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New Home HST Rebate Calculator – Ontario

HST Rebate Calculator

These rebates only apply to buyers who are purchasing a new house from a builder who has agreed to sell the house to the purchaser with the tax rebate included.

If you bought a new home from a builder in Ontario, you might be entitled to claim an HST rebate!

Most home builders include this rebate in the purchase price and have you assign the balance back to her/him at the closing of your home.

Calculate Now!

Are You Eligible?

You may qualify for an HST rebate if you have done any of the following in Ontario in the last two years:

  1. Built a house
  2. Bought a newly constructed home
  3. Bought a new condo
  4. Contracted somebody to build a house
  5. Extensively renovated a house or condominium
  6. Paid a contractor to renovate considerably your home or condo
  7. Added a significant addition to your home
  8. Rebuilt a home that was destroyed by a fire
  9. Bought shares in a newly constructed cooperative housing project
  10. Converted a non-residential property into a home

It Works Like This:

Your rebate is made up of two parts:

  1. If you bought or significantly renovated a home or a condo in Canada, you may be entitled to claim a new housing rebate in respect of the GST, or the federal part of the HST.
  2. New home buyers in Ontario may also be qualified to claim an Ontario new housing rebate in respect of the provincial part of the HST paid.

GST/HST Info Sheet GI-079, Harmonized Sales Tax: Ontario New Housing Rebate.

The buyer and the builder may agree to have the builder pay or credit both the amount of the GST/HST new housing rebate and the Ontario new housing rebate to the buyer.

In that case, the buyer does not have to submit an application directly to Canada Revenue Agency.  She or he will sign the rebate application and give it to the builder. The builder will then send the rebate application to the CRA and claim a deduction in its net tax calculation for the amount of the rebate.

The federal rebate is equal to 36% of the federal portion of GST/HST, to a maximum of $6,300 and the Ontario provincial rebate is equal to 75% of the Ontario portion of GST/HST, to a maximum of $24,000.

You will require to following to start filing for your rebate:

1. A copy of your agreement of purchase and sale.

2. A copy of your lease agreement.

3. A copy of the statement of adjustment provided to you by your lawyer on closing.

Now, The Bad News:

Rebate is only available to your principal place of residence. This means a home that you own, jointly or otherwise, that you intend to live in on a permanent basis. To be eligible, the intent to use the home as the primary place of residence must be evident at the outset of buying the home. An investment property, a recreational cottage, or property you might retire to in the remote future are not eligible.

Investment property owners should be aware that for you to keep the HST rebate, you must have rented out the property for at least a year. This does not mean from occupancy this means from closing.

Guides, Forms, and Applications From Canada Revenue Agency

GST/HST New Housing Rebate Guide

GST190 Calculation Worksheet

GST/HST New Housing Rebate Application for Houses Purchased from a Builder

GST/HST New Housing Rebate Application for Owner-Built Houses

GST191 Ontario Rebate Schedule Form

How to apply for the Ontario new housing rebate

The purchaser would apply for the Ontario new housing rebate by completing a provincial rebate schedule, RC7190-ON, GST190 Ontario Rebate Schedule that will form part of the GST/HST new housing rebate application, Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.

These forms can be used for all of the different types of rebates explained in this article. The buyers must complete both forms to apply for the rebate, even if the buyers are only entitled to claim the Ontario new housing rebate. Line by line instructions for completing these forms will be included in Guide RC4028.

The GST 190 Ontario Rebate Schedule and a revised GST/HST new housing rebate application is available on the CRA Web site. The rebate application and the rebate schedule will also be available in Guide RC4028.

All forms necessary to claim a GST/HST new housing rebate are available on the CRA Web site at www.cra.gc.ca/gsthstpub.

Be sure to get a copy of the booklet RC4028, GST/HST New Housing Rebate, available on the taxman’s website at cra.gc.ca and which includes provincial forms and instruction.

You’ll need to file the applicable forms to claim the rebate: Form GST191-WS, Construction Summary Worksheet, and Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses or Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.

All owners of a property must be individuals to qualify for the rebate (no owner can be a partnership or corporation). As for deadlines, you can file for the rebate generally within two years following the substantial completion of the building or renovation of your house. Finally, if you bought or built a home or other building to rent out to individuals as a place of residence, you may be entitled to a rebate as well (see Guide RC4231 on CRA’s website).

Short and Sweet:

  1. When you buy a new house in Ontario, Canada, you have to pay 13% tax called HST.
  2. HST consists of 2 different taxes: PST (provincial) 8% and GST (federal) that is 5% (8+5=13%)
  3. A portion of the tax is returned to buyers. Usually (not always) 75% of PST and around 36% of GST.
  4. To calculate a tax return credit of PST (provincial part) is easy. It is always 75% of the paid amount to the maximum of $24,000. So, if your house cost $1,000,000 and on that money you paid 13% HST tax, that equals $130,000. 8% or 80,000 is a provincial part. Of that $80,000 your credit should be 75%, but you do not get $60,000 back. You only get back $24,000 (maximum).
  5. Calculating Federal Part GST: There is a rebate of 36 percent of the federal portion of the HST if the home costs $350,000 or less.
  6. If the home costs between $350,000 and $450,000, there is a sliding scale.
  7. At $450,000 the rebate ends. Therefore, if your house costs more than $450,000 you do not get any money back from the federal portion (GST).

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HST Rebate Calculator

1 Comment
  1. building a new ICF home over the next year how to I apply for the tax rebate?

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DisclaimerThe material on this site is provided for general information only and should not be relied upon or used as the sole basis for making decisions without consulting more accurate, more complete or more timely sources of information.