Tax season is officially upon us, and some taxpayers in Canada could be eligible to receive a pretty big rebate this year.
If you purchased a home in Canada for the first time, you may be eligible to receive a tax rebate worth thousands. The new first-time homebuyers’ (FTHB) GST/HST rebate is designed to make homes more affordable by offering a full or partial tax refund of the GST (or the federal part of the HST) paid on newly constructed or substantially renovated homes.
And depending on eligibility, that rebate could be worth up to $50,000. The Canada Revenue Agency (CRA) said it’s now accepting applications, so eligible first-time homebuyers should apply before the deadline.
Are you eligible?
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If you just bought your first home, the new rebate could make a big difference.
The rebate program eliminates the GST (or the federal portion of the HST) on new homes priced up to $1 million. If you bought a home valued between $1 million and $1.5 million, you can get some relief by getting a reduced amount of the tax you have to pay.
So what happens if you purchased your home from a builder?
“Builders can credit the FTHB GST/HST rebate in the same manner as the existing GST/HST new housing rebate when ownership of the home is transferred to you,” states the CRA. “This means builders are able to credit the rebate amount to you, against the total amount payable for your home.”
If not, you can apply online by logging on to your CRA account. Canadians who also build their first homes can apply for the rebate online.
When is the deadline?
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The agency is now working to start processing applications, but make sure to take note of the deadline so you don’t miss out.
If you signed a purchase agreement between March 20, 2025, and May 26, 2025, you have up to two years from the date you take ownership of the home to apply for the rebate. Similarly, if you built your own home, you have two years from the time you finished construction to apply.
Visit the CRA website to learn more about eligibility and the application process. You can also find out about all the other ways that Canadian homeowners can get tax relief this season.