GST New Housing Rebate Calculator
Every newly built home in Canada carries 5% federal GST, while resales skip it entirely. Two rebates cut that bill down: the standard New Housing Rebate and the 2025 first-time buyer rebate, which can take it all the way to zero. This page covers the federal part. In HST provinces the provincial portion stacks on top, so if you are buying in Ontario see the Ontario HST rebate page too. It runs on the same tax engine as the full Headroom calculator, using 2026 rules.
How the GST rebates work
GST applies when you buy a newly built or substantially renovated home from a builder. Resale homes are exempt. The federal rate is 5% everywhere in Canada, and two rebates can claw part or all of it back, depending on the price and on who is buying.
| Rebate | How much | Full up to | Zero at |
|---|---|---|---|
| New Housing Rebate | 36% of the GST, max $6,300 | $350,000 | $450,000 |
| First-time buyer rebate (2025) | 100% of the GST, max $50,000 | $1,000,000 | $1,500,000 |
Above $450,000 the standard rebate is $0
The New Housing Rebate is full up to $350,000, then shrinks in a straight line and disappears completely at $450,000. Not reduced, zero. If you are not a first-time buyer and the home costs more than $450,000, you owe the full 5%.
The 2025 first-time buyer rebate
First-time buyers get 100% of the GST back on a new build priced up to $1,000,000, worth as much as $50,000. Between $1,000,000 and $1,500,000 it phases out in a straight line to zero. Tick the box above to see it applied.
This page models the federal 5% only. In Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and PEI the provincial portion of the HST stacks on top with its own rebate rules, and Québec charges QST with its own rebate. For Ontario homes, the Ontario HST rebate page adds the 8% provincial layer.
A worked example
On a $400,000 new build, the 5% GST is $20,000. The standard New Housing Rebate returns $3,150, leaving $16,850 owed. A first-time buyer instead gets the full $20,000 back under the 2025 rebate and owes $0.
At $500,000 the standard rebate is gone entirely: the GST is $25,000 and every dollar of it is owed. A first-time buyer still owes $0.
Even at $900,000, where the GST is $45,000, a first-time buyer owes $0. The 2025 rebate covers 100% of the GST on homes up to $1,000,000.
Common questions
Do resale homes pay GST?
No. GST applies to newly built or substantially renovated homes sold by a builder. A typical resale between owners is exempt, which is one reason a new build's sticker price and a resale's are not directly comparable.
Why is my rebate $0?
If you are not a first-time buyer, the standard New Housing Rebate phases out between $350,000 and $450,000 and is $0 above that. On most new builds in Canada's bigger markets the standard rebate returns nothing, and the full 5% is owed.
Who counts as a first-time buyer for the 2025 rebate?
Broadly: you are 18 or older, a Canadian citizen or permanent resident, you have not owned or lived in a home you or your spouse owned this calendar year or in the previous four, and the new home will be your primary residence. The purchase agreement generally has to be dated on or after May 27, 2025. Your lawyer or notary can confirm you qualify before you count on the money.
What about owner-built homes?
A GST rebate exists for owner-built homes too, but it works differently: it is claimed on the GST you actually paid on construction costs, not on a purchase price. This calculator models homes bought from a builder, so do not use these figures for an owner-built claim.
Planning the whole purchase, not just the GST?
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