New Residential Rental Property Rebate
The new residential rental property rebate, the 100% purpose-built rental rebate and the self-supply rule.
The short version
- If you buy a new (or substantially renovated) home and rent it out long-term, you can't claim the owner-occupied new housing rebate, but you may claim the new residential rental property (NRRP) rebate instead.
- The standard NRRP rebate mirrors the federal new housing rebate: 36% of the GST or federal part of HST, up to $6,300 per unit, phased out between $350,000 and $450,000 of value.
- The tenant (or a series of tenants) must use it as their primary residence, generally under a lease of at least one year.
- New purpose-built rental buildings (at least 4 private units or 10 units, 90% held for long-term rental, construction started after September 13, 2023 and before 2031) can get 100% of the GST back.
- Apply on form GST524 (GST525 for multi-unit buildings), generally within two years of the end of the month you paid the tax or first rented the unit. HST provinces have provincial rental rebates too; Ontario's is covered on OntarioHSTRebates.ca.
New Residential Rental Property Rebate
A new condo bought to rent out is one of the most common ways investors meet GST/HST. The builder's price usually assumes you'll live there and assigns the owner-occupied rebates to them. You won't, so on closing the builder adds those rebates back to your price, and you then claim the rental rebate yourself. Miss that second step and you've paid tax you didn't have to. Here's how it works.
Standard NRRP Rebate
| Requirement | Detail |
|---|---|
| Property | New or substantially renovated residential unit, bought from a builder or built yourself, or land leased for a mobile home |
| Use | Rented to a tenant who uses it as their primary residence, generally under a lease of at least one year (or a series of shorter leases adding up to a year) |
| Amount | 36% of the GST or federal HST, up to $6,300 per unit |
| Value limit | Full under $350,000 of fair market value per unit; nothing at $450,000 or more |
| Form | GST524 (single unit); GST525 supplement for multiple units |
| Deadline | Generally two years after the end of the month the tax was paid (or the first rent month for a self-built rental) |
Short-term rentals (Airbnb-style stays under a month) don't qualify. If the unit is your own home later, it's a different rebate and a different calculation.
Bought a new condo to rent out?
Enter the price, closing date, province and lease details. The SmartFile works out the federal and provincial rental rebates, checks the deadline, and fills in form GST524 for you to check.
Purpose-Built Rental Housing: 100% of the GST
For new rental buildings, the federal government enhanced the rebate to 100% of the GST (or the federal part of HST), with no price cap, if:
- The building has at least 4 private apartment units (each with its own kitchen, bathroom and living area), or at least 10 private rooms or units;
- At least 90% of the units are held for long-term residential rental;
- Construction began after September 13, 2023 and before 2031, and is substantially complete before 2036.
Condominium units, duplexes and single-family homes rented out don't qualify for the enhanced rebate; they use the standard one. Building a 4-plex? Also look at the 10% capital cost allowance rate for new purpose-built rentals on CCA on rental property.
Self-Builders and Renovators: The Self-Supply Rule
If you build or substantially renovate a residential property and then rent it out, you're generally treated as a builder: when the first tenant moves in, you must self-assess GST/HST on the fair market value (land and building), as if you sold it to yourself. You then claim the rental rebate against that tax. This catches people who build a laneway house, a garden suite or a duplex to rent. The rules are on substantial renovation rules, and the owner-built rules for homes you live in are on owner-built home rebate.
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.
Provincial Rental Rebates
HST provinces have their own rental rebates on the provincial part. Ontario's, including the enhanced rebate for purpose-built rentals and the rules on leases and timing, are covered in depth on our sister site, OntarioHSTRebates.ca. For other provinces, check the provincial program.
Common Mistakes
- Not claiming at all, because the builder "handled the HST". They handled the owner-occupied rebate, then charged it back to you.
- A lease shorter than a year, with no plan to show a year of continuous occupancy.
- Renting short-term instead of long-term.
- Missing the two-year deadline.
- Assuming the enhanced 100% rebate applies to a single condo unit.
Income tax on the rent is a separate question; see rental income tax and rental property tax. The national overview is on GST/HST on new homes.
Rental Property Rebate Questions
Can I get a GST/HST rebate on a new condo I rent out?
Yes, through the new residential rental property rebate, if the unit is rented to a tenant as their primary residence, generally under a lease of at least one year, and the value limits are met.
How much is the new residential rental property rebate?
The standard rebate is 36% of the GST or federal part of the HST, up to $6,300 per unit, phased out between $350,000 and $450,000 of fair market value.
What is the purpose-built rental housing rebate?
An enhanced rebate of 100% of the GST or federal part of the HST for new rental buildings with at least 4 private units or 10 units, at least 90% for long-term rental, with construction starting after September 13, 2023 and before 2031.
What form do I use for the rental property rebate?
Form GST524, with form GST525 for multiple units.
Do short-term rentals qualify for the rental rebate?
No. The rebate is for long-term residential rentals where the tenant uses the unit as a primary residence.
Sources: CRA, GST/HST new residential rental property rebate; GST/HST Info Sheet 19-3-9, Purpose-built rental housing rebate. Checked October 2026. The deadline is summarized; specific start dates depend on how the tax was paid. Provincial rental rebates outside Ontario are not detailed.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.