First-Time Home Buyers'
GST Rebate Calculator 2026
Enter your new home's price to see if you qualify for Canada's new First-Time Home Buyers' GST Rebate, how much of the 5% federal GST you get back, your net GST payable and your total tax saving.
Read the full answer — method, rates and figures
Quick answer: Canada's First-Time Home Buyers' GST Rebate refunds 100% of the 5% federal GST on a new home valued up to $1,000,000 — a maximum of $50,000. Between $1,000,000 and $1,500,000 it phases out on a straight line (rebate = $50,000 × ($1,500,000 − price) ÷ $500,000) and reaches $0 at $1,500,000.
To qualify you must be a first-time buyer (18+, Canadian citizen or permanent resident, primary residence, no home owned by you or your spouse in the year of purchase or prior four years) buying a NEW or substantially-renovated home, with an agreement of purchase and sale dated on or after March 20, 2025 and before January 1, 2031. It is law — enacted via Bill C-4 (Royal Assent March 12, 2026).
Your First-Time Home Buyers' GST Rebate
$47,500
Eligible for the FULL rebate — 100% of the 5% federal GST is refunded.
GST on home (5%)
$47,500.00
FTHB rebate
$47,500.00
Net GST payable
$0.00
Total tax saving: $47,500.00
Full rebate to $1,000,000 (max $50,000); straight-line phase-out to $0 at $1,500,000.
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Your GST rebate
$47,500
GST on home (5%)
$47,500.00
Net GST payable
$0.00
Last updated 17 July 2026. Status: enacted — Bill C-4 (Making Life More Affordable for Canadians Act), Royal Assent 12 March 2026; announced by the Department of Finance 27 May 2025. Sources: Department of Finance Canada; Canada Revenue Agency (First-Time Home Buyers' GST/HST Rebate). Educational estimate only — confirm your eligibility and amounts with the CRA.
Last reviewed 10 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Track my first-home planHow it works
Canada's First-Time Home Buyers' (FTHB) GST Rebate refunds the 5% federal GST — or the federal part of the HST — that you pay on a newly built or substantially-renovated home bought as your primary residence. For a home valued at $1,000,000 or less, the rebate equals 100% of that GST, up to a maximum of $50,000 (5% of $1,000,000). It is designed to remove the federal sales-tax cost of a first new home entirely. The rebate was introduced in Bill C-4, the Making Life More Affordable for Canadians Act, which received Royal Assent on March 12, 2026, after being announced by the Department of Finance on May 27, 2025. It is now in force, not a proposal.
The phase-out formula
Between $1,000,000 and $1,500,000 the maximum rebate shrinks on a straight line and reaches zero at $1,500,000. The formula the government uses is:
rebate = $50,000 × ($1,500,000 − price) ÷ $500,000
So a $1,250,000 home — the mid-point — receives 50% of $50,000 = $25,000, and a $1,400,000 home receives $50,000 × (100,000 ÷ 500,000) = $10,000. At or above $1,500,000 the rebate is $0. Your net GST payable is the 5% GST minus whatever rebate applies, and your total tax saving is simply the rebate itself. This calculator applies that exact math the moment you enter a price.
Who counts as a first-time buyer
You must be at least 18, a Canadian citizen or permanent resident, and occupy the home as your primary residence — and be the first to live in it. Neither you nor your spouse or common-law partner can have lived in a home that either of you owned, anywhere in the world, in the calendar year of purchase or the four preceding calendar years. Only one FTHB rebate is allowed per qualifying home. For a home bought from a builder, the agreement of purchase and sale must be signed on or after March 20, 2025 and before January 1, 2031. Owner-built homes must start construction before 2031 and be substantially completed before 2036.
New homes only — and stacking with other rebates
Because GST is charged on new construction but not on an ordinary resale home, this rebate applies only to new or substantially-renovated homes — bought from a builder, built by you, or built for you. A previously-lived-in resale home carries no federal GST, so there is nothing for the rebate to refund. Importantly, the FTHB GST Rebate is calculated separately from the existing GST/HST New Housing Rebate, and an eligible first-time buyer can claim both, with the FTHB rebate topping up the relief. Provincial new-housing rebates, where they exist, are separate again. Confirm your own eligibility and amounts with the CRA before you file.
How to use this calculator
- Enter the price of the new or substantially-renovated home (or, if you are building it yourself, its fair market value).
- Tell the calculator whether you meet the first-time-buyer conditions — 18+, citizen or permanent resident, primary residence, and no home owned by you or your spouse/common-law partner in the year of purchase or the previous four years.
- Confirm your agreement of purchase and sale is dated on or after March 20, 2025 and before January 1, 2031 (or that owner-built construction falls in the eligible window).
- Read your result: the eligibility verdict, the rebate amount from the verified phase-out formula, the net GST you would still pay after the rebate, and your total tax saving.
❓ Frequently Asked Questions
Who qualifies as a first-time home buyer for the GST rebate?
You must be at least 18, a Canadian citizen or permanent resident, and buying (or building) the home as your primary place of residence. Crucially, neither you nor your spouse or common-law partner can have lived in a home that either of you owned — anywhere in the world — in the calendar year of purchase or in the four preceding calendar years.
You also have to be the first person to occupy the home. Only one FTHB GST rebate can be claimed per qualifying home.
How much is the First-Time Home Buyers' GST Rebate?
The rebate returns 100% of the 5% federal GST (or the federal part of the HST) on a new home valued up to $1,000,000 — a maximum of $50,000. Between $1,000,000 and $1,500,000 the maximum rebate is reduced on a straight-line basis: rebate = $50,000 × ($1,500,000 − price) ÷ $500,000.
For example, a $1.25 million home (the mid-point) gets 50% of $50,000 = $25,000. Homes valued at $1,500,000 or more receive nothing.
What home price qualifies for the full rebate?
New homes priced at $1,000,000 or less qualify for the full rebate — the entire 5% federal GST back, up to $50,000. Above $1,000,000 the rebate phases out and disappears once the price reaches $1,500,000.
The home must be newly constructed or substantially renovated (a resale home that has already been lived in does not qualify). For owner-built homes the threshold is measured against the home's fair market value rather than a purchase price.
When does the First-Time Home Buyers' GST Rebate take effect?
It is law. The rebate was introduced in Bill C-4, the Making Life More Affordable for Canadians Act, which received Royal Assent on March 12, 2026, after first being announced by the Department of Finance on May 27, 2025.
For homes bought from a builder, your agreement of purchase and sale must be signed on or after March 20, 2025 and before January 1, 2031. Owner-built homes must start construction before 2031 and be substantially completed before 2036.
Does the rebate apply to resale (previously-owned) homes?
No. The FTHB GST Rebate only applies to a new or substantially-renovated home — one bought from a builder, built by you, or built for you — because GST is charged on those but not on an ordinary resale home. Used homes purchased from a previous owner are exempt from GST already, so there is no federal GST for this rebate to refund.
If you buy a resale home you would not pay the 5% GST in the first place, and this rebate does not apply.
Can I combine it with the GST/HST New Housing Rebate?
Yes. The existing GST/HST New Housing Rebate (available to any buyer of a qualifying new home, not just first-timers) and this new FTHB GST Rebate are calculated separately, and an eligible first-time buyer can receive both.
The FTHB rebate effectively tops up the relief so that, up to a $1,000,000 home, the full 5% federal GST is recovered. Provincial new-housing rebates, where they exist, are separate again.
The CRA processes each rebate on its own rules and forms.
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Further Reading
Buying your first home? Keep every dollar working.
A $50,000 GST rebate is a huge head start — Richify helps you track your down payment, FHSA and net worth so your first home doesn't stall the rest of your plan.
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