Tax
New Home GST Rebate
Definition
A Canadian tax relief program (Bill C-4, 2026) providing first-time homebuyers with a full or partial rebate of the 5% federal GST on new builds up to $1.5 million.
Key Takeaways
- Rebates up to 100% of the 5% federal GST for eligible first-time home buyers.
- Applies to new builds priced up to $1.5 million, with full savings of $50,000 for homes under $1 million.
- Phases out linearly between $1,000,000 and $1,500,000.
Detailed Explanation
The First-Time Home Buyers' GST Rebate (enacted under Bill C-4) eliminates the 5% federal Goods and Services Tax (GST) for first-time buyers on newly constructed or substantially renovated homes priced up to $1,000,000, saving them up to $50,000. For homes priced between $1,000,000 and $1,500,000, the rebate phases out on a linear scale, reaching $0 at $1,500,000. The rebate does not apply to resale homes and requires the property to be the buyer's primary place of residence.
Real-World Example If Mark and Chloe buy a newly built condo in Vancouver for $950,000 as first-time buyers, the standard 5% GST would be $47,500. Under Bill C-4, they qualify for a 100% rebate, saving the entire $47,500 on closing. If they buy a home for $1,250,000, they are in the phase-out range and receive a 50% rebate, saving $25,000.
See Also:Home Buyers' Plan (HBP)•TFSA•FHSA