exempt, but the profit may be business income. See house flipping tax.
Records to Keep
- The signed contract and every invoice, with the contractor's GST/HST number.
- Proof of payment.
- Before-and-after photos, especially for a large renovation.
- Permits.
Ontario homeowners doing a gut renovation can check the provincial rebate on OntarioHSTRebates.ca. The national picture is on GST/HST on new homes.
Home Renovation GST/HST Questions
Do I pay HST on home renovations in Canada?
Yes, if your contractor is registered for GST/HST. Renovation labour and materials are taxable, and homeowners cannot claim the tax back as an input tax credit.
Can I get a rebate of the HST on my renovation?
Generally not, unless it is a substantial renovation of about 90% of the interior (or an addition that at least doubles the living space) and you live in the home, in which case the new housing rebates may apply.
Is it legal for a contractor not to charge HST?
Yes, if the contractor is a small supplier who is not registered. A registered contractor must charge GST/HST on taxable work.
Are there tax credits for home renovations?
The home accessibility tax credit and the multigenerational home renovation tax credit apply to qualifying renovations, and some medical renovations qualify as medical expenses.
Can a landlord claim HST on rental renovations?
Usually not as an input tax credit, because long-term residential rent is exempt. The tax is part of the renovation cost for income tax purposes.
Sources: CRA, GST/HST and home construction; Multigenerational home renovation tax credit; Guide RC4028. Checked October 2026. Renovation credit conditions are summarized; each has eligibility rules not listed here.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.