The First-Time Home Buyers' GST Rebate on New Homes: What It's Worth (2026)
First-time buyers recover 100% of GST on a new home up to $1 million ($50,000 max), phasing out to zero at $1.5M. Who qualifies and what a $800,000 build saves.
The First-Time Home Buyers' GST Rebate refunds all of the 5% federal GST on a newly built home priced up to $1 million (a maximum of $50,000), and phases out on a straight line to zero at $1.5 million. It applies to purchase agreements with a builder signed on or after 20 March 2025, to owner-built homes, and to co-op shares, for buyers who have not owned a home in the current or previous four calendar years and who will occupy the home as a primary residence. The legislation received Royal Assent on 12 March 2026. It sits alongside the older federal new-housing rebate (maximum $6,300), which remains for non-first-time buyers. Ontario's matching enhancement is now law (CRA form RC7190-ON): for agreements signed 1 April 2026–31 March 2027, the provincial rebate is 100% of the 8% provincial portion up to $80,000, and Ontario adds a 5% top-up up to $50,000. First-time buyers pair the federal 5% rebate with the enhanced provincial one for up to $130,000 total relief.
Figures come from the CostToClose GST/HST calculator.
What it is worth
| Price | GST (5%) | FTHB rebate | Old federal rebate (for comparison) | Ontario enhanced rebate (enacted, Apr 2026–Mar 2027 agreements) |
|---|---|---|---|---|
| $500,000 | $25,000 | $25,000 | $0 (phased out above $450,000) | $40,000 |
| $800,000 | $40,000 | $40,000 | $0 | $64,000 |
| $1,000,000 | $50,000 | $50,000 | $0 | $80,000 |
| $1,250,000 | $62,500 | $25,000 | $0 | $80,000 |
| $1,500,000 | $75,000 | $0 | $0 | $80,000 |
Figures computed using the CostToClose calculator. The Ontario figures reflect the enacted 8% enhancement (CRA form RC7190-ON): full to $1.5M, then tapering to $24,000 at $1.85M.
Eligibility
- At least 18, and a Canadian citizen or permanent resident.
- No ownership of a home lived in as a primary residence, by you or your spouse, in the year of purchase or the previous four calendar years.
- The home is new (or substantially renovated), bought from a builder, and will be your primary residence.
- Agreement of purchase and sale dated 20 March 2025 or later; construction must begin before 2031 and substantially complete before 2036.
- One claim per lifetime; where there are multiple buyers, all must qualify with limited exceptions.
How it is claimed
Through the builder at closing, as with the older rebate: the builder credits the rebate against the price and claims it from CRA. If the builder will not, the buyer applies to CRA after closing. On assignments, the assignee's eligibility governs. See The HST trap in assignment sales.
Worked example from the calculator
First-time buyer, $800,000 new townhouse in Ontario, agreement signed May 2026:
| Item | Amount |
|---|---|
| GST (5%) | $40,000 |
| FTHB GST rebate | −$40,000 |
| Ontario portion of HST (8%) | $64,000 |
| Ontario enhanced rebate (100% of the 8% portion, agreements Apr 2026–Mar 2027, enacted) | −$64,000 |
| Net tax on the home | $0 |
Reproduce this. Turn the "Ontario agreement Apr 2026–Mar 2027" toggle off in the calculator to see the base Ontario rebate (75% of the 8% portion, max $24,000) instead.
Frequently asked questions
How much is the first-time home buyer GST rebate?
100% of the GST on a new home up to $1 million (max $50,000), phasing out to zero at $1.5 million.
Can I combine it with the old GST new housing rebate?
No. You claim one or the other; the new one is larger at every price where both could apply.
Does it apply to resale homes?
No. Only newly built or substantially renovated homes, owner-built homes, and co-op shares in new buildings.
Is there a provincial version?
Ontario's enhancement is now law: 100% of the 8% provincial portion back (up to $80,000) plus a 5% top-up (up to $50,000) for agreements from April 2026 to March 2027 — up to $130,000 total. Other provinces have not announced changes as of September 2026.
What is the first-time buyer test?
No home owned and occupied as a primary residence by you or your spouse in the year of purchase or the previous four years — the same test as the FHSA and Home Buyers' Plan.
Sources
- Department of Finance Canada, First-Time Home Buyers' GST Rebate — legislation (Royal Assent 12 March 2026) — checked 14 Sept 2026
- Canada Revenue Agency, GST/HST new housing rebate — checked 14 Sept 2026
- Canada Revenue Agency, Ontario Temporary Enhanced New Housing Measures — claim process and form RC7190-ON (enacted, retroactive to 1 April 2026) — checked 18 Sept 2026
General information only, checked against the sources listed on the date shown, not legal, tax, or mortgage advice. Rules change; confirm with your lender or the government office concerned.