Definition
Purchasing a new house or condo is subject to GST (5%) and QST (9.975%). For a $500,000 house, this would represent approximately $25,000 in taxes. The government offers a partial refund to ease this burden.
**Federal GST rebate (NRRP)**: - New home ≤ $350,000: rebate of 36% of GST paid, max $6,300 - Between $350,000 and $450,000: declining rebate - Home > $450,000: no GST rebate
**Provincial QST rebate**: - New home ≤ $200,000: rebate of 36% of QST - Between $200,000 and $300,000: declining - Above $300,000: no QST rebate (low ceiling)
**Rebate for new rental building**: if the home is purchased for rental (rather than occupied), the rebate is available even without a price ceiling (different conditions).
Note: for most new condos, builders incorporate the rebate into their listed price — verify the contract.