Finding information on the GST/HST new housing rebate can be confusing for homebuyers.
This guide will clearly explain everything you need to know to determine your eligibility and calculate your potential rebate amount when purchasing or building a new home.
You'll learn about the rebate criteria, how rebates vary by province, using the rebate calculator, the application process, required documents, common mistakes, and next steps to receive your rebate.
Introduction to the GST191 GST/HST New Housing Rebate
The GST191 GST/HST New Housing Rebate allows homeowners who have purchased or built a new home to get a portion of the GST or HST paid refunded by the Canada Revenue Agency (CRA). This rebate was created to relieve some of the tax burden for Canadian home buyers.
Understanding the GST/HST New Housing Rebate
The GST/HST New Housing Rebate applies to the 5% Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) levied on newly constructed or substantially renovated residential properties. The rebate allows new homeowners to recover some of these taxes paid during the home buying process.
The purpose of this rebate is to make homeownership more affordable for Canadians. Since the GST and HST taxes can add substantial costs to purchasing a new house, the government offers this rebate to relieve buyers of some of that tax burden.
Eligibility Requirements for the GST191 Rebate
To qualify for the GST191 rebate, you must meet all of the following criteria:
- You purchased or built a new house or condo for use as your primary place of residence
- The purchase was made from a builder/constructor
- You paid the GST/HST on the purchase
- The fair market value of the house is less than $450,000
- You or a relative will live in the property as a primary place of residence
Additional eligibility factors may apply for rental properties, secondary residences, and other special cases. It's important to review the full requirements before claiming the rebate.
Calculating the Rebate Amount: An Overview
The amount of the GST191 rebate will depend on the purchase price of the new home, the applicable GST/HST rate for your province, and whether it will serve as your primary residence. Generally, the rebate will be 36% of the GST or 75% of the HST paid, up to a maximum of $6,300.
The CRA provides a GST191 rebate calculator to help you estimate the amount based on your specific home purchase details. When you submit the rebate application, the CRA will verify the details and issue a refund check if approved.
What is the GST rebate for new housing in BC?
The GST New Housing Rebate is a program by the Canada Revenue Agency (CRA) that allows homebuyers in Canada to get a partial refund of the Goods and Services Tax (GST) paid on the purchase of a new home priced up to $450,000.
Here are some key things to know about the GST New Housing Rebate in BC:
- The basic GST New Housing Rebate is 36% of the 5% GST paid on homes priced up to $350,000
- For new homes priced between $350,000 and $450,000, the rebate amount is reduced
- To qualify, the property must be newly constructed or substantially renovated residential property
- You must intend to use the property as your primary place of residence
- You must either be an individual purchasing the home for personal use or a qualifying first-time home buyer
- There are time limits - you must apply for the rebate within 2 years of taking ownership of the property
To calculate the estimated rebate amount for a new home in BC priced under $450,000, you can use the GST191-WS rebate calculator form.
To apply for the new housing rebate, complete Form GST191 and submit it to the CRA along with supporting documentation.
What is the GST rebate for housing in Ontario?
The GST/HST New Housing Rebate allows homebuyers in Ontario to get a partial refund on the GST/HST paid when purchasing a new home priced up to $450,000. This rebate was introduced by the Canada Revenue Agency (CRA) to provide financial relief for buyers of new residential properties.
To be eligible for the GST191 rebate in Ontario, the property must:
- Be newly constructed or substantially renovated
- Have a sale price of $450,000 or less
- Be intended to be used as your primary place of residence
The exact rebate amount will depend on the purchase price and provincial portion of the HST. Generally, the rebate will be 36% of the federal portion (5%) of the HST for homes priced up to $350,000. For homes between $350,000 and $450,000, the rebate percentage gradually decreases.
For example, if you purchased a new home in Ontario for $400,000 plus the 13% HST in 2023, your estimated GST rebate would be:
- Purchase Price: $400,000
- 13% HST paid: $52,000
- 36% of the 5% federal portion of HST: $9,360
So in this case, you could get back $9,360 by applying for the GST191 rebate in Ontario.
To claim the rebate, you must fill out Form GST191-WS and provide supporting documents within 2 years of taking possession of the home. So if you qualify based on the eligibility criteria, make sure to apply for this generous rebate offered by the CRA.
How much is the HST rebate on new homes in Ontario?
The maximum Ontario new housing rebate amount for owner-built houses depends on whether you paid the HST on your purchase of the land:
- If you paid the HST on the purchase of the land, the rebate is limited to a maximum of $24,000.
- If you did not pay the HST on the purchase of the land, the rebate is limited to a maximum of $16,080.
To be eligible for the Ontario new housing rebate when purchasing from a builder, the following criteria must be met:
- The home must be a newly constructed or substantially renovated home.
- You must be buying the home for use as your primary place of residence or that of a relation.
- Ownership and possession of the home must be transferred to you.
To claim the rebate, you must complete and submit Form GST191-WS along with the required supporting documents to the CRA within 2 years of possession of the home. The rebate amount will be determined based on the purchase price, HST paid, and eligibility criteria.
Consult the HST rebate calculator to estimate the amount of the new housing rebate you may be eligible to receive when purchasing a newly built home in Ontario.
What is the provincial new housing rebate in Saskatchewan?
The Provincial Sales Tax (PST) Rebate for New Home Construction provides a rebate of up to 42% of the PST paid on the purchase of a new, previously unoccupied home (newly constructed home) in Saskatchewan. This rebate is designed to make home ownership more affordable for Saskatchewan residents.
To be eligible for the rebate, the new home must:
- Be newly constructed or substantially renovated
- Be intended to be used as a primary place of residence
- Have a fair market value of $450,000 or less
- Have not been previously occupied as a place of residence
The amount of the rebate is calculated based on the fair market value of the new home:
- Up to $350,000 - 42% rebate of the PST paid
- $350,001 to $450,000 - Rebate is reduced based on a formula
To apply for the rebate, homeowners must submit a GST191-WS Provincial Sales Tax New Housing Rebate Application along with supporting documentation within 6 months of taking possession of the new home.
This rebate makes home ownership more accessible for Saskatchewan residents by reducing the taxes paid on newly constructed homes. The rebate amount can provide substantial savings, especially for homes valued under $350,000.
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Eligibility Criteria for the GST/HST New Housing Rebate
This section outlines the key eligibility requirements to qualify for the GST191 new housing rebate and the associated Ontario rebate.
Defining Primary Residence Eligibility
To qualify for the GST191 rebate, the new home must be intended for use as your primary place of residence. This means:
- You must occupy the home as your principal residence within one year of taking ownership.
- The address of the new home must match the address listed on your income tax returns and government ID.
If the home will not serve as your primary residence, you do not qualify for the new housing rebate.
Price Thresholds and Rebate Limits
There are maximum price thresholds on new homes to qualify for the GST191 rebate:
- Up to $450,000 purchase price: Full rebate amount
- $450,001 to $500,000: Partial rebate amount calculated on sliding scale
- Over $500,000 purchase price: No rebate available
Additionally, there are maximum rebate amounts depending on the applicable GST/HST rate in your province. For example, the maximum 2023 rebate amount in Ontario is $24,000.
Special Considerations for Ontario New Housing Rebate
For new homes purchased in Ontario, there is an additional provincial rebate available on top of the federal GST191 rebate. The eligibility rules are similar with a few key differences:
- No requirement for the home to serve as primary residence
- Maximum purchase price threshold is $400,000
- Maximum rebate amount is $24,000 for 2023
Purchased from a Builder: What You Need to Know
If you purchase a newly constructed home directly from a builder, you must receive written confirmation from the builder indicating the home qualifies for the new housing rebates. The builder typically handles the rebate claims and payments on your behalf in this scenario.
Calculating Your GST/HST Rebate Amount for 2023
Guiding readers through the process of determining the rebate amount they can expect to receive in 2023.
Navigating the HST Rebate Calculator
The CRA provides an HST rebate calculator to help estimate the amount of the GST/HST new housing rebate you may be eligible to receive when purchasing a new home.
To use the calculator:
- Enter your province and the purchase price of the new home (excluding GST/HST)
- Select whether the home is purchased from a builder or if it is self-built
- Enter the expected occupancy date
- Enter the rate of GST/HST applicable in your province
The calculator will then provide an estimate of the maximum rebate amount you can claim. Print or save the calculation for your records.
Understanding the GST191-WS Calculation Worksheet
The GST191-WS worksheet allows you to manually calculate your GST/HST new housing rebate amount.
To complete the form:
- Enter the purchase price of the home excluding GST/HST
- Calculate the GST/HST paid on the purchase
- Determine the rebate rate based on province
- Multiply the purchase price by the rebate rate percentage
- Enter any provincial new housing rebates received
- Subtract the provincial rebate to determine the federal rebate amount
Follow the detailed instructions on the form to calculate accurately.
Manual Calculation: Step-by-Step Guide
You can manually calculate your GST/HST new housing rebate without the rebate calculator or worksheet by following these steps:
- Determine the GST/HST rate for your province. For example, Ontario's HST rate is 13%.
- Calculate the GST/HST paid on the purchase price. For a $400,000 home, 13% HST equals $52,000.
- Check the rebate rate - typically 36% to 75% based on province. Ontario's is 75%.
- Multiply the HST paid by the rebate percentage. $52,000 HST x 75% = $39,000 potential rebate.
- Subtract any provincial new housing rebates received to determine the federal GST rebate amount.
Following this manual calculation method allows you to estimate the rebate without assistance.
Adjusting for Provincial Variations in HST
The HST rate varies by province, ranging from 13% in Ontario to 15% in the Atlantic provinces. The rebate percentage also differs across the country from 36% to 75% of the HST paid.
When calculating your GST/HST new housing rebate manually, be sure to use the accurate rates for your particular province. The higher the HST rate, the more potential rebate, making it important to use the correct provincial rates.
Double check the rates each year, as provinces can adjust HST/rebate percentages annually. Using the proper rate avoids errors and ensures maximum accuracy in your GST/HST new housing rebate estimate.
The GST191 Rebate Application Process
Gathering Required Documentation
To apply for the GST191 rebate, you will need to gather the following documents:
- Purchase agreement or deed for the new home
- GST/HST account statement showing the tax paid on the purchase
- Receipts for any GST/HST paid for building materials or services
- Floor plans of the new home
- Statement of adjustments for closing costs
Having these documents ready will ensure your rebate application includes all required information.
Completing the GST191 Rebate Form
When filling out the GST191 form:
- Enter your contact details and information about the new home
- Calculate the rebate amount based on the tax paid and rebate rate
- Attach supporting documentation like receipts and statements
- Sign and date the completed form
Following the form instructions carefully will help avoid processing delays.
Submitting the Rebate Application
To submit your GST191 rebate application:
- Make copies of all documents for your records
- Mail the completed form and original documentation to your Tax Centre
- Expect 4-6 weeks for processing once received
Submitting accurately and completely will smooth the approval process.
Common Mistakes to Avoid in the Application
Some common errors to avoid on your GST191 rebate application:
- Forgetting required supporting documents like deeds or receipts
- Errors in address or contact details that delay communication
- Calculation errors determining the rebate amount
- Illegible writing or missing information on the form
Double checking for mistakes before submitting can prevent lengthy delays.
After Submitting the GST191 Rebate Application
Tracking Your Rebate Application Status
After submitting your GST191 rebate application, you can track its status by logging into your CRA My Account. Under "View mail," you will see updates on your application status. You can also call the CRA at 1-800-959-8281 to speak with an agent about the status.
Some key statuses to watch for:
- Received - The CRA has your application and will begin processing it
- In Progress - Your application is being reviewed
- Missing information - The CRA requires additional documents from you before final approval
- Approved - Congrats! Your rebate has been approved and will be issued shortly
Checking your My Account regularly allows you to stay updated on your application status.
Understanding the CRA's Processing Timeline
The CRA aims to process GST191 rebate applications within 8 weeks. However, it may take longer during peak tax seasons.
Here is a general timeline of what to expect:
- 2 weeks - Initial review of your application
- 4 weeks - Verification of eligibility and documents
- 6-8 weeks - Calculation of rebate amount and approval
- 8+ weeks - Issuing of rebate cheque or direct deposit
If it has been over 8 weeks with no update, you may want to call the CRA to check if any further information is needed from you.
Receiving and Verifying the Rebate Amount
Once approved, you will receive your GST191 rebate either as a cheque in the mail or through direct deposit if you signed up.
When you get the rebate, verify that the amount matches your expected calculation. Use the GST/HST New Housing Rebate Calculator to double check.
If the amount is lower than expected, contact the CRA to determine why there is a discrepancy. Make sure to have your rebate approval letter and expected calculation on hand when you call.
Addressing Discrepancies or Delays
If there are any issues with your GST191 rebate application, such as incorrect rebate amount, missing payments, or delays, call the CRA at 1-800-959-8281.
Some tips when calling:
- Note your application ID and dates submitted
- Clearly explain the issue you are facing
- Have documents ready such as approval letters, receipts, forms
- Take notes on next steps based on the CRA agent's guidance
Getting on the phone with a CRA agent is the quickest way to address any rebate issues and get them resolved. Be persistent and keep notes until your rebate situation gets fixed.
Conclusion: Maximizing Your GST/HST New Housing Rebate
Summarizing the critical points to remember when applying for the GST191 rebate and ensuring you receive the maximum amount possible.
Reviewing Eligibility and Rebate Amounts
To receive the full GST/HST New Housing Rebate, it is critical to:
- Meet all eligibility criteria, including:
- The home must be newly constructed or substantially renovated
- You must be buying the home from the builder/contractor or as an assignment sale
- The home must be intended as your primary place of residence
- The purchase price must be less than $450,000
- Correctly calculate the rebate amount based on the purchase price and applicable tax rate in your province. Rebates can be as high as $24,000.
- Submit the GST191 form and all required documentation within 2 years of possession date.
Carefully reviewing these factors will ensure you qualify for the maximum rebate possible.
Final Checklist for a Successful Rebate Application
Before submitting your GST191 rebate application, verify:
- All sections of the form are fully completed
- Supporting documents like purchase agreements and occupancy forms are included
- Names and details match on all documents
- Calculations of rebate amounts are double checked
Following this checklist reduces errors and speeds up processing and receipt of your rebate.
Next Steps After Receiving Your Rebate
Once you receive your GST/HST New Housing Rebate, be sure to:
- Set aside any tax owing if you rent out the property within 1 year of possession
- Save rebate funds for closing costs or home repairs
- Invest in improvements that could increase your home value
Carefully planning usage of rebate funds can provide long-term financial benefits as a new homeowner.
