First-Time Home Buyers' GST Rebate
How the federal GST rebate on a newly built home works, with four worked examples from $350,000 to $1.5 million.
If you are buying your first home and it is newly built, you may not have to pay the 5% federal GST on it. The rebate is generous up to $1 million and phases out completely by $1.5 million, so where your price lands matters.
How it works
For a qualifying first-time buyer of a newly built home, the 5% federal GST is rebated based on the home's price.
- 01Up to $1 million. The full GST is removed, up to $50,000 back.
- 02$1 million to $1.5 million. The rebate shrinks on a straight line down to $0.
- 03Over $1.5 million. No rebate; you pay the full GST.
Four examples
The same rules applied at four different prices.
| Example 1 | Example 2 | Example 3 | Example 4 | |
|---|---|---|---|---|
| Home price | $350,000 | $1,000,000 | $1,250,000 | $1,500,000 |
| GST at 5% | $17,500 | $50,000 | $62,500 | $75,000 |
| Rebate factor | 100% | 100% | 50% | 0% |
| GST rebate | −$17,500 | −$50,000 | −$25,000 | $0 |
| Net GST you pay | $0 | $0 | $37,500 | $75,000 |
| You save | $17,500 | $50,000 | $25,000 | $0 |
What the examples show
- 01At $350,000 the home is far below the cap, so the entire GST ($17,500) comes back and you pay no GST.
- 02At $1,000,000 you hit the maximum benefit: the full $50,000 GST is rebated, the largest saving the program allows.
- 03At $1,250,000 you are exactly halfway through the phase-out, so half the maximum applies: $25,000 is rebated and $37,500 in GST remains payable.
- 04At $1,500,000 the phase-out is complete, so there is no rebate and the full $75,000 GST is payable.
How the rebate is calculated
Between $1 million and $1.5 million, the rebate is the maximum $50,000 scaled by how far the price still sits below $1.5 million.
Rebate = $50,000 × ($1.5M − price) ÷ $500,000
At $1,250,000 that works out to $50,000 × $250,000 ÷ $500,000 = $25,000, which is Example 3 above.
This summary is general information only, not tax or legal advice. Confirm your figures with a real estate lawyer or accountant. Program details are current as of July 2026.
Related guides.
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When to register, how often to file, and the credits owners miss.Registering for GST/HST before you have to
Why some businesses register early, and when it backfires.
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