GST & QST Rebates for Quebec Homes

Buying or building a home in Quebec can involve significant costs beyond the purchase price. Among these are the Goods and Services Tax (GST) and Quebec Sales Tax (QST), which can apply to new homes, construction work and substantial renovations.

The good news is that eligible homeowners may be able to recover part of the GST and QST they paid through the GST and QST rebate for owners of new or substantially renovated housing.

For some buyers, particularly eligible first-time home buyers, additional GST relief may now be available under the federal First-Time Home Buyers’ GST Rebate introduced for qualifying transactions beginning after March 19, 2025.

This guide explains how the Quebec GST/QST housing rebate works, who may qualify, the maximum amounts available, important property-value limits, application deadlines and what homeowners should know before applying.

Important: Tax rules can be complex and eligibility depends on the specific property, transaction and circumstances. This article is for general information and should not replace professional tax advice.

What Is the GST and QST Housing Rebate in Quebec?

The GST and QST generally apply to the sale of new residential properties and to certain construction and renovation costs. However, Revenu Québec provides a rebate that may allow eligible individuals to recover part of the GST and QST paid on a qualifying new or substantially renovated home.

The rebate can apply in several situations, including when you:

• Purchase a new or substantially renovated home from a builder
• Build a new home on land you already own or lease
• Hire a contractor to build a new home
• Substantially renovate an existing home
• Purchase certain qualifying housing on leased land
• Purchase a qualifying share in a housing cooperative

The rules differ depending on how the property was acquired or constructed, so homeowners should determine which category applies to them before submitting an application.

Who Can Qualify for the Rebate?

One of the most important requirements is that the applicant and any co-owners generally must be individuals.

The housing must also meet specific requirements regarding its use, ownership, construction or renovation, and value.

For the standard GST/QST rebate, the home generally must become the primary place of residence of the purchaser, a co-owner, or a qualifying relation. The applicant or a qualifying person must also generally be the first occupant after the construction or substantial renovation.

This means the rebate is not simply available because someone purchased a new property. The property’s use and the circumstances surrounding its construction or purchase are important.

1. Buying a New or Substantially Renovated Home From a Builder

If you purchase a qualifying new or substantially renovated residential unit and the land from a builder, several conditions must generally be satisfied.

Among the key requirements:

• You and any co-owners are individuals.
• The property is a qualifying single-unit residential complex or residential unit held in co-ownership.
• The home and the land are purchased from the same builder under one sale agreement.
• GST and QST were paid on the purchase.
• Construction or renovation was at least 90% complete when ownership was transferred.
• You, a co-owner, or a qualifying relation is the first occupant.
• The property becomes a primary residence.
• The purchase price is below the applicable GST and QST thresholds.

These requirements are particularly important for buyers of newly constructed homes and condominiums.

2. Building Your Own Home

You may also qualify if you build a home yourself or hire contractors to build it.

In this situation, you generally must have owned or rented the land before construction began and must have paid GST and QST on the construction of the residential property.

The property must also become the primary residence of you, a co-owner or a qualifying relation, and the applicable fair market value limits must be respected when construction reaches the required stage.

This can be particularly relevant to Quebec homeowners who purchase land first and later construct a house.

3. Substantially Renovating an Existing Home

A major renovation can sometimes qualify for the housing rebate, but not every renovation is considered a substantial renovation.

This distinction is extremely important.

A substantial renovation generally involves extensive changes to the existing interior of the home. Under the federal GST/HST framework, generally 90% or more of the interior of the existing housing must be removed or replaced, subject to specific exclusions for structural components such as foundations, certain walls, floors, roofs and staircases.

For example, simply:

• Remodeling one bathroom
• Replacing a kitchen
• Installing new flooring
• Renovating a basement
• Adding a deck
• Replacing a few windows

would not automatically make a property a substantially renovated home.

A project must be extensive enough to meet the applicable substantial-renovation requirements.

The Canada Revenue Agency explains that livable areas are considered for the 90% test, while areas such as garages and crawl spaces are generally excluded.

Why This Matters

Homeowners sometimes assume that a renovation with a very large budget automatically qualifies.

That is not necessarily the case.

The amount spent is not the only consideration. The nature and extent of the renovation are critical.

How Much Can You Get Back?

Under Revenu Québec’s standard GST/QST rebate for owners of new or substantially renovated housing, the maximum rebate is:

Tax	Maximum Rebate
GST	$6,300
QST	$9,975
Combined maximum	$16,275

 

The rebate can be up to 36% of the GST paid and 50% of the QST paid, subject to the applicable maximums and property-value thresholds.

However, homeowners should not assume that every qualifying property receives the maximum amount.

The rebate gradually decreases once the applicable purchase price or fair market value exceeds certain thresholds.

Property-Value Limits You Need to Know

For the standard rebate, the applicable limits are important.

For a qualifying new or substantially renovated home:

• The GST rebate is reduced when the purchase price or fair market value exceeds $350,000.
• The QST rebate is reduced when the purchase price or fair market value exceeds $200,000.
• The standard rebate becomes zero at $450,000 for GST purposes and $300,000 for QST purposes.

This means a buyer purchasing a higher-priced property may qualify for only a partial rebate—or no standard GST/QST housing rebate at all.

There are different thresholds for certain cooperative housing shares and homes situated on land leased from the builder.

What About a Home on Leased Land?

A different set of rules can apply when you purchase a new or substantially renovated residential unit located on land leased from the builder.

For this category, the applicable maximum value thresholds are higher.

Revenu Québec indicates that the fair market value of the unit can be below:

• $472,500 for GST purposes
• $344,925 for QST purposes

The lease must also meet specific requirements, including an option to purchase the land and a term of at least 20 years.

This is an example of why homeowners should determine which rebate category applies to their particular transaction instead of relying on a general calculation.

What Is the First-Time Home Buyers’ GST Rebate?

There is another important rebate that Quebec home buyers should know about.

The federal First-Time Home Buyers’ GST Rebate can provide eligible first-time home buyers with a GST rebate of up to $50,000 on qualifying new homes and certain substantially renovated homes.

This is separate from simply being eligible for the standard new-housing GST/QST rebate.

The new first-time buyer measure applies to qualifying transactions and construction or renovation projects that meet specific dates and conditions.

For example, Revenu Québec states that, among other requirements:

• The buyer must qualify as a first-time home buyer.
• The home must be intended as the buyer’s primary residence.
• The qualifying sale agreement must generally have been entered into after March 19, 2025 and before 2031.
• Construction or substantial renovation must begin after March 19, 2025 and before January 1, 2031.
• Construction or substantial renovation must be substantially completed before January 1, 2036.
• The applicable purchase price or fair market value must be below the prescribed limits.

The maximum GST rebate is 100% of the GST paid, up to $50,000, although the rebate is reduced once the property’s value exceeds $1 million and becomes unavailable at $1.5 million or more, subject to special thresholds for certain cooperative housing and leased-land situations.

Why This Is Important for Quebec Buyers

For an eligible first-time buyer, this newer federal rebate can be substantially more valuable than the standard housing rebate.

However, eligibility is based on detailed conditions. Buyers should not assume that simply purchasing their first home automatically qualifies them.

Can You Receive Both Rebates?

This is one of the areas where homeowners should be especially careful.

The First-Time Home Buyers’ GST Rebate incorporates the standard GST rebate for qualifying homes under the relevant circumstances. Revenu Québec explains that when the applicable residential complex value is under $450,000, the first-time buyer GST rebate includes the GST portion of the standard GST/QST new-housing rebate.

In other words, these programs should not simply be treated as two separate rebates that can always be added together.

The applicable rules depend on the property and the buyer’s circumstances.

When Do You Have to Apply?

Missing the deadline can mean losing the opportunity to claim the rebate.

For the standard GST/QST rebate, the application must generally be filed within two years after the earliest applicable date.

Depending on the situation, this can relate to:

• The date you became the owner of the property
• The date the renovation reached 90% completion
• The applicable first-occupancy timing
• The date ownership was transferred to another person in certain circumstances

For first-time home buyers, separate application deadlines apply depending on whether the property was purchased, constructed or substantially renovated.

Because deadlines can depend on the specific transaction, it is important to determine the correct filing date rather than relying on a general assumption.

Which Form Do You Need?

For the standard GST/QST rebate, the appropriate application depends on how you obtained the home.

Revenu Québec identifies forms including:

FP-2190.AC-V
GST-QST New Housing Rebate Application for a New Home Purchased from a Builder

FP-2190.P-V
GST-QST New Housing Rebate Application: Owner of a New or Substantially Modified Home

FP-2190.L-V
GST-QST New Housing Rebate Application: Owner of a Home on Leased Land or a Share in a Housing Co-Op

For eligible first-time buyers, Revenu Québec identifies FP-2190.APH-V, the First-Time Home Buyers’ GST Rebate Application for a New or Substantially Renovated Home.

In some transactions, the builder may submit the rebate application and pay or credit the rebate directly to the purchaser.

What Documents Should Homeowners Keep?

Although the exact documentation depends on the situation, homeowners should keep organized records relating to the purchase, construction or renovation.

Useful records can include:

• Purchase agreement
• Closing documents
• Invoices showing GST and QST paid
• Contractor invoices
• Construction contracts
• Renovation invoices
• Proof of ownership
• Building permits and related documentation
• Evidence of occupancy
• Fair market value documentation where applicable
• Records showing when construction or renovation reached the required completion stage

Keeping detailed records can make the application process much easier and can help support your eligibility if additional information is requested.

Common Mistakes Homeowners Should Avoid

Mistake 1: Assuming every renovation qualifies

A normal renovation is not automatically a substantial renovation.

The work generally needs to meet the applicable extensive-renovation requirements.

Mistake 2: Ignoring the property-value thresholds

A property may otherwise appear eligible but receive a reduced rebate or no standard rebate because of its purchase price or fair market value.

Mistake 3: Missing the application deadline

The standard rebate generally has a two-year application window tied to specific dates.

Mistake 4: Confusing the standard rebate with the first-time buyer rebate

The first-time home buyers’ GST rebate has its own eligibility requirements and substantially different value thresholds.

Mistake 5: Treating a major renovation as simply an expensive renovation

The cost of a project does not, by itself, establish that it is a substantial renovation.

The extent and nature of the work matter.

A Simple Example

Imagine a Quebec buyer purchases a qualifying newly built home from a builder and pays GST and QST on the transaction.

If the buyer meets all eligibility requirements and the property’s value falls within the applicable rebate range, the buyer may be entitled to recover part of the GST and QST.

However, if the purchase price is above the applicable phase-out thresholds, the rebate may be reduced.

Now consider an eligible first-time home buyer purchasing a qualifying new home under the newer federal program.

If all conditions are met and the property’s value is within the applicable range, the buyer could potentially receive a GST rebate of up to $50,000.

The exact amount depends on the purchase price or fair market value, GST paid and the buyer’s eligibility.

Does This Rebate Apply to Investment Properties?

The standard owner-occupied housing rebate is designed around a primary residence requirement.

If a property is being purchased, constructed or renovated specifically as a rental property, different GST/QST rebate rules may apply.

Revenu Québec has a separate rebate framework for owners of new or substantially renovated residential rental properties.

Therefore, investors and landlords should not automatically use the owner-occupied housing rebate rules when evaluating a rental property.

Why This Matters When Planning a Home Purchase

The GST and QST can represent a significant amount of money when buying a new home or undertaking a major construction project.

Understanding the potential rebate before completing a transaction can help buyers:

• Estimate their true acquisition cost
• Understand the amount of cash required
• Evaluate new construction versus resale properties
• Budget for a major renovation
• Identify potential first-time buyer benefits
• Avoid missing important deadlines
• Discuss financing requirements more accurately

For buyers working with a mortgage professional, understanding these potential rebates can also help with overall financial planning and budgeting.

Frequently Asked Questions

How much is the standard Quebec GST/QST housing rebate?

The maximum standard rebate is up to $6,300 of GST and $9,975 of QST, for a potential combined maximum of $16,275, subject to eligibility and the applicable property-value limits.

Does a resale home qualify?

The standard rebate described in this article generally applies to qualifying new or substantially renovated housing. A normal resale residential property that is not new is generally tax-exempt and does not qualify for this new-housing rebate simply because it is being purchased.

Does a kitchen renovation qualify?

Not necessarily. A kitchen renovation by itself would generally not meet the extensive requirements for a substantial renovation.

Can a first-time buyer receive up to $50,000?

An eligible first-time home buyer may qualify for a GST rebate of up to $50,000 under the new First-Time Home Buyers’ GST Rebate, provided all applicable conditions are met.

Is there a deadline to apply?

Yes. The standard GST/QST housing rebate generally has a two-year filing deadline based on the applicable ownership, completion, occupancy or transfer date. First-time buyer applications have their own applicable deadlines.

Can I claim the rebate if I substantially renovate my existing home?

Potentially, yes. However, the renovation must meet the applicable definition of a substantial renovation, and the other eligibility requirements must also be satisfied.

Where do I apply in Quebec?

For a Quebec property, Revenu Québec administers the applicable GST/HST and QST housing rebate process and provides the relevant application forms. The Canada Revenue Agency also confirms that Quebec housing rebate applications are generally filed with Revenu Québec.

Conclusion

The GST and QST rebate for new or substantially renovated housing can provide meaningful financial relief for eligible Quebec homeowners. However, the rules depend on several factors, including how the property was acquired, whether it is a primary residence, the purchase price or fair market value, the extent of construction or renovation, and when the property was occupied.

The introduction of the First-Time Home Buyers’ GST Rebate, with a potential GST rebate of up to $50,000 for eligible buyers, makes it even more important for Quebec home buyers to understand the current rules before purchasing or building a home.

If you are buying a new home, planning a major renovation or building a property in Quebec, it can be worthwhile to review your potential rebate eligibility before finalizing your budget.