GST/HST New Housing Rebate Canada 2022

Getting a GST/HST new housing rebate is definitely something you could look into if you are thinking of getting a new home in Canada.

Getting a home (most especially a home that is newly built) can be a financially draining project to undertake. Construction, property, and land taxes are not the only expenses you will encounter. You will also pay your GST/HST.

The GST/HST is the taxes made on top of the purchase price when you buy a newly built house. It is not the same as land, property, and construction taxes. Factors that determine whether you will pay your GST/HST are your province and your final tax rate.

Fortunately, you can get a GST/HST new housing rebate in Canada. To know more about this rebate and how to go about getting yours, stick with us.

What is The GST/HST New Housing Rebate and How Does It Work?

The GST/HST new housing rebate allows a home buyer to take back some of the federal sales taxes paid in the course of buying a new or heavily renovated house that is for use as the primary place of residence when all of the other conditions are met.

The GST/HST sales taxes are paid on top of the purchase price when you buy a new house, and how much you pay in taxes is determined by your province of residence.

Thankfully, you can reclaim all or part of the federal portion of the sales taxes, and even part of the provincial taxes through the GST/HST new housing rebate program.

Even though this rebate is mostly known for being used by home buyers who are buying a home for the first time, anyone can take advantage of it.

Further, you can qualify for the GST/HST new housing rebate if you are building your own home or if you are buying from a builder.

The GST/HST new housing rebate is equal to 36% of the GST that is required to be paid by a buyer in Canadian provinces. It gets as high as $6,300, but it counts on homes with fair market value (FMV) of $350,000 and below.

If the home you are buying is above this amount, a partial rebate can still be claimed. But the amount has to be lower than $450,000.

For the provinces where HST is paid (Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and New Brunswick), the rebate is 36% of the GST part of the tax.

It is also worth noting that there could also be extra rebates (specific to different provinces) available for what is left of HST in particular.

I Am Building My Home Myself. Do I Qualify for the GST/HST New Housing Rebate?

You may qualify for the GST/HST new housing rebate if you are building your home by yourself. To qualify, you must have built your new house on a piece of land that was owned/leased by you previously.

Or, you have to prove that over 90% of the interior in the house that existed before was either replaced or removed.

Eligibility is also possible if you had ownership of a non-residential building, but rebuilt it into a residential house.

Also, keep in mind that for expenses from substantial additions to the home to qualify for the rebates, the living space must have been enlarged by the additions (by a factor or more).

Who is Eligible for the GST/HST New Housing Rebate

You are eligible for this particular rebate if:

• If you are not buying it as part of a business partnership or corporation
• The home is officially your primary place of residence
• You have bought a new/renovated home from a developer or you bought a share of interest in a cooperative home.

How To Apply for the GST/HST New Housing Rebate

To apply for the GST/HST new housing rebate, you have to submit two forms along with your personal income taxes for the year.

The first one is the GST/HST new housing rebate worksheet which should reflect your rebate calculation for the GST, while the second one is the application form.

If you have purchased your home from a builder, then submit the GST190 Application Form. But if your home is owner-built, then submit the GST191 Application Form.

Remember that the deadline for submitting the application is often two years after the base date indicated on the forms you submitted.

In the case of provinces that allow the provincial tax rebates (BC, Nova Scotia, Saskatchewan, and Ontario), an additional form will be submitted and then mailed to the tax centres indicated on their websites.

There is a possibility that you will be asked to provide invoices or occupancy proof. Your payment will be received in about six months from the application.

GST/HST New Housing Rebates in Canada’s Provinces

Listed and explained below is all the useful information about the GST/HST new housing rebate in the different provinces of Canada:

1. Ontario New Housing Rebate

HST in the province of Ontario is 13%. GST is 5% (the provincial sales tax is 8%). The rebate you may get for GST is 36% of the GST amount of tax (up to a max of $6,300).

The rebate amount you may get for PST is 75% of the PST amount of tax (up to a max of $24,000 if you paid HST on the property’s land and $16,080 if you did not).

2. Nova Scotia New Housing Rebate

The HST in Nova Scotia equals 15% (the GST is 5% and 10% is the provincial sales tax). The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

The rebate amount you may get for the PST is 18.75% of the PST amount of tax (up to a max of $3,000).

3. Saskatchewan New Housing Rebate

The PST and GST in Saskatchewan are 6% and 5% respectively. The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

If the price of the purchase of the property is lower than $350,000, the rebate amount you may get for the PST is 42% of the amount of tax.

Subsequently, the rate of the rebate is continuously reduced till the price of purchase gets to $450,000 (this is when the rebate for PST becomes ineligible).

Other Provinces (With No Special Rebates)

British Columbia New Housing Rebate

The PST and GST in BC are 7% and 5% respectively.

The GST new housing rebate for BC is 36% of the GST amount of tax (up to a max of $6,300)

Quebec New Housing Rebate

The QST and GST in Quebec are 9.975% and 5% respectively.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Alberta New Housing Rebate

In Alberta, there is no provincial sales tax.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Manitoba New Housing Rebate

The RST and GST in Manitoba are 7% and 5% respectively.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300). For provincial tax, there is no rebate.

New Brunswick New Housing Rebate

In New Brunswick, the HST is 15% (GST is 5% and 10% is the provincial sales tax). When you buy a new house in New Brunswick, the tax becomes due.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300). Also, no rebate for provincial tax.

Newfoundland and Labrador New Housing Rebate

In Newfoundland and Labrador, the HST is 15% (GST is 5% and 10% is the provincial sales tax).

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300). No rebate for provincial tax.

Northwest Territories New Housing Rebate

In Northwest Territories, GST is 5%. There is no provincial sales tax.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Nunavut New Housing Rebate

In Nunavut, the GST is 5%. There is no provincial sales tax.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Prince Edward Island New Housing Rebate

In Prince Edward Island, the HST is 15% (GST is 5% and 10% is the provincial sales tax).

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Yukon New Housing Rebate

In Yukon, GST is 5%. There is no provincial sales tax.

The rebate amount you may get for the GST is 36% of the GST amount of tax (up to a max of $6,300).

Conclusion on the GST/HST New Housing Rebate

Getting a GST/HST new housing rebate is not a complicated process if you are well informed.

But keep in mind that GST/HST new housing rebates are not automatic like some other incentives and rebates (you have to apply via manual means).

We recommend that you procure the services of a tax accountant to help you sort out your taxes (if there have been some large transactions made by you within the tax year).

Because buying a new home definitely falls in that category, the listening ears and advice of an expert can go a long way.

FAQs on the GST/HST New Housing Rebate

What Is Fair Market Value?

Fair market value is a selling price for an item to which a buyer and seller can agree. In real estate, it is the ceiling price that may be gotten in a transaction between unconnected parties.

It is also used to calculate the New Residential Rental Property Rebate (which is a rebate for landlords and owners of brand new residential rental property).

What Is the Difference Between GST and HST?

Goods and Services Tax (or GST) is a value-added tax (VAT) imposed by the government of Canada. It directly affects most goods/services in the country.

This 5% VAT applies to Canada as a whole (even though some provinces make use of it as their solitary tax). Provinces that adopt GST as their only tax are Northwest Territories, Nunavut, Yukon, and Alberta.

On the other hand, Harmonized Sales Tax (HST) is GST and PST combined (and it is only used in certain provinces). Ultimately, the objective of this tax is to make collecting sales tax easier, and this is achieved by collecting one tax alone.

HST is used in the following provinces: Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and New Brunswick. The charge in these provinces for HST is 15% (Ontario is an exception with 13% being charged).