Canada’s GST Rebate for First-Time Home Buyers: 2026 Rules Explained

First-time home buyers in Canada have a real, federally legislated GST break in 2026: the First-Time Home Buyers’ (FTHB) GST/HST Rebate. The measure was first announced in March 2025, included in Bill C-4, and received Royal Assent on March 12, 2026 — so as of today it is fully in force and the Canada Revenue Agency (CRA) is accepting applications. Here is what actually qualifies in 2026, how much you can save, and how it differs from the older GST/HST New Housing Rebate that still exists alongside it.

What Is the FTHB GST/HST Rebate?

The FTHB rebate removes the federal 5% GST (or the federal portion of the HST) on new homes bought by first-time buyers. It applies to:

• New homes purchased from a builder
• Shares in a co-operative housing corporation, where the co-op paid GST/HST on the new build
• Owner-built homes, where the buyer paid GST/HST on construction costs

How Much Can You Save?

• Homes up to $1,000,000: 100% of the GST is rebated — up to $50,000 in savings.
• Homes between $1,000,000 and $1,500,000: the rebate phases out on a straight-line basis as price rises toward $1.5 million.
• Homes over $1,500,000: no rebate applies.

Who Qualifies

• You (and your spouse or common-law partner) must not have owned and lived in a home either of you owned in the current year or the previous four calendar years.
• The home must become your primary place of residence, and you must be the first person to occupy it after construction or substantial renovation is complete.
• Neither you nor your spouse/common-law partner can have claimed the FTHB rebate before — it is a one-time benefit per person.
• Timing: your purchase agreement must have been signed on or after March 20, 2025, and before 2031, with construction substantially completed before 2036.

How This Differs From the Older GST/HST New Housing Rebate

Canada still has its long-standing GST/HST New Housing Rebate, unchanged in 2026: it covers homes valued up to $350,000 in full (a maximum of roughly $6,300), phasing out completely at $450,000, and it is open to any qualifying buyer, not just first-timers. The new FTHB rebate is much larger and is aimed squarely at the realities of today’s home prices in cities like Toronto and Vancouver, where a typical new build can run well past $450,000. In some cases the two rebates can be combined with provincial new-housing rebates (for example, Ontario’s provincial HST rebate of up to $24,000), so it is worth checking your specific province’s rules or speaking with a tax professional before you file.

How to Apply

1. Confirm you meet the first-time buyer and primary-residence criteria above.
2. Keep your purchase agreement, proof of occupancy, and (for owner-built homes) construction invoices.
3. File Form GST190 (builder-purchased homes) or GST191 (owner-built homes) with the CRA, plus any applicable provincial rebate form.
4. Submit within the CRA’s filing deadline for your rebate type — generally within two years of the closing date or substantial completion.

Processing can take several months, so file as soon as you are eligible and keep your records for at least six years in case the CRA requests verification.

Why It Matters for Newcomers and Permanent Residents

If you are settling in Canada as a new permanent resident, this rebate applies to you the same way it applies to anyone else meeting the criteria — permanent residency, not citizenship, is what matters for tax residency purposes. If you are still working through your immigration pathway, see our guide to becoming a permanent resident in Canada in 2026 for the routes available to you, and our newcomer health insurance guide for other settlement essentials while you save toward a home purchase.

Frequently Asked Questions

Is the FTHB GST rebate the same as the GST/HST credit?

No. This is a one-time rebate tied to buying a new home. The quarterly GST/HST credit is a separate, ongoing tax-free payment for low- and modest-income individuals and has nothing to do with home purchases.

Can permanent residents and newcomers claim this rebate?

Yes, as long as you meet the first-time buyer, primary-residence, and timing criteria above. There is no citizenship requirement.

What if my new home costs more than $1.5 million?

You will not receive any FTHB rebate, though you may still qualify for other provincial programs depending on where you buy.

Can I combine this with the Home Buyers’ Plan (RRSP withdrawal)?

Yes, the FTHB GST rebate can be combined with other federal and provincial first-time buyer programs, including RRSP-based plans. Confirm the current rules with a tax advisor since program details can change.

Where do I apply?

Through the CRA, using Form GST190 or GST191 depending on whether you bought from a builder or built your own home. Details are available at canada.ca.