To increase the supply of rental housing, the federal government enhanced the GST/HST New Residential Rental Property Rebate for purpose-built rental housing. For eligible projects, the rebate is 100% of the 5% GST, and Ontario also rebates its 8% provincial portion of the HST — so the full 13% HST can be recovered.
Eligibility:
- Construction begins after September 13, 2023 and before 2031, and the project is substantially completed before 2036.
- The building has at least 4 private apartment units (each with its own kitchen, bathroom and living area) or at least 10 private rooms or suites (for example, student or seniors' residences).
- At least 90% of the residential units are designated for long-term rental (at least one year).
- New buildings, additions, and conversions of non-residential property (such as offices) into rental housing can qualify, including qualifying co-operative housing.
Not eligible:
- Smaller or individually owned housing — for example a single condo unit, a house, a duplex or a triplex. These may still qualify for the standard rental rebate.
- Renovating an existing residential building, even substantially.
Note:
The rules on when construction "begins", the self-supply of rental housing and the timing of claims can be complex. If you are planning a rental project, please consult us early.
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