Is the rebate paid at closing or after?

Builders typically pre-credit the rebate on your closing disclosure, so the price you actually pay reflects the net amount. They then claim the rebate from CRA and Revenu Québec on your behalf. Always confirm this with your notary.

What about investors and second-home buyers?

The standard New Housing Rebate doesn't apply if you're buying to rent out or as a secondary residence. You may instead qualify for the New Residential Rental Property Rebate (NRRPR) — same math, different application path. Talk to a tax accountant before closing.

Why does the rebate phase out?

The rebate is designed for accessible housing. Federal: 36% of GST on pre-tax prices up to $350k; phased linearly to $0 at $450k. Quebec: 50% of QST on prices up to $200k; phased to $0 at $300k. Above the upper threshold, you pay the full sticker tax.

What counts as a "substantial renovation"?

CRA's threshold: 90% or more of the existing building's interior must be removed or replaced. Cosmetic work, additions, or partial renovations don't qualify. The rebate exists for builders converting non-residential buildings or doing gut jobs that produce essentially a new dwelling.

Do I need to apply, or is it automatic?

If the builder credits it on your closing disclosure (typical), they apply on your behalf. If you bought a pre-built home from someone other than the builder, or you're claiming the NRRPR as an investor, you file Form GST190 (federal) and VD-403.6 (Quebec) within two years.

Are GST and QST applied to used residential homes?

No. GST and QST only apply to new or substantially renovated homes sold by a builder, or to commercial property. Used residential resales are exempt. That's why this calculator only matters for builder-direct purchases.

Does the rebate also apply to land purchases?

If the land is sold along with the new home as a single supply, yes — the tax and rebate apply to the bundled price. If you buy bare land separately, GST/QST applies but the New Housing Rebate doesn't until you build.

New build · Quebec

GST, QST, and how much you get back.

New-construction homes (and substantial renovations) sold by a builder owe GST and QST. Owner-occupiers can claim the federal and provincial New Housing Rebates — both phase out as the price climbs.

● Updated November 2025

Assumptions

Pre-tax purchase price

Use the price before GST and QST are added. The builder usually quotes both.

Results

Total rebates

$1,575

All-in price

$487,069

GST (5%)$21,250

Federal rebate− $1,575

Net GST$19,675

QST (9.975%)$42,394

Quebec rebate− $0

Net QST$42,394

Total taxes$63,644

Foncier the whole deal

This number is one of seventy.

Cap rate is a start. The full Foncier analyzer adds DSCR, IRR, ten-year cashflow projections, scenarios, side-by-side compare, and live community rent comps — for free, on your first three deals.

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How this is calculated

Federal rebate is 36% of GST paid (max $6,300) on pre-tax prices up to $350,000, then phased out linearly to $0 at $450,000. Quebec rebate is 50% of QST paid (max $9,975) up to $200,000, phased out to $0 at $300,000. Eligibility requires owner-occupation as a primary residence; investors and second-home buyers face different rules.

Worked examples

GST/QST and rebates on real new-build prices.

New condo · $325,000 pre-tax

$10,150 net tax

On $325,000 pre-tax: $16,250 GST + $32,419 QST = $48,669 in tax. Federal rebate gives back $5,850 (36% of GST), Quebec rebate gives back $0 (price above $300k phase-out). Net taxes paid: $42,819. All-in price: $367,819.

GST$16,250

QST$32,419

Fed. rebate$5,850

QC rebate$0

New townhouse · $475,000 pre-tax

$71,131 net tax

On $475,000 pre-tax: $23,750 GST + $47,381 QST = $71,131 in tax. Both rebates fully phased out at this price (federal at $450k, Quebec at $300k). All-in price: $546,131.

GST$23,750

QST$47,381

Fed. rebate$0

QC rebate$0

GST / QST questions

About new-build sales tax in Quebec.

The buyer of a new or substantially renovated home, where the home is intended as your or a close relative's primary place of residence. Investors buying to rent out generally cannot claim it (but may qualify for the New Residential Rental Property Rebate instead).

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