How this calculator works
Enter the purchase price or fair market value of a new home or a substantially renovated home before tax. The federal part of the GST/HST is 5% of the price in every province, whether it is collected as the GST or as the federal component of the HST. The rebate is 36% of that federal part, which is 1.8% of the price, up to a maximum of $6,300. The full rebate applies at a price of $350,000 or less. Between $350,000 and $450,000 the rebate is reduced in a straight line, and at $450,000 or more there is no federal rebate. The purchaser must generally be the first person to occupy the home as a primary residence, must have paid the GST/HST, and must apply using the CRA rebate form, usually through the builder. Out of scope: provincial new housing rebates, including Ontario's rebate of up to $24,000, the BC and Quebec rebates, the GST/HST rebate for rental housing, assignments and resale homes. A separate first-time home buyer GST/HST rebate created in 2026 can refund 100% of the federal part for eligible homes valued up to $1 million, with a phase-out to $1.5 million; it is not included here. Canada differs from the United States: this is a rebate of the federal consumption tax on a new home, not a deduction for state or local property tax.
Formula
Federal tax = price x 5%. If the price is $350,000 or less, rebate = 36% x federal tax, to a maximum of $6,300. If the price is between $350,000 and $450,000, rebate = 36% x federal tax x ($450,000 - price) / $100,000. At $450,000 or more, the rebate is zero. Price after rebate = price - rebate.
Worked example
On a $300,000 new home, the federal part of the GST/HST is $15,000 and the rebate is 36%, or $5,400, leaving $294,600. At $350,000 the rebate reaches its maximum of $6,300. At $400,000 the federal tax is $20,000, the phase factor is 0.5, and the rebate is $3,600. At $450,000 the rebate is zero.
Frequently asked questions
How much is the GST/HST new housing rebate in 2026?
The federal rebate is 36% of the 5% federal part of the GST/HST, to a maximum of $6,300. That maximum is reached at a home price of $350,000 and falls to zero at $450,000.
What is the $350,000 threshold?
A home priced at $350,000 or less receives the full 36% federal rebate. Above $350,000 the rebate is reduced by 36% of the federal tax for every $100,000 of price above the threshold, so it reaches zero at $450,000.
Does the rebate apply to a substantial renovation?
Yes, the same federal new housing rebate can apply to a substantially renovated home that is used as a primary residence, subject to the CRA conditions. The price test uses the fair market value after the renovation.
Is there a first-time home buyer GST/HST rebate in 2026?
Yes. A separate first-time home buyer rebate, for agreements of purchase and sale on or after March 20, 2025, can refund 100% of the federal part for eligible homes valued up to $1 million, with a phase-out to $1.5 million. It is not included in this calculator.