What is an HST Rebate?
Under the GST/HST system, an HST rebate allows taxpayers to recover amounts paid in error or receive specific financial relief. One of the most common rebates is the HST New Home Rebate, designed to help homebuyers save on taxes when purchasing a new or substantially renovated home.
What is the HST New Home Rebate?
The HST New Housing Rebate (also known as the HST new home rebate) is available to individuals who:
- Purchase a newly built home from a builder
- Buy a substantially renovated home
- Hire a builder to construct a home on their existing property
This rebate has two components:
- Federal HST Rebate (5%) – Available for homes priced up to $450,000, with a clawback for homes exceeding this price.
- Provincial HST Rebate (8%) – In Ontario, the HST New Home Rebate applies to the provincial portion of HST and can be up to $24,000, with no clawback.
Can I Get an HST Rebate for a Rental Property?
Yes! Ontario offers an HST Rental Rebate for investment properties used as rental units. This rebate can provide savings of up to $24,000, helping landlords recover some of the taxes paid on new rental properties.
HST New Home Rebate Application Deadline
Applying for the HST New Housing Rebate must be done within two years of:
- The purchase date OR
- The occupancy date
Understanding what qualifies as an occupancy date can be complex, so it’s important to ensure you apply within the correct timeframe.
Can the CRA Deny My HST New Home Rebate?
Yes. The Canada Revenue Agency (CRA) has been actively reviewing and denying HST rebate claims, particularly the $24,000 rebate in Ontario. Many homeowners and investors receive a Notice of (Re)Assessment stating their claim has been rejected, often with interest charges on outstanding amounts.
Need Help with Your HST Rebate? Contact Us!
If your HST New Home Rebate has been denied or if you need assistance with your claim, our tax experts can help. Contact Perfect Accounting today at (416) 463-3330 or email us at info@perfectaccounting.ca to discuss your situation.