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Eligibility for the GST/HST new residential rental property (NRRP) rebate (which includes the Purpose-built rental housing (PBRH rebate announced on September 14, 2023)
GST/HST new residential rental property rebates you can claim
Documents to include with the rebate application and to keep for your records

Eligibility for the GST/HST new residential rental property (NRRP) rebate (which includes the Purpose-built rental housing (PBRH) rebate announced on September 14, 2023)

You may be eligible for the GST/HST new residential rental property (NRRP) rebate if you are in one of the following situations:

• You are a landlord who purchased a newly constructed or substantially renovated residential rental property
• You are a landlord who constructed your own residential rental property
• You are a landlord who constructed an addition to a multiple-unit residential rental complex
• You are a builder who had to account for the GST/HST under the self-supply rules because you sold a residential unit to an individual and leased the related land to that individual under a single written agreement (available only if the individual is eligible to claim the GST/HST new housing rebate)
• You are a person who had to account for the GST/HST under the self-supply or change-in-use rules because you made an exempt lease of land used for residential purposes (such as the rental of a residential lot or a site in a residential trailer park)

To be eligible for the GST/HST NRRP rebate, the fair market value of the qualifying residential unit must be less than $450,000 when the tax was payable on the purchase or self-supply of the property. For land or a site in a residential trailer park, the fair market value must be less than $112,500.

The rental accommodation or land must be intended for long‑term use as a residence.

If a person is entitled to claim a public service bodies’ rebate with respect to the residential rental property, then the person is not entitled to claim the GST/HST NRRP rebate.

The NRRP rebate goes to the person who paid the GST/HST (the landlord for rental accommodations or to the lessor of the land for leased land).

The GST/HST new residential rental property rebate has increased from the current maximum of 36% to 100% of the GST or federal part of the HST paid, or deemed paid, on the purchase or self‑supply of certain new purpose-built rental housing, with no reduction where the fair market value of a unit is $350,000 or more. Construction of purpose-built rental housing must have begun after September 13, 2023, but before 2031, and must be substantially completed before 2036. Public service bodies that are entitled to claim the public service bodies' rebate may be entitled to claim the PBRH rebate.

To qualify, residential units must meet the requirements for the existing GST/HST new residential rental property rebate and form part of a building with at least:

• 4 residential units each with a private kitchen, a private bathroom, and a private living area, or at least 10 residential units; and
• 90% of residential units are held for the purpose of making an exempt lease of the unit or for making certain exempt supplies with such a lease

Projects that convert existing non-residential real estate, such as an office building, into a residential complex would be eligible for the PBRH rebate if all other above conditions are met. Public service bodies and housing co-ops may also be eligible for the PBRH rebate.

The PBRH rebate does not apply to individually-owned condominium units, single-unit housing, duplexes, triplexes, and owned housing situated on leased land and sites in residential trailer parks, but this housing would continue to qualify for the existing NRRP rebate where the conditions for the existing rebate are met.

A rebate of 100% of the provincial part of the HST is also available for purpose-built rental housing situated in Ontario, Nova Scotia and Newfoundland and Labrador, where conditions for the federal PBRH rebate are met. In addition, for such housing situated in Prince Edward Island, a rebate of 100% of the provincial part of the HST is generally available up to a maximum of $35,000 per unit where construction of a residential complex is substantially completed before 2029, with a reduction to the rebate each year for a residential complex that is substantially completed after 2028.

Learn more: GST/HST Notice 336, Purpose-built Rental Housing Rebate.

GST/HST new residential rental property rebates you can claim

You generally pay the GST/HST when you purchase a new or substantially renovated residential rental property from a builder. If you are the builder of a residential rental property, or if you make an addition to a multiple-unit residential rental property, you are generally considered to have made a self-supply and to have paid and collected tax on the fair market value of the rental property or addition at the time that you lease or occupy the first unit of the property as a place of residence.

Long-term residential leases are exempt from GST/HST. This means that, as a residential landlord, you cannot claim an input tax credit to recover the GST/HST paid or payable on the purchase of a residential complex or that you accounted for on the self‑supply of the complex. However, you may be eligible to claim the GST/HST NRRP rebate.

For a single unit residential complex, residential condominium unit or lease of land, use the following forms to apply for a NRRP rebate if you are eligible:

• Fill out Form GST524, GST/HST New Residential Rental Property Rebate Application to recover some of the GST or federal part of the HST
• Fill out the appropriate provincial rebate schedule to recover some of the provincial part of the HST

For a cooperative housing corporation or a multiple-unit residential property, use the following forms to apply for a NRRP rebate if you are eligible:

• Fill out Form GST524, GST/HST New Residential Rental Property Rebate Application, and Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units to recover some of the GST or the federal part of the HST
• Fill out the appropriate provincial rebate schedule to recover some of the provincial part of the HST

Send the appropriate forms or file your rebate application online using Sign in to your CRA account.

Repaying the NRRP rebate

You will have to repay the NRRP rebate if you claimed a rebate for the lease of a building and land, and all of the following conditions are met:

• The rebate was for a qualifying residential unit (other than a unit located in a multiple-unit residential property).
• The unit is sold within one year after it is first occupied as a place of residence after construction or after the last substantial renovation of the unit was substantially completed (except when the unit is seized or repossessed by a creditor or transferred to an insurer to settle an insurance claim).
• The purchaser is not buying the unit for their use as a primary place of residence or for a relation of the purchaser.

In this situation, you will have to repay an amount equal to the rebate plus interest at the prescribed rate. The interest will apply for the period beginning on the day the rebate was paid to you or used to reduce an amount you owed and ending on the day you repay the rebate.

Documents to include with the rebate application and to keep for your records

Documents you have to send to the CRA

You have to send appropriate documents with your NRRP rebate application. For more information on which documents are needed for each application type, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

The processing of your rebate claim may be delayed or your rebate denied if the application form is not completed in full, the rebate calculation is incorrect, or if the documents requested are not submitted with your NRRP application.

Documents you have to keep

Keep a copy of the completed forms. Also, keep all of your records, including original receipts, invoices, written contracts, agreements, and other documents you used to fill out the forms for six years after the end of the year to which they relate. All claims are subject to audit and, if requested, you have to make your records available to the CRA.