HST on New Builds

New construction is taxed in a way resale homes are not: the 5% federal GST applies to the price, and in HST provinces the provincial portion stacks on top. First-time buyers can now get the federal GST back — in full, on homes up to $1 million. This calculator works out the GST or HST on a newly built home, the first-time buyer rebate, and the net tax you actually pay.

What it answers, and what it doesn't

It answers: the federal GST owing on a new build's price, the First-Time Home Buyers' GST Rebate for eligible buyers, and the net tax after the rebate. It also shows where the phase-out between $1 million and $1.5 million lands for your price.

It does not answer: the provincial half of HST in Ontario and the Atlantic provinces — the federal rebate covers only the 5% federal portion. It does not handle Quebec's QST, assignment sales, or substantial renovations (separate rebate rules). And it cannot tell you whether your builder credits the rebate at closing or leaves you to claim it afterward.

Every input, explained

Purchase price. The price before tax, as stated in the purchase agreement. New-build contracts sometimes quote tax-included or tax-extra; entering the wrong one corrupts everything downstream. Confirm which figure you have with the builder.

Province. This sets whether you pay GST only (Alberta, BC, Saskatchewan, Manitoba, the territories) or full HST (Ontario 13%, Nova Scotia, New Brunswick, Newfoundland and Labrador, PEI). Quebec charges GST plus QST separately. The calculator's rebate math applies to the federal 5% in every case.

Agreement date. The rebate applies to purchase agreements signed 20 March 2025 or later, and the measure received Royal Assent on 12 March 2026. An agreement signed 19 March 2025 is outside the program. The common error is using the closing date — the test is the agreement date.

First-time buyer. Three conditions, not just one: you're 18 or older, a Canadian citizen or permanent resident, and neither you nor your spouse or common-law partner owned a home in this calendar year or the previous four (CRA GST/HST Memorandum 19-3-10). That four-year test is the same federal definition used for the FHSA and HBP, not the stricter never-owned test the provinces use for land transfer relief — but the citizenship/PR and age conditions are specific to this rebate and don't carry over from those programs.

How the math works

The calculator takes 5% of the price as the federal GST. If you are an eligible first-time buyer with a qualifying agreement date, it computes the rebate: 100% of the GST (up to $50,000) on prices up to $1 million, then phasing out linearly to zero at $1.5 million. Net tax is GST minus rebate. This rebate replaces the older federal new-housing rebate (maximum $6,300) — you get one or the other, not both.

Worked example: $800,000 new townhouse, first-time buyer, agreement signed June 2025

Federal GST: 5% × $800,000 = $40,000.
Price is under $1 million, buyer is first-time, agreement is after 20 March 2025: full rebate applies.
Rebate: 100% × $40,000 = $40,000.
Net federal tax: $0.

Now the same buyer at $1,200,000:

Federal GST: 5% × $1,200,000 = $60,000.
Phase-out: the $50,000 maximum rebate shrinks linearly across the $500,000 band from $1.0M to $1.5M. At $1.2M the buyer is 40% through the band, so the rebate is $50,000 × (1 − 0.40) = $30,000.
Net federal tax: $60,000 − $30,000 = $30,000.

In both cases, ask the builder whether the rebate is credited against the price at closing or claimed afterward. A credit means $40,000 less cash on closing day; a claim-afterward means you front the money and wait.

Provincial quirks and edge cases

The rebate is federal-only. In Ontario, 13% HST means $65,000 in provincial tax on an $800,000 build that no federal rebate touches. Ontario's enhanced new-housing rebate — up to $80,000 of the 8% provincial HST, confirmed in force by the CRA for agreements signed April 1, 2026 through March 31, 2027 — closes most of that gap if your agreement falls in that window; toggle "Ontario agreement Apr 2026–Mar 2027" above to see it applied.

Quebec adds QST on top. A new build in Quebec carries 5% GST plus QST, and the federal rebate addresses only the GST. Quebec buyers should model both taxes and check Revenu Québec's separate rebate rules.

BC and Alberta buyers pay GST only. No provincial sales tax applies to the purchase price in these provinces, so the federal rebate can take the entire sales-tax load to zero on an eligible home under $1 million.

Land transfer tax still applies. The GST rebate does not touch land transfer tax (or Quebec's welcome tax). A new build in Toronto still carries the provincial and municipal transfer taxes, and BC's new-build transfer-tax exemption (up to $1.1M, phasing out by $1.15M) is a separate claim — you take the larger of the two BC exemptions, not both.

The old $6,300 rebate is gone. The new first-time rebate replaces the older federal new-housing rebate; they do not stack.

Questions to ask your builder and tax pro

(Builder) Is the GST rebate credited against my purchase price at closing, or do I pay the full tax and claim it afterward?
(Builder) Is the price you quoted tax-included or tax-extra, and which rebates is it already net of?
(Tax pro) Do I meet the four-year first-time test, considering my spouse's ownership history as well as mine?
(Tax pro) My agreement date is near 20 March 2025 — does my specific agreement qualify, and what documentation proves the date?

Frequently asked questions

Does the rebate apply to resale homes?

No. It is for newly built homes only — including condos bought from a builder and owner-built homes in some cases. A resale purchase gets no GST rebate because no GST was charged on it.

We are buying together and only one of us is a first-time buyer. Do we qualify?

The program's first-time test looks at both spouses or common-law partners. If either owned a home in the test period, the couple does not qualify. Get this answered before you sign, not after.

What if my agreement was signed before 20 March 2025?

The new rebate does not apply. The older federal new-housing rebate rules may apply to your purchase instead — worth checking, since it is better than nothing, though far smaller.

Can I claim the rebate and the FHSA or HBP too?

Yes. The rebate is about the tax on the purchase; the FHSA and HBP are about funding the down payment. They address different parts of the transaction and can be combined.

Is the rebate paid to me or to the builder?

Either, depending on the arrangement. Builders often credit it against the price and claim it themselves; otherwise you claim it from the CRA after closing. The economics are the same, but the timing of your cash flow is not — confirm which one your contract uses.

Rules and rates as of September 2026. This is general information for Canadian home buyers and sellers, not financial, legal, or tax advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.