New homes attract GST/HST (5% federal + provincial component). As of March 12, 2026, eligible first-time buyers can recover up to $50,000 of federal GST under the new First-Time Home Buyers' GST/HST Rebate (Bill C-4) on new builds up to $1M. Non-FTHBs continue to claim the legacy New Housing Rebate (~$6,300 max on homes under $450K). In Ontario, a separate temporary measure rebates up to $80,000 of the 8% provincial portion — stacking with the federal program for combined relief of up to ~$130,000 for FTHBs.
New construction homes in Canada attract GST/HST on the purchase price — this is a major closing cost that resale homes do NOT have. Two federal rebate programs now exist in parallel.
Tax Rate by Province
| Province | Tax Rate |
|---|
| Ontario (HST) | 13% (5% federal + 8% provincial) |
| British Columbia (GST only) | 5% |
| Alberta (GST only) | 5% |
| Quebec (QST + GST) | 14.975% combined |
Federal Rebate Option A: New FTHB GST/HST Rebate (Bill C-4, March 12, 2026)
For first-time buyers only. This is the program that changes the math for most new-build FTHBs.
| Home Price | Federal Rebate |
|---|
| Up to $1,000,000 | 100% of the 5% federal GST — max $50,000 |
| $1,000,000 – $1,500,000 | Linear phase-out |
| Over $1,500,000 | No federal rebate |
Eligibility: 18+, citizen or PR, no home ownership in current year + 4 preceding calendar years (spouse/CLP counts), primary residence + first occupant. APS must be signed between March 20, 2025 and December 31, 2030.
Federal Rebate Option B: Legacy New Housing Rebate
For non-FTHBs and as a fallback. Permanent program, much smaller dollars.
| Home Price | Federal Rebate |
|---|
| Under $350,000 | 36% of GST — max ~$6,300 |
| $350K – $450K | Phases to $0 |
| Over $450,000 | No federal rebate |
Ontario Stacking: Enhanced Provincial HST Rebate (Temporary)
For APS signed April 1, 2026 → March 31, 2027, Ontario rebates the 8% provincial HST portion on new builds. Unlike the federal program's linear phase-out, Ontario uses a flat $80K cap from $1M to $1.5M, then phases down to a $24K legacy floor by $1.85M. Available to ALL new-home buyers, not just FTHBs.
| Home Price | Ontario Provincial Rebate |
|---|
| Up to $1,000,000 | 100% of 8% provincial HST (max $80,000 at $1M) |
| $1,000,000 – $1,500,000 | Flat $80,000 cap |
| $1,500,000 – $1,850,000 | Linear phase-down from $80,000 to $24,000 |
| $1,850,000+ | $24,000 (legacy Ontario NHR rate) |
Combined Ontario maximum: an FTHB on a $1M new build with APS in the Ontario window can recover up to ~$130,000 total ($50K federal + $80K provincial).
How the Rebate Is Handled
In most cases, the builder factors the rebate into the purchase price and claims it on your behalf at closing. For the new FTHB rebate, closings after March 12, 2026 are typically builder-credited; earlier qualifying closings (APS on/after March 20, 2025) require a retroactive CRA filing.
Owner-Occupied Requirement
Both programs require the home to be your primary residence (or a qualifying family member's). Investment purchases do NOT qualify for either rebate.
Your Next Steps
- Determine which federal rebate applies — FTHB GST Rebate (if eligible) is dramatically more generous
- In Ontario: check if your APS falls in the April 1, 2026 – March 31, 2027 window for provincial stacking
- Confirm with your builder that the rebate is built into your price (and which one)
- Speak with your real estate lawyer about the CRA filing process
- Read the full guide → First-Time Home Buyer Rebates Guide