First-Time Home Buyers' GST/HST Rebate: Up to $50,000 Federal and $80,000 Ontario

Eligible first-time buyers of a newly built or substantially renovated home may now qualify for two important rebates. The federal first-time home buyers' GST/HST rebate can return up to $50,000 of the GST or federal part of the HST. In Ontario, a separate first-time home buyers' rebate can return up to $80,000 of the provincial part of the HST. Applications for both programs are open.

These rebates can significantly reduce the tax on a qualifying new home, but they do not automatically apply to every first purchase. The type of home, price, agreement date, construction timeline, occupancy and the buyer's history all matter.

What the federal rebate covers

The federal rebate applies to an eligible individual who buys, builds or substantially renovates a first home for use as their primary residence. It may also apply to a qualifying share in a co-operative housing corporation.

The maximum depends on the home's value:

• At or below $1 million, the rebate can recover 100% of the GST or federal HST portion, to a maximum of $50,000.
• Between $1 million and $1.5 million, the maximum rebate is gradually reduced.
• At or above $1.5 million, no federal first-time buyer rebate is available.

For example, the CRA says an eligible $1.25-million home is at the midpoint of the phase-out and can qualify for a federal rebate of $25,000.

Who is considered a first-time buyer

The CRA's test is not limited to people who have never owned property. Generally, the buyer must:

• be at least 18 and be a Canadian citizen or permanent resident;
• not have lived in a home owned by the buyer or their spouse or common-law partner as a primary residence during the current calendar year or the previous four calendar years;
• use the new home as their primary residence; and
• not have previously received this first-time buyer rebate, either personally or through a spouse or common-law partner.

The test applies to homes inside and outside Canada. The date on which the test must be met depends on whether the home is builder-purchased, owner-built, on leased land or a co-op share.

The agreement and construction dates

For a home and land purchased from the same builder, the agreement of purchase and sale must generally be entered into on or after March 20, 2025, and before 2031. Construction or substantial renovation must begin before 2031, be substantially completed before 2036, and ownership must transfer before 2036.

For an owner-built home, construction or substantial renovation must begin on or after March 20, 2025 and before 2031. Other deadlines and occupancy conditions also apply. A resale home is generally outside these programs because GST/HST is usually not charged on a previously occupied residential property.

Ontario's additional rebate

Ontario's first-time home buyers' rebate is now available and can provide up to $80,000 of the provincial HST portion. It follows the federal program's eligibility conditions and acts as a top-up to the existing Ontario new housing rebate. An eligible Ontario buyer may therefore receive up to $130,000 combined, although the actual amount depends on the home's value and all program conditions.

Applying and checking the paperwork

The application route depends on how the home was acquired. A builder may credit an assigned rebate against the amount payable, while an owner-builder generally files directly. Buyers should confirm whether the purchase price already assumes an assigned rebate and keep the agreement, statement of adjustments, invoices and occupancy records.

Before relying on a rebate at closing, review the CRA's official pages on the first-time home buyers' GST/HST rebate, eligibility criteria and how to apply.

Get in touch

Large rebates make the wording and dates in a purchase agreement especially important. For help understanding everyday legal documents and next steps in Ontario, contact JSR Legals at info@jsrlegals.ca.

This article provides general information current to July 2026. It is not legal or tax advice. Rebate rules and administrative requirements can change; confirm your eligibility with the CRA and obtain advice for your specific transaction.