Independent guide · updated September 2026

GST/HST on a new home: the rate by province, and the three rebates

Which tax applies to new construction in each province, what the new federal first-time buyer rebate (Bill C-4, 2026) really changes, and the full arithmetic on a $500,000 purchase.

In short

Resale homes are not taxed in Canada — GST/HST only applies to NEW homes (and substantial renovations). On a new home, the federal government charges 5% everywhere; on top of that come the provincial HST portion in Ontario (8%), Nova Scotia (9% since April 2025) and New Brunswick (10%), and the QST (9.975%) in Quebec. Since Bill C-4 (royal assent March 12, 2026), a FIRST-TIME buyer recovers 100% of the GST on a new home up to $1M — up to $50,000 — with a linear phase-out between $1M and $1.5M. The provincial portions remain payable: on a $500,000 new home, an eligible first-time buyer pays $0 tax in Alberta, but still $41,000 in Ontario after rebates.

A $500,000 new home: the tax, province by province

Pre-tax price. "Regular buyer" = no first-time buyer rebate; "eligible first-time buyer" = Bill C-4 GST rebate applied (100% under $1M). The classic federal rebate (RC4028) is nil at this price (eliminated from $450,000).

Province	Tax on new homes	Gross tax	Regular buyer*	Eligible first-time buyer
Alberta, Saskatchewan, Manitoba, BC	GST 5%	$25,000	$25,000	$0
Quebec	GST 5% + QST 9.975%	$74,875	$74,875	$49,875 (QST still payable)
Ontario	HST 13%	$65,000	$41,000 (Ontario rebate −$24,000)	$16,000
Nova Scotia	HST 14%	$70,000	$67,000 (NS rebate −$3,000)	$42,000
New Brunswick	HST 15%	$75,000	$75,000	$50,000

* Provincial rebates from Ontario (75% of the 8% portion, max $24,000, no price cap) and Nova Scotia (first-time buyers only: 18.75% of the provincial portion, max $3,000) are included where they apply. Quebec's QST rebate is nil at this price (eliminated from $300,000). Builders often advertise "tax-included" prices: ask for the written breakdown.

Calculator

The tax on YOUR new home

Pre-tax price + province + your status: the gross tax, every rebate you are entitled to (the calculator picks the better federal rebate, since the two cannot be combined), and the net payable.

Pre-tax price $

Province

Eligible first-time buyer (Bill C-4)

Gross tax—

Federal rebate —

Provincial rebate—

Net payable—

Statutory schedules only, as sourced in this dossier: GST 5%; QST 9.975%; provincial HST portions 8% (Ont.), 9% (N.S., since April 2025), 10% (N.B.). C-4 rebate: 100% of GST up to $1M (max $50,000), linear phase-out to zero at $1.5M — not combinable with the classic rebate (36% of GST, max $6,300, full below $350,000, nil from $450,000). Ontario: 75% of the provincial portion, max $24,000, no price cap. Nova Scotia (first-time buyers): 18.75% of the provincial portion, max $3,000. Quebec (Revenu Québec): 50% of QST, max $9,975, full up to $200,000, eliminated at $300,000. Full eligibility conditions (dates, first occupant, citizenship) are in the sections below — the calculator assumes you meet them.

New homes are taxed, resales are not

The rule that settles 80% of cases: a residential resale is exempt from GST/HST — any province, any price. The tax only applies to a new home bought from a builder, a substantial renovation (90% or more of the building redone) or an owner-built home. That is why "the taxes" never show up in a resale calculation — see instead closing costs by province, where land transfer tax plays that role.

On new construction, the federal government charges 5% everywhere. The difference between provinces is the provincial portion: nothing in Alberta, Saskatchewan, Manitoba and BC (PST does not apply to real property), 8% in Ontario, 9% in Nova Scotia (its HST dropped from 15% to 14% on April 1, 2025), 10% in New Brunswick, and Quebec's 9.975% QST.

The first-time buyer rebate (Bill C-4, 2026) — up to $50,000

The biggest new-home tax change in a generation. Bill C-4 received royal assent on March 12, 2026: a first-time buyer recovers 100% of the GST on a new home up to $1M, with a linear phase-out to zero at $1.5M (e.g. at $1.25M, 50% of the GST — up to $25,000). Maximum: $50,000.

The conditions, as enacted: purchase agreement entered into on or after March 20, 2025 (the law widened the initially proposed May 27, 2025 date) and before 2031; construction begun before 2031 and substantially completed before 2036; the buyer must be the first occupant, be 18 or older, be a citizen or permanent resident, and not have owned a home (nor their spouse) in the current year or the four preceding years. An anti-avoidance rule blocks agreements cancelled and re-signed to qualify. Not stackable with the classic federal rebate: you claim one or the other.

The rebates that already existed — and why they now pay almost nothing

The classic federal rebate (RC4028) returns 36% of the GST, capped at $6,300 — but it is only full below $350,000 and disappears at $450,000. Those thresholds, set in 1991, were never indexed: at the Canadian average price (about $695,000 in April 2026), it is worth zero. Quebec's QST rebate eroded the same way (maximum $9,975, gone at $300,000).

The counter-example is Ontario: its rebate of 75% of the provincial portion, capped at $24,000, has no price ceiling — it works in full on a million-dollar home. That is why the Ontario bill in the table drops from $65,000 to $41,000 even without first-time buyer status. Nova Scotia gives first-time buyers 18.75% of its provincial portion, capped at $3,000.

Frequently asked questions

Is there GST or HST on a used (resale) home?

No. A residential resale is exempt from GST/HST everywhere in Canada. The tax only applies to new homes, substantial renovations (90%+) and owner-built homes. On a resale, the comparable cost is land transfer tax, which runs from ~$0 in Alberta to over $12,000 in Toronto on $500,000.

Who qualifies for the new first-time buyer GST rebate?

You need: a purchase agreement entered into on or after March 20, 2025 and before 2031 on a new home you will be the first to occupy; to be 18 or older; a Canadian citizen or permanent resident; and not to have owned a home (nor your spouse) in the current year or the four preceding years. The rebate is 100% of the GST up to $1M (max $50,000), phased out linearly to zero at $1.5M.

Does the first-time buyer rebate cover the provincial HST portion or the QST?

No — it only refunds the 5% federal portion. The provincial portions follow their own rules: Ontario refunds 75% of its portion (max $24,000, no price cap, first-time buyer or not); Nova Scotia refunds first-time buyers 18.75% of its portion (max $3,000); Quebec limits its QST rebate to homes under $300,000; New Brunswick offers no equivalent general rebate.

Why does the classic federal rebate pay nothing in big cities?

Because its thresholds date from 1991 and were never indexed: full below $350,000, nil from $450,000. At the Canadian average price of about $695,000 (April 2026), it is worth zero. That is exactly the gap Bill C-4 closes — but only for first-time buyers, and only on the GST.

Does the builder's advertised price include the taxes?

Often, yes — many builders advertise a "GST/HST included, rebate assigned to builder" price. In that structure you assign your rebate to the builder in exchange for a net price. Demand the written breakdown: pre-tax price, applicable tax, rebates and who pockets them. Your lawyer or notary should verify it before you sign.

Sources

Structuring a new-build purchase?

Payotte names a single verified lawyer or notary per sector — selected on public data, never on payment. They are the one who verifies taxes and rebates at signing.

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