Applications are open for the federal first-time home buyers’ GST/HST rebate, and the Canada Revenue Agency has confirmed that eligible buyers in Ontario may also claim a separate provincial rebate of up to $80,000.
The updated CRA guidance applies to individuals buying, building or substantially renovating a first home and sets out how the federal and Ontario measures can reduce the sales tax paid on qualifying new housing.
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What the first-time home buyers rebate covers
The federal first-time home buyers’ GST/HST rebate covers 100 per cent of the GST, or the federal portion of the HST, on an eligible new home valued at up to $1 million.
For homes valued between $1 million and $1.5 million, the federal rebate is gradually reduced as the value rises.
No federal first-time home buyers’ GST/HST rebate is available for a home valued at $1.5 million or more.
The maximum federal benefit is $50,000, according to CRA information released when applications opened in March 2026.
The federal measure is intended for newly constructed or substantially renovated homes, including homes purchased from a builder and qualifying owner-built homes.
Ontario rebate availability
Ontario buyers who meet the federal first-time buyer conditions may also qualify for the Ontario first-time home buyers’ rebate.
The Ontario program refunds up to $80,000 of the provincial portion of the HST for eligible first homes in the province.
The provincial rebate can apply where an individual is buying, building or substantially renovating a first home, and it follows the eligibility conditions for the federal FTHB GST/HST rebate.
The Ontario amount is separate from the federal rebate because it relates to the provincial part of the HST.
That does not mean every eligible buyer will receive the full $50,000 federal amount plus $80,000 from Ontario.
The actual benefit depends on the home’s value, the HST paid, the type of transaction and whether other housing rebates also apply.
Federal and Ontario rebates can work together
For some buyers, the federal first-time home buyers’ rebate can act as a top-up to the existing GST/HST new housing rebate.
The CRA says the federal first-time buyer measure can be claimed in addition to the existing federal new housing rebate when the requirements for both are met.
Ontario also has other housing rebate programs, including its existing new housing rebate and an enhanced new housing rebate for certain qualifying purchases.
Where multiple Ontario rebates apply, the total provincial relief cannot exceed the applicable provincial HST paid and program limits.
Buyers should therefore avoid treating the maximum figures as an automatic combined payment and should review the applicable CRA calculation and RC4028 guide before signing or closing.
Who may qualify
The federal rebate is generally aimed at individuals who are acquiring a new or substantially renovated home for use as their own primary place of residence.
Depending on the transaction, the home may be a house, condominium unit, duplex, mobile home, modular home, floating home or qualifying co-operative housing interest.
For an owner-built home, construction or substantial renovation must generally have started on or after March 20, 2025, and the other timing and occupancy conditions must be satisfied.
For a home purchased from a builder, the purchase agreement must generally have been entered into on or after March 20, 2025, and before 2031, subject to the detailed rules for the particular application type.
First-time buyer status is determined under the program’s specific rules and can depend on whether the buyer or a relation previously occupied a home as a principal residence.
All owners must meet the relevant conditions, and corporations and partnerships cannot claim the individual new housing rebate.
How to apply for the GST/HST rebate
Buyers purchasing from a builder may be able to have the rebate credited against the amount payable at closing if the builder agrees and the buyer meets the eligibility requirements.
If the builder does not provide the credit, the buyer can apply directly to the CRA through a CRA account or by mailing the applicable form.
For a home purchased from a builder, the main application is Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
For an owner-built home, applicants generally use Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses.
Applicants should keep the purchase agreement, closing documents, proof of occupancy and other records needed to establish the home’s value, use and eligibility.
The CRA says applications are usually subject to a two-year deadline from taking ownership or completing construction, although the precise deadline depends on the circumstances.
The CRA’s announcement on applications for the rebate says applications are available.
What Ontario buyers should check before applying
- Confirm that the home is new or substantially renovated and will be used as a primary residence.
- Check the home’s value against the federal $1 million and $1.5 million thresholds.
- Determine whether the purchase, construction or renovation date falls within the program’s qualifying periods.
- Ask the builder whether the federal or Ontario rebate can be credited at closing.
- Use the CRA’s forms and calculations rather than relying only on a quoted maximum rebate.
The CRA’s current guidance lists the Ontario first-time home buyers’ rebate as available and directs applicants to the application process and the detailed RC4028 guide.
For buyers in other provinces, the federal rebate may still be available, but provincial relief depends on the province and the applicable HST rules.
Anyone uncertain about eligibility should review the CRA guidance or obtain professional tax advice before filing a claim.
Frequently Asked Questions
How much is the federal first-time home buyers’ GST/HST rebate?
Eligible buyers can receive up to $50,000 on qualifying new or substantially renovated homes, with the full federal rebate applying to homes valued up to $1 million and a reduced amount for homes between $1 million and $1.5 million.
How much is the Ontario first-time home buyers’ rebate?
Eligible Ontario buyers may receive up to $80,000 of the provincial portion of the HST on a qualifying first home.
Can buyers receive both the federal and Ontario rebates?
Potentially, yes. The measures cover different portions of HST, but the final amount depends on the home’s value, tax paid, transaction type and other rebate limits.
Can a builder provide the rebate at closing?
A builder may credit an eligible rebate against the amount payable at closing. If the builder does not provide the credit, the buyer can generally apply directly to the CRA.
How long do buyers have to apply?
The CRA says the deadline is usually within two years of taking ownership or completing construction, but applicants should confirm the exact deadline for their transaction.
Fact-Checked: Key rebate amounts, eligibility thresholds, Ontario availability and application details were checked against current Canada Revenue Agency guidance and related official government information.
Disclaimer: This article provides general information only and does not replace personalized tax advice or a review of the CRA’s detailed eligibility rules.