Tax Planning
Tax Planning: Leveraging the First-Time Home Buyers’ GST/HST Rebate
How first-time home buyers in Canada can save up to $50,000 off a new or substantially renovated home through a new GST/HST rebate—eligibility, timelines, and tips.
By NomadicTax Research Team • 5-8 min read • April 1, 2026
## What is the First-Time Home Buyers’ (FTHB) GST/HST Rebate?
The First-Time Home Buyers’ GST/HST Rebate is a new federal tax relief measure established under **Bill C-4, the Making Life More Affordable for Canadians Act**. It allows eligible first-time buyers to **recover part or all of the GST (or the federal portion of HST)** paid on a newly built or substantially renovated home. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
Key features include:
- **Full rebate** of GST for homes valued up to $1,000,000.
- **Partial rebate** (linear phase-out) for homes valued between $1,000,000 and $1,500,000.
- No rebate for homes at or above $1,500,000. ([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai))
## Who Qualifies?
Eligibility includes:
- Being a **first-time home buyer** (you or your spouse/common-law partner have not owned a home you occupied as a primary residence in the current year or in the four preceding years). ([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai))
- Being a **Canadian citizen or permanent resident**, aged 18 or older. ([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai))
- **Homes purchased from a builder** with agreement entered after **March 20, 2025**, or **owner-built/ substantially renovated homes** meeting certain construction date conditions. Homes must be substantially completed before **2036**. ([canada.ca](https://www.canada.ca/content/canadasite/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/first-time-buyers-can-save-more-on-new-homes-the-first-time-home-buyers-gst-hst-rebate-is-available-now.html?utm_source=openai))
## How Much You Can Save: Examples
| Home Price | Rebate Amount | Notes |
|---|---|---|
| $950,000 | 100% GST removed (up to approx. $50,000) | Full benefit for homes up to $1,000,000. |
| $1,200,000 | ~$25,000 | Partial rebate (roughly 50%) for homes between $1M–$1.5M. |
| $1,600,000 | $0 | Above threshold; no federal rebate. |
## How to Apply
- **Form GST190**: For new homes purchased from a builder. Builders may credit the rebate at closing. ([canada.ca](https://www.canada.ca/content/canadasite/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/first-time-buyers-can-save-more-on-new-homes-the-first-time-home-buyers-gst-hst-rebate-is-available-now.html?utm_source=openai))
- **Form GST191**: For owner-built or substantially renovated homes. ([canada.ca](https://www.canada.ca/content/canadasite/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/first-time-buyers-can-save-more-on-new-homes-the-first-time-home-buyers-gst-hst-rebate-is-available-now.html?utm_source=openai))
- Time-limit: typically **within 2 years** of taking ownership or finishing construction. Make sure you apply within this period! ([canada.ca](https://www.canada.ca/content/canadasite/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/first-time-buyers-can-save-more-on-new-homes-the-first-time-home-buyers-gst-hst-rebate-is-available-now.html?utm_source=openai))
## What Planners Should Check Ahead of Time
- Review the **agreement date** with the builder or renovation start date to ensure eligibility (after March 20, 2025, before 2031 for owner-built). ([canada.ca](https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html?utm_source=openai))
- Check the home’s **fair market value** to see which bracket (full or partial rebate) applies. \$1 M threshold is crucial.
- Coordinate with your builder or developer to see if they offer to **credit the rebate at closing**, simplifying your cash flow.
- Keep documentation: purchase agreements, construction or completion certificates, invoices for GST/HST.
## Practical Takeaway
If you’re planning to buy your first home or renovate significantly, act now. Homes with agreements entered on or after March 20, 2025 are eligible, but those agreements must close and homes be substantially completed before 2036. For homes priced under \$1,000,000, you could save **all your GST charges**, potentially tens of thousands of dollars. Those in the \$1-\$1.5 million range still benefit via a reduced rate.
Combine this with existing homebuyer plans (RRSP withdrawal, down payment incentives), and proper timing, and this rebate could dramatically reduce the cost of turning a homeowner’s dream into reality. **Plan early, confirm eligibility, and fill the correct forms.**