First-time home buyers’ (FTHB) GST/HST rebate

Status: Not yet available

Proposed legislation was tabled in the House of Commons to introduce a first-time home buyers’ (FTHB) GST/HST rebate, which would eliminate the GST (or federal portion of the HST) for first-time home buyers on a new home valued up to $1 million. The rebate would also allow first-time home buyers to reduce the amount of tax they pay on a new home valued between $1 million and $1.5 million.

If the proposed legislation receives Royal Assent, a first-time home buyer may be eligible for the FTHB GST/HST rebate in addition to the existing GST/HST new housing rebate. Where both rebates apply, the GST/HST FTHB rebate would act as a top up to the existing GST/HST new housing rebate.

Applications are not yet available.

For technical enquiries, contact GST/HST Rulings at 1-800-959-8287.

On this page

• What is the proposed rebate
• Who may be eligible
• Applying for the rebate
• Related information

What is the proposed rebate

The proposed FTHB GST/HST rebate is for eligible individuals who are buying or building their first home.

This first home must be:

• Newly built or substantially renovated
• Bought for use as the individual's primary place of residence

Depending on the value of the home, the individual could recover up to 100% of the GST (or federal portion of the HST) paid, up to $50,000.

For new homes valued:

• Up to $1 million, the rebate would be up to 100% (up to a maximum rebate of $50,000)
• Between $1 million and $1.5 million, the maximum rebate would be gradually reduced
• At or above $1.5 million, there is no rebate

Example of a reduced rebate

An eligible individual purchases a new home for $1.25 million.

A new home valued at $1.25 million is the mid-point between $1 million and $1.5 million, and would be eligible for 50% of the maximum rebate of $50,000.

The individual would be eligible for a rebate of $25,000 (which is 50% of the $50,000 maximum rebate).

More details on the calculation will be published once applications are available.

Who may be eligible

1. You must be a first-time home buyer.

   Generally, to be considered a first-time home buyer, all of the following must be true (tick the boxes that apply):

   • You are at least 18 years of age

   • You are a Canadian citizen or permanent resident of Canada

   • You have not lived in a home, that you or your spouse or common-law partner owned, or jointly owned, whether in or outside of Canada, as your primary place of residence at any time in the calendar year or in the previous 4 calendar years

     Examples of calendar year or in the previous 4 calendar years

     If you take ownership of a new home from a builder in 2025, you must not have previously owned a primary residence in the 2025 calendar year, or in 2024, 2023, 2022, or 2021 (the previous 4 calendar years).

     Example 1:

     An individual previously lived in a home that they owned and then sold it in June 2021.

     The individual then entered into an agreement to purchase a new home from a builder on or after May 27, 2025 and they took ownership of the home in August 2025.

     The individual would not be considered a first-time home buyer in this case, since they lived in a home that they owned in 2021, which is in the previous 4 calendar years from the year when they took ownership of the new home.

     Example 2:

     An individual previously lived in a home that they owned and then sold it in June 2021. The individual has lived in a rental apartment since this date.

     The individual then entered into an agreement to purchase a new home from a builder on or after May 27, 2025 and they took ownership of the home in February 2026.

     The individual would be considered a first-time home buyer in this case, as they did not live in a home that they or their spouse owned in the calendar year or previous 4 calendar years.

   • You meet all of the criteria above on a specific date. This date will depend on whether you bought your home from a builder, or built it yourself:

     If you purchased a home from a builder

     You must be a first-time home buyer at the time when ownership of the home is transferred to you.

     If you purchased a home and lease the land from a builder

     You must be a first-time home buyer at the time possession is transferred to you.

     If you built your own home

     You must be a first-time home buyer on one of these dates (whichever is earlier):

     • The date when you first occupied the home as a place of residence after the construction or substantial renovation began
     • The date when the construction or substantial renovation of the home is substantially completed

   • Neither you, nor your spouse or common-law partner, have previously received a FTHB GST/HST rebate

   • You must meet all of the conditions above to be considered a first-time home buyer. If you are not a first-time home buyer you may be eligible for the GST/HST new housing rebate.

   • Based on your selections above:
     You generally meet the conditions to be considered a first-time home buyer.

     This result is not binding on the CRA

     This conclusion depends on the accuracy of the information you have provided.

2. As a first-time home buyer, you may be eligible if you have done one of the following:
   • You purchased a newly built or substantially renovated home from a builder, including a home on leased land (if the lease is for at least 20 years or gives you the option to buy the land) for use as your primary place of residence
   • You purchased shares in a co-operative housing corporation (co-op) for the purpose of using a unit in a newly built or substantially renovated cooperative housing complex for use as your primary place of residence
   • You constructed or substantially renovated a home (that you were not previously living in) or hired someone else to construct or substantially renovate a home for use as your primary place of residence
   If your newly built or substantially renovated home is a mobile home or a floating home

   If you are an individual who purchased a newly built or substantially renovated mobile home (including a modular home) or floating home for use as your primary place of residence, you may be eligible for a FTHB GST/HST rebate for some of the GST/HST paid.

3. Depending on whether you purchased a home from a builder or you built a home, you must also meet the following criteria:

   If you purchased a home from a builder

   Under the proposed legislation, the FTHB GST/HST rebate would be available if all of the following are true:

   • You meet the eligibility criteria for the existing GST/HST new housing rebate, or would if the maximum purchase price of the home increased from $450,000 to $1.5 million
   • You entered into the agreement of purchase and sale for the home with the builder on or after May 27, 2025, and before 2031
   • The construction or substantial renovation of the home begins before 2031 and is substantially completed before 2036
   • Ownership of the home is transferred to you before 2036
   • You are buying the home for use as your primary place of residence and are the first to occupy the home as a place of residence
   • Neither you, nor your spouse or common-law partner, have previously received a FTHB GST/HST rebate
   If you built your own home

   Under the proposed legislation, the FTHB GST/HST rebate would be available if all of the following are true:

   • You meet the eligibility criteria for the existing GST/HST new housing rebate for owner-built homes, or would if the maximum fair market value of the home increased from $450,000 to $1.5 million
   • The construction or substantial renovation of the home begins on or after May 27, 2025, and before 2031
   • The construction or substantial renovation of the home is substantially completed before 2036
   • The home is being constructed or substantially renovated for use as your primary place of residence
   • You are the first to occupy the home as a primary place of residence and you first occupy the home as a place of residence before 2036
   • Neither you, nor your spouse or common-law partner, have previously received a FTHB GST/HST rebate

   Example of when construction begins

   • An individual purchased bare land on October 15, 2024, with the intention of building a house to be used as their primary place of residence.
   • The individual received the building permit on February 15, 2025, and hired a general contractor to oversee the construction. Excavation began on June 1, 2025.
   • The CRA would consider the construction to have begun at the time the excavation work relating to the residence began. Since the excavation began on June 1, 2025, the construction is considered to have begun on or after May 27, 2025.

Applying for the rebate

The CRA will not process claims for the FTHB GST/HST rebate before the proposed legislation has received Royal Assent.

Homes purchased from a builder, where ownership is transferred before Royal Assent

Individuals who purchase a new or substantially renovated home from a builder and ownership of the home is transferred before Royal Assent is received have 2 steps to complete.

You will need to:

1. Pay the GST/HST to the builder
2. Apply for the FTHB GST/HST rebate directly with the CRA (after the proposed legislation that implements the rebate receives Royal Assent)

Builders cannot credit the FTHB GST/HST rebate to individuals for homes where ownership was transferred before Royal Assent is received.

The builder can credit the existing GST/HST new housing rebate and any provincial new housing rebate that applies.

Updated forms

Updated forms for rebate applications are not yet available.

If the proposed legislation receives Royal Assent, the following forms and guide will be updated to include the FTHB GST/HST rebate:

• Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder
• Form RC7190-WS, GST190 Calculation Worksheet
• Form GST191, GST/HST New Housing Rebate Application for Owner-Built Homes
• Form GST191-WS, Construction Summary Worksheet
• Guide RC4028, GST/HST New Housing Rebate

Related information

The details provided about this rebate are based on proposed legislation that is subject to parliamentary approval and may change.

Refer to the proposed legislation: Bill C-4