Buying a new home in Ontario typically includes paying HST — the Harmonized Sales Tax combining 5% federal GST and 8% provincial PST. But many new home buyers qualify for significant HST rebates that can recover thousands of dollars.
This guide explains the Ontario new housing HST rebate, how to calculate it, and how to claim it.
What Is the Ontario New Housing HST Rebate?
The Ontario New Housing Rebate is a partial refund of the HST paid on a newly constructed home. It consists of two parts:
- Federal GST/HST New Housing Rebate — administered by CRA
- Ontario New Housing Rebate — administered provincially through CRA
Together, they can provide a rebate on a significant portion of the HST you paid on your new home purchase.
Who Qualifies for the Ontario HST Rebate?
To qualify for the Ontario HST new housing rebate, you generally must:
- Purchase a new or substantially renovated residential property
- Intend to use it as your primary place of residence (or a close relative's primary residence)
- Have a purchase price below the qualifying threshold
- Be an individual (not a corporation) purchasing for personal use
The rebate applies to:
- New construction homes purchased from a builder
- Owner-built homes
- Substantially renovated homes
- Mobile homes and floating homes
HST Rebate Calculator: Ontario New Homes
For homes purchased at $450,000 or less:
The maximum federal GST/HST rebate is $6,300 (36% of the 5% GST component).
The Ontario provincial rebate is 75% of the Ontario component (8% portion), to a maximum of $24,000.
For homes between $350,000 and $450,000:
The federal rebate phases out between $350,000 and $450,000. Ontario's provincial rebate does not phase out at the same thresholds — it applies to the Ontario component regardless of price, up to the maximum.
For homes over $450,000:
The federal GST/HST New Housing Rebate is not available. However, the Ontario provincial component rebate may still apply if the property qualifies.
Example calculation for a $400,000 new home:
| Component | Amount | |-----------|--------| | Purchase price | $400,000 | | HST at 13% | $52,000 | | Federal rebate (partial phase-out) | ~$4,410 | | Ontario rebate (75% of 8% portion) | $24,000 | | Effective net HST paid | ~$23,590 |
Note: These are estimates. Use the CRA's official rebate calculator for your specific situation.
New Residential Rental Property Rebate (NRRP)
If you're purchasing a new home to rent out rather than live in, you don't qualify for the personal-use rebate. However, you may qualify for the New Residential Rental Property (NRRP) Rebate if:
- The property is intended for long-term residential rental (not short-term like Airbnb)
- You are registered for HST
- The unit is a qualifying residential unit
The NRRP rebate works similarly to the personal-use rebate and can recover a significant portion of the HST paid.
How to Claim the Ontario HST Rebate
The rebate is typically handled through your builder at closing — most builders include the rebate in the transaction and submit the paperwork on your behalf. You sign over the rebate to the builder in exchange for a reduced purchase price.
If you're building your own home or the builder did not handle it, you must file:
- Form GST190 — GST/HST New Housing Rebate Application (Federal)
- Form RC7190-ON — GST190 Ontario Rebate Schedule
Applications must be filed within two years of the closing date.
Ontario HST and Assignment Sales
If you purchased a pre-construction condo and later sold your assignment before closing, HST rules are complex. Assignment sales by original buyers may be subject to HST. This is an area where professional advice is strongly recommended.
Key Dates for HST Rebate Claims
The Ontario HST rebate is not a filing deadline you track annually — it's a one-time claim tied to your closing date. However, the two-year deadline from your closing date is critical.
For ongoing HST/GST remittance deadlines for your business, see our When Is HST Due in Canada guide.
For other recurring HST/GST deadlines for your business, use the free AINative Tax Deadline Calculator to track quarterly and annual HST remittance dates.
Frequently Asked Questions
Does the rebate apply to resale homes? No. The Ontario new housing HST rebate applies only to newly constructed or substantially renovated properties. Resale homes are not subject to HST and therefore do not qualify for the rebate.
Can I claim the rebate on a vacation property? No. The rebate requires the home to be your primary place of residence or a close relative's primary place of residence.
What if the builder already included the rebate in my price? In most builder purchases, the rebate is already factored into the listed price. Confirm with your lawyer or real estate agent whether the rebate is assigned to the builder or retained by you.
Important Disclaimer
HST rebate rules are complex and depend on your specific circumstances. Always verify your eligibility with a qualified tax professional or lawyer before closing. This guide is for informational purposes only and does not constitute tax advice.
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