Compliance
Compliance Essentials: New GST/HST Rebate Rules for First-Time Home Buyers & Trust Reporting
Understand the new GST/HST rebate for first-time home buyers and updates to trust reporting requirements for tax year 2025—key for both individuals entering real estate and trustees.
By NomadicTax Research Team • 5-8 min read • May 22, 2026
## GST/HST Rebate Changes for First-Time Home Buyers
In March 2026, Bill C-4 received Royal Assent, introducing a GST/HST rebate for first-time buyers of new homes. Homes valued up to $1 million are now **GST-free**, and those between $1 million and $1.5 million will benefit from a **reduced GST rate**. The agreement must be entered into between **March 20, 2025**, and **before 2031**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/03/legislation-to-make-life-more-affordable-receives-royal-assent.html?utm_source=openai))
### What you must do if applying
- Ensure your purchase agreement (and construction, if applicable) falls within the effective dates.
- Get documentation of your status as a first-time home buyer—this may involve declarations and proof you have not owned a principal residence in a previous period.
- When filing your GST/HST rebate claim, use the updated forms from Canada Revenue Agency related to Bill C-4; documentation will include purchase sale agreements or contracts.
## Trust Reporting Requirement Updates for 2025 Tax Year
Canada’s 2026 tax tips note important updates to trust reporting for the 2025 taxation year. Trustees must now follow new disclosure and filing rules aligning with legislative consultations initiated in early 2026. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026.html?utm_source=openai))
### Key compliance actions for trustees
- Identify all trusts you administer and ensure you understand new reporting triggers—e.g., if small private trusts have increased obligations.
- Ensure financial statements, beneficiary identities, income distributions, and trust assets are properly recorded.
- Consider early filing to avoid penalties. Canada Revenue Agency emphasizes simplified or automatic returns for simple situations, but trusts often have complex reporting.
## Practical Example
- *First-time home buyer:* Jane signs a purchase agreement on a newly built home worth $1.2 million on April 2025. She applies under the rebate scheme, reducing GST component—effectively saving thousands.
- *Trust compliance:* A trust created for family estate management must disclose all beneficiaries, include accurate balance sheets, file the trust tax return by its deadline, and use updated CRA guidance on 2025 year changes.
## Action Steps for Individuals and Trustees Now
1. Review existing or pending purchase agreements to see if you qualify for the new GST/HST rebate.
2. Collect necessary documentation: proof of first-time status, contracts, receipts tied to GST/HST paid.
3. For trustees: stay up to date on draft proposals and technical amendments related to trust and income tax laws—these may affect your reporting style.
4. Engage a tax professional early—because trust compliance errors can lead to costly penalties.