The HST New Housing Rebate allows Canadian homeowners to recover a portion of the HST paid on major renovations and new home purchases. For a substantial renovation, you can recover up to $30,000 in HST. The rules are specific and often misunderstood — this guide clarifies who qualifies and how to apply.
| Category | Cost Range | Notes |
|---|---|---|
| Federal portion rebate | Up to $6,300 | 36% rebate of the 5% federal GST paid on qualifying work, on homes valued up to $450,000. For homes $450,000–$484,500, the rebate is gradually reduced to zero. |
| Ontario provincial portion (NRRP) | Up to $24,000 | The Ontario New Residential Rental Property rebate provides 36% of the 8% Ontario portion for qualifying renovations and conversions. The total Ontario + Federal rebate can reach $30,000. |
| BC provincial portion | Up to $42,500 (new homes) | BC's First-Time New Home Buyers' bonus and New Housing Rebate apply primarily to new home purchases. Substantial renovation rules are similar to federal rules. |
| Quebec provincial rebate | Up to $9,975 | Quebec homeowners can claim the QST portion on qualifying new housing and substantial renovations through Revenu Québec. |
| Substantial renovation threshold | 90% of the home | To qualify as a 'substantial renovation,' 90% or more of the interior of the existing housing must be removed or replaced. Additions and normal renovations do not qualify. |
| Owner-built home | Full GST/HST | If you build your own home as your primary residence, you can claim back GST/HST paid on materials and contractor services. Application filed after the home is complete. |
The CRA defines a substantial renovation as one where at least 90% of the interior of a building is removed or replaced. A large kitchen + bathroom + basement renovation does not qualify. A full gut to the studs typically does.
The rebate is only available for your primary place of residence. Investment properties and rental units use different programs (New Residential Rental Property Rebate).
You must file your HST rebate application within 2 years of the end of the calendar month in which you first occupy the renovated home.
HST rebate applications over $10,000 are complex and often reviewed by CRA. A tax professional or accountant who specializes in real estate transactions is strongly recommended.
The CRA considers a substantial renovation one where 90% or more of the interior of the existing house is removed or replaced, keeping only the foundation, exterior walls, interior supporting walls, floors, roof, and staircase. Most kitchen or bathroom renovations, even large ones, do not meet this threshold.
The federal GST/HST New Housing Rebate provides 36% of the 5% federal tax on homes up to $450,000 — a maximum of $6,300 federally. With provincial portions (Ontario, BC, Quebec), the total rebate can reach $30,000 or more in some provinces.
Not through the New Housing Rebate, which requires a 90% substantial renovation. However, there is no separate HST rebate for standard renovations — you simply pay HST to your contractor as part of the price. The exception is if you're a self-employed person using part of your home for business.
File form GST191 (for owner-built homes) or GST190 (for substantial renovations) with the CRA. Provincial portion forms vary by province. File within 2 years of the qualifying event. A tax accountant familiar with real estate transactions can help maximize your claim.
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