GST/HST new residential rental property rebate

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• Eligibility for the GST/HST new residential rental property rebate
• Provincial new residential rental property rebates
• Purpose-built rental housing rebate
• Provincial purpose-built rental housing rebates
• GST/HST new residential rental property rebates you can claim
• Documents to include with the rebate application and to keep for your records

Eligibility for the GST/HST new residential rental property rebate 

You may be eligible for the GST/HST new residential rental property (NRRP rebate) if you are in one of the following situations:

• You are a landlord who purchased a newly constructed or substantially renovated residential rental property.
• You are a landlord who constructed your own residential rental property and had to account for the GST/HST under the self-supply rules.
• You are a landlord who constructed an addition to a multiple unit residential rental property and had to account for the GST/HST under the self-supply rules.
• You are a builder of residential housing who made an exempt sale of housing or an addition to multiple unit housing and an exempt long-term lease of the land under a single written agreement and had to account for the GST/HST under the self-supply rules (where the residential housing is a single unit, the rebate is available only if the purchaser is an individual who is eligible to claim the GST/HST new housing rebate).
• You are a person who made an exempt lease of land used for residential purposes (such as the rental of a residential lot or a site in a residential trailer park) and had to account for the GST/HST under the self-supply or change in use rules.

To be eligible for the GST/HST NRRP rebate, the fair market value of the qualifying residential unit must be less than $450,000 when the tax was payable on the purchase or self-supply of the property. For land or a site in a residential trailer park, the fair market value must be less than $112,500.

The rental housing or land must be intended for long‑term use as a residence. 

The NRRP rebate is provided to the person who paid the GST/HST (the landlord in the case of rental housing, or the lessor in the case of leased land).

If a public service body (PSB) is eligible to claim a public service bodies’ rebate (PSB rebate) for a residential rental property, it is not eligible to claim the GST/HST NRRP rebate for that same property.

Learn more: Guide RC4034, GST/HST Public Service Bodies’ Rebate.

Provincial new residential rental property rebates 

You may be eligible to claim a provincial NRRP rebate for some of the provincial part of the HST if your property is located in Newfoundland and Labrador or in Ontario.

The rules and conditions for claiming the Newfoundland and Labrador NRRP rebate are generally the same as those for claiming the GST/HST NRRP rebate.

If your property is located in Ontario, you may be eligible to claim the Ontario NRRP rebate even if you are not eligible to claim the GST/HST NRRP rebate only because the fair market value of the qualifying residential unit is $450,000 or more.

Learn more: GST/HST Info Sheet GI-201, Harmonized Sales Tax: Newfoundland and Labrador New Residential Rental Property Rebate.

Purpose-built rental housing rebate 

The GST/HST NRRP rebate has increased from the current maximum of 36% to 100% of the GST or federal part of the HST paid, or deemed paid, on the purchase or self-supply purpose-built rental housing, with no phase-out thresholds. This enhanced rebate, referred to as the purpose-built rental housing rebate (PBRH rebate), applies to residential unitthat qualify for the current GST/HST NRRP rebate, with specific additional conditions, where construction of the building or addition begins after September 13, 2023, but before 2031, and is substantially completed before 2036.

To qualify, residential units must meet the requirements for the existing GST/HST NRRP rebate and form part of a multiple unit residential complex with at least:

• 4 residential units each with private kitchen facilities, a private bath, and a private living area or 10 or more residential units; and
• 90% of residential units are held for the purpose of making certain exempt supplies of the unit, or for making exempt supplies that include giving possession or use of a unit to a person under a lease for occupancy as an individual’s place of residence

Projects that convert existing non-residential real property, such as an office building, into a residential complex would be eligible for the PBRH rebate if, in addition to the above conditions, the non‑residential real property met all of the following conditions on September 13, 2023:

• it was in existence
• it was not in the process of being constructed, and
• it was not being used as a residential complex

An addition to a multiple unit residential complex would be eligible for the PBRH rebate if all of the following conditions are met:

• The addition includes 4 or more residential units and at least 4 of those units each contains private kitchen facilities, a private bath, and a private living area; or 10 or more residential units.
• At least 90% of the residential units that form part of the addition are held for the purpose of making certain exempt supplies of the unit or for making exempt supplies that include giving possession or use of a unit to a person under a lease for occupancy as an individual's place of residence.
• At least 90% of the residential units that form part of the multiple unit residential complex and the addition combined are held for the purpose of making certain exempt supplies of the unit or for making exempt supplies that include giving possession or use of a unit to a person under a lease for occupancy as an individual's place of residence.

A PSB eligible to claim a GST/HST PSB rebate may also be eligible to claim a PBRH rebate. In this case, the PSB may claim either the PSB rebate or the PBRH rebate, but cannot claim both.

A housing co-op may also be eligible for the PBRH rebate where all the conditions have been met. In this case, the housing co-op is deemed not to be a co-op for the purchase or self-supply of the housing.

The PBRH rebate is not available for condominium units, single unit housing, duplexes, triplexes, and housing that is owned but located on leased land or within a residential trailer park. However, this housing would continue to qualify for the existing GST/HST NRRP rebate where the conditions for the existing rebate are met.

Provincial purpose-built rental housing rebates 

A rebate of 100% of the provincial part of the HST is also available for purpose-built rental housing situated in Newfoundland and Labrador, Nova Scotia, and Ontario where conditions for the federal PBRH rebate are met.

For such housing situated in New Brunswick, a rebate of 100% of the provincial part of the HST is available where construction of a residential complex begins after November 14, 2024, but before 2028, and is substantially completed before 2030.

For such housing situated in Prince Edward Island, a rebate of 100% of the provincial part of the HST is generally available up to a maximum of $35,000 per unit where construction of a residential complex is substantially completed before 2029, with a reduction to the rebate each year for a residential complex that is substantially completed after 2028.

Learn more: GST/HST Notice 336, Purpose-built Rental Housing Rebate.

GST/HST new residential rental property rebates you can claim 

You generally pay the GST/HST when you purchase a new or substantially renovated residential rental property from a builder. If you are the builder of a residential rental property, or if you make an addition to a multiple unit residential rental property, you are generally considered to have made a self-supply and to have paid and collected tax on the fair market value of the rental property or addition at the time that you lease or occupy the first unit of the property as a place of residence.

Long-term residential leases are generally exempt from GST/HST. This means that, as a residential landlord, you cannot claim an input tax credit to recover the GST/HST paid or payable on the purchase of a residential complex or that you accounted for on the self-supply of the complex. However, you may be eligible to claim the GST/HST NRRP rebate.

For a single unit residential complex, residential condominium unit, duplex, an addition of one unit to a multiple unit residential complex, or lease of land, use the following forms to apply for a NRRP rebate if you are eligible:

• Fill out Form GST524, GST/HST New Residential Rental Property Rebate Application to recover some of the GST or federal part of the HST.
• Fill out the appropriate provincial rebate schedule to recover some of the provincial part of the HST if the property is located in Newfoundland and Labrador or in Ontario.

For a co-op unit, a multiple unit residential property, or an addition of more than one unit to a multiple unit residential complex, use the following forms to apply for a NRRP rebate (including the PBRH rebate) if you are eligible:

• Fill out Form GST524, GST/HST New Residential Rental Property Rebate Application.
• Fill out Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units and
• Fill out the appropriate provincial rebate schedule if applicable.

Send the appropriate forms or file your rebate application online using Sign in to your CRA account.

Repaying the NRRP rebate

You will have to repay the NRRP rebate if you claimed a rebate for the lease of a building and land, and all of the following conditions are met:

• The rebate was for a qualifying residential unit (other than a unit located in a multiple unit residential property).
• The unit is sold within one year after it is first occupied as a place of residence after construction or after the last substantial renovation of the unit was substantially completed (except when the unit is seized or repossessed by a creditor or transferred to an insurer to settle an insurance claim).
• The purchaser is not buying the unit for their use as a primary place of residence or for a relation of the purchaser.

In this situation, you will have to repay an amount equal to the rebate plus interest at the prescribed rate. The interest will apply for the period beginning on the day the rebate was paid to you or used to reduce an amount you owed and ending on the day you repay the rebate.

Documents to include with the rebate application and to keep for your records

Documents you have to send to the CRA

You have to send appropriate documents with your NRRP rebate application.

If your application type is 6, you must send Form GST524 to the CRA, along with the following documents if you are a purchaser/landlord:

• a copy of the statement of adjustments
• a copy of your signed purchase and sale agreement (excluding attachments)
• a copy of the rental or lease agreement

If your application type is 6, you must send Form GST524 to the CRA, along with the following documents if you are a builder/landlord:

• a copy of the rental or lease agreement

For more information on which documents are needed for each application type, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

The processing of your rebate claim may be delayed or your rebate denied if the application form is not completed in full, the rebate calculation is incorrect, or if the documents requested are not submitted with your NRRP rebate application.

Documents you have to keep

Keep a copy of the completed forms. Also, keep all of your records, including original receipts, invoices, written contracts, agreements, and other documents you used to fill out the forms for six years after the end of the year to which they relate. All claims are subject to audit and, if requested, you have to make your records available to the CRA.