Harmonized Sales Tax - Ontario New Residential Rental Property Rebate
GST/HST Info Sheet GI-093
June 2026
This version replaces the one dated July 2010. This info sheet has been updated to reflect current information.
On March 25, 2026, the Government of Ontario announced a proposed temporary 100% Ontario new residential rental property rebate for a one-year period, from April 1, 2026 to March 31, 2027 as part of the 2026 Ontario Budget. This publication will be updated as additional details regarding the proposed measure become available.
This info sheet explains the rebate that may be available in respect of the provincial part of the HST paid by landlords on qualifying rental properties in Ontario. The HST rate in Ontario in effect at the time of publishing is 13% of which 5% is the federal part, and 8% the provincial part.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA). The information in this publication does not replace the law found in the ETA and its regulations. Although correct at the time of issue, this publication may not have been updated to reflect subsequent legislative changes.
If this information does not completely address your particular situation, you may wish to refer to the ETA or relevant regulation, or call GST/HST Rulings at 1‑800‑959‑8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Requesting a GST/HST Ruling or Interpretation, explains how to obtain a ruling or an interpretation.
If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1‑800‑567‑4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.
For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1‑855‑666‑5166.
GST/HST rates
Reference in this publication is made to supplies that are subject to the GST or the HST. The GST/HST rates are those that were in effect at the time of publishing. For the list of all applicable GST/HST rates (current and historic), go to GST/HST calculator (and rates).
If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Memorandum 3-3-2, Place of Supply in a Province – Overview.
Definitions
Definitions for GST/HST purposes (for example, builder, residential complex, residential unit, residential condominium unit, and substantial renovation) and the Canada Revenue Agency's (CRA) current policies on the application of the GST/HST to housing apply equally for purposes of the Ontario new residential rental property rebate. Guide RC4052, GST/HST Information for the Home Construction Industry, Guide RC4231, GST/HST New Residential Rental Property Rebate, and GST/HST Memorandum 19-2, Residential Real Property, explore many of these important terms and concepts.
New housing
The term new housing used throughout this info sheet refers to newly constructed or substantially renovated housing. Housing that has been substantially renovated is generally given the same treatment under the GST/HST as newly constructed housing. Extensive modifications must be made to the housing in order to meet the definition of a substantial renovation for GST/HST purposes. For a full explanation of the factors to consider in deciding if a substantial renovation has taken place, refer to GST/HST Technical Information Bulletin B-092, Substantial Renovations and the GST/HST New Housing Rebate.
Eligibility for the Ontario new residential rental property rebate
Landlords that pay the HST on the purchase of new housing intended for rental purposes in Ontario may be entitled to claim the Ontario new residential rental property rebate. Landlords that construct new housing intended for rental purposes or first supply land under an exempt lease for residential use, and that are required to account for the HST at 13% under the self-supply or change-in-use rules may also be entitled to claim this rebate.
The Ontario new residential rental property rebate is available for the same types of new residential rental properties for which a GST/HST new residential rental property rebate is available in respect of the GST, or the federal part of the HST, paid by a landlord on the purchase or self-supply of qualifying rental property.
Qualifying rental properties include new rental housing, new additions to traditional apartment buildings, new co-operative rental housing, or new long-term residential care facilities. Land that may qualify for the rebate includes a residential lot, a site in a residential trailer park, or a site in an addition to a residential trailer park.
The rules and conditions for claiming the Ontario new residential rental property rebate are generally the same as those for claiming the GST/HST new residential rental property rebate as explained in Guide RC4231. However, the Ontario new residential rental property rebate applies to qualifying rental properties regardless of the fair market value. As a result, where the fair market value threshold of $450,000 has been exceeded, a person may be entitled to claim an Ontario new residential rental property rebate even if the person is not entitled to claim a GST/HST new residential rental property rebate in respect of the federal part of the HST paid for that property.
Where a public service body (PSB) in Ontario meets the conditions for claiming both an Ontario new residential rental property rebate and a PSB rebate of the provincial part of the HST, the PSB may claim one or the other for some of the provincial part of the HST, but not both. In such a case, the PSB will generally claim the higher rebate.
The Government of Ontario introduced a rebate of 100% of the provincial part of the HST for purpose-built rental housing situated in Ontario. Construction of purpose-built rental housing must have begun after September 13, 2023, but before 2031, and must be substantially completed before 2036. For information on all conditions to be met, refer to Guide RC4231 and GST/HST Memorandum 19-3-9, Purpose-built Rental Housing Rebate.
Rebate for qualifying new rental housing
The Ontario new residential rental property rebate is equal to 75% of the provincial part of the HST paid on the purchase or self-supply of the new housing, up to a maximum rebate amount of $24,000 per qualifying rental unit, with no fair market value thresholds.
Rebate for leased land
In the case of land leased for residential use, the Ontario new residential rental property rebate is equal to 75% of the provincial part of the HST paid on the fair market value of the land under the self-supply rules or 75% of the provincial part of the basic tax content under the change-in-use rules, up to a maximum amount of $7,920.
For multiple residential lots or sites in a residential trailer park or an addition to a residential trailer park, the maximum rebate amount of $7,920 applies to each lot or site.
Example 1
A landlord purchases a newly constructed triplex for $975,000, not including the 13% HST. The landlord rents out the three units to individuals as their place of residence. The units are identical in floor space, design, and fair market value ($325,000 each) and the rental arrangement for each unit is for one year. Assuming that the landlord meets all of the conditions for claiming the Ontario new residential rental property rebate, the rebate amount for each rental unit is calculated as follows.
The HST paid on the purchase of the triplex is $126,750, composed of the federal part at 5% ($48,750) and the provincial part at 8% ($78,000).
The Ontario new residential rental property rebate in respect of the provincial part of the HST paid on the purchase is equal to $19,500 per rental unit [($78,000 ÷ 3 units) × 75%].
In addition, a GST/HST new residential rental property rebate is available in respect of the federal part of the HST paid on the purchase of the triplex.
Example 2
A company builds a 100-unit residential care facility that it operates as a nursing home. The units in the facility are not condominium units, are identical, and the entire facility is a residential complex. Substantial completion of the construction of the facility occurs on August 15, 2023. The company first provides a residential unit to a resident on September 1, 2023, at which time the facility has a fair market value of $20 million. Under the self-supply rules, the company reports $2,600,000 as the HST calculated on the fair market value of the entire facility ($20,000,000 × 13%) in its GST/HST return for the reporting period that includes September 1, 2023. Assuming that the company meets all of the conditions for claiming the Ontario new residential rental property rebate, the rebate amount for each residential unit is calculated as follows.
The HST paid on the self-supply of the facility ($2,600,000) is composed of the federal part at 5% ($1,000,000) and the provincial part at 8% ($1,600,000).
The Ontario new residential rental property rebate in respect of the provincial part of the HST paid on the self-supply is equal to $12,000 per rental unit [($1,600,000 ÷ 100 units) × 75%].
A GST/HST new residential rental property rebate is also available in respect of the federal part of the HST paid on the self-supply.
Example 3
Individual A is not a registrant or a builder for GST/HST purposes. Individual A buys a vacant lakeside lot and, in September 2024, leases the lot for a 15-year term to Individual B. Individual B will affix a mobile home to the land and occupy it as a place of residence. The lease of the lot is an exempt supply for GST/HST purposes. Individual A is considered to have made a taxable self-supply (sale and repurchase) of the lot when they give possession of the lot to Individual B.
The fair market value of the lot at that time is $150,000. Individual A is considered to have paid and collected the HST at 13% on the fair market value of the lot. Individual A must report the HST collected and remit the balance owing using Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (Non-personalized). Their reporting period is September 2024, the calendar month during which the self-supply occurs.
Assuming that Individual A meets all of the conditions for claiming the Ontario new residential rental property rebate, the rebate amount for the lot is calculated as follows.
The HST paid on the self-supply of the lot ($19,500) is composed of the federal part at 5% ($7,500) and the provincial part at 8% ($12,000).
The Ontario new residential rental property rebate in respect of the provincial part of the HST paid on the self-supply is equal to $7,920 ($12,000 × 75%, to a maximum of $7,920).
Applying for the rebate
As with the GST/HST new residential rental property rebate in respect of the GST, or the federal part of the HST, paid on the purchase of qualifying rental properties, a builder that sells a qualifying rental property cannot pay or credit the Ontario new residential rental property rebate to the purchaser. The purchaser must apply for the rebate directly with the CRA.
A single rebate application for both the Ontario new residential rental property rebate in respect of the provincial part of the HST and the GST/HST new residential rental property rebate in respect of the federal part of the HST is available on the CRA website. A person that is entitled to claim the Ontario new residential rental property rebate amount can use Form RC7524-ON, GST524 Ontario Rebate Schedule, to calculate the rebate amount and attach it to Form GST524, GST/HST New Residential Rental Property Rebate Application. Form GST524 must be completed even if the person is not entitled to claim a GST/HST new residential rental property rebate in respect of the federal part of the HST where the fair market value threshold of $450,000 has been exceeded.
Where more than one person owns the rental property, the rebate is payable to all of the owners of the property. The CRA will issue one cheque for the rebate amount in respect of both the federal and provincial parts of the HST in the name of all of the owners.
Further information
All GST/HST technical publications are available at GST/HST technical information.
To make a GST/HST enquiry by telephone:
- for GST/HST general enquiries, call Business Enquiries at 1-800-959-5525
- for GST/HST technical enquiries, call GST/HST Rulings at 1-800-959-8287
If you are located in Quebec, call Revenu Québec at 1-800-567-4692 or visit their website at revenuquebec.ca.
If you are a selected listed financial institution (whether or not you are located in Quebec) and require information on the GST/HST or the QST, go to GST/HST and QST information for financial institutions, including selected listed financial institutions or:
- for general GST/HST or QST enquiries, call Business Enquiries at 1-800-959-5525
- for technical GST/HST or QST enquiries, call GST/HST Rulings SLFI at 1-855-666-5166