The Government of Canada is providing a 100% rebate of the Goods and Services Tax (GST), or the federal portion of the Harmonized Sales Tax (HST), paid on certain new purpose-built rental housing, with no phase-out thresholds (federal PBRH rebate).

The federal PBRH rebate may apply to

• a purchase or construction of a new building
• construction of an addition to an existing building
• a conversion from a non-residential building, such as an office building, to a multiple unit residential complex

On this page

• Eligibility for a federal PBRH rebate
• Eligibility for a provincial PBRH rebate
• Ineligible properties
• Get ready to apply
• How to apply

Eligibility for a federal PBRH rebate

To be eligible for the federal PBRH rebate, residential units must meet all the following conditions:

• They qualify for the current GST/HST new residential rental property (NRRP) rebate
• They form part of a multiple unit residential complex with:
  

  • At least 4 residential units each with a private kitchen, a private bathroom, and a private living area

  • At least 10 residential units

• At least 90% of the residential units are held for:
  

  • Long-term residential rental

  • Making exempt supplies that include giving possession or use of the unit to a person, for occupancy of the unit as an individual’s place of residence

• Construction began after September 13, 2023, but before 2031, and must be substantially completed before 2036
  
  • Generally, the CRA interprets construction to begin at the time the excavation work relating to the residential complex begins. This can also apply to an addition to an existing residential complex.
  • Example: Construction of an addition

    The owner of an 18-unit apartment building was approved to construct a 6-unit addition to the building. The original 18 units were used only for long-term accommodation. Each of the 6 additional units will contain private kitchen facilities, a private bath and a private living area. Construction of the addition began in February 2024. The original 18 units required no renovation; the exterior and the grounds were updated to aesthetically conform to the addition.

    Construction of the addition began after September 13, 2023. Provided all other rebate conditions are met, the PBRH will apply to the 6-unit addition if, at the time of the self-supply, at least 90% of the units in the addition, and at least 90% of the units that form part of the original apartment building and the addition combined, are held for long-term rental or for making exempt supplies that include giving possession or use of a unit for occupancy as an individual’s place of residence.

  • Although there may be other related activities, the CRA does not consider them to be the beginning of construction. The following do not impact the construction start date:
  • Example: Clearing, remediation and reclamation

    In January 2023, a contractor purchased a property that had been used in the manufacture of tractor tires. The property was rezoned from industrial to residential use. Permits were granted for the construction of a 45-unit apartment building. In August 2023, the contractor cleared the property, performed the requisite remediation and reclamation work, and built a network of access roads. In January 2024, the contractor began to excavate for the foundation of the apartment building.

    Construction is considered to begin when the excavation for the apartment building begins. The clearing, remediation and reclamation activities, and the building of roads are generally not considered to be the beginning of construction. As the excavation for the construction of the apartment building began after September 13, 2023 and before 2031, the PBRH rebate will apply, provided all other conditions are met for the rebate.

  • Example: Environmental testing, getting plans or permits

    In April 2023, ABC Corp. purchased vacant land in a residential development. ABC Corp. conducted site and environmental tests, and developed and finalized plans for the construction of an 8-unit multiple unit residential complex that would be leased for long-term accommodation. Permits were issued in August 2023. ABC Corp. contracted for the excavation of the site to begin on September 2, 2023; however, excavation was delayed until October 2023.

    The construction of the complex is considered to begin when the excavation begins. The date when the permit is issued and the date when the construction was scheduled to begin are not considered as the date when construction begins. Provided all other rebate conditions are met, the PBRH rebate will apply as construction of the building began after September 13, 2023.

  • Example: Disruptions due to change of ownership

    In August 2023, a builder excavated the site for the foundation of a 3-unit building. Due to financial difficulties, the builder ceased construction and sold the property in October 2023. The new owner had the plans redrawn, and applied for permits for the construction of a 4-unit building; each unit would contain private kitchen facilities, a private bath and a private living area. Construction on the site resumed in January 2024; the original excavation work was reinforced and utilized in the construction of the building.

    Construction began in August 2023 when the site was excavated for the foundation. As construction did not begin after September 13, 2023, the PBRH rebate does not apply.

Eligibility for a provincial PBRH rebate

In the participating provinces, a provincial PBRH rebate of some or all of the provincial part of the HST is generally available where all conditions are met for the federal PBRH rebate.

In addition, there may be some difference to the construction dates:

• Ontario
• Nova Scotia
• Newfoundland and Labrador

Construction must begin after September 13, 2023, but before 2031, and be substantially completed before 2036

New Brunswick

Construction must begin after November 14, 2024, but before 2028, and be substantially completed before 2030.

Prince Edward Island

A rebate of 100% is generally available up to a maximum of $35,000 per unit where construction begins after September 13, 2023, and substantial completion is before 2029.

The rebate is reduced each year by 10% where substantial completion is after 2028 and before 2036.

Ineligible properties

The PBRH rebate does not apply to:

• Condominium units
• Single-unit housing
• Duplexes
• Triplexes
• Substantial renovation of a residential complex

Where the federal PBRH rebate does not apply, the GST/HST NRRP rebate may be available for a portion of the GST/HST paid on the purchase or construction of such housing.

For more detailed technical information on the PBRH rebate, go to GST/HST Notice 336, Purpose-built Rental Housing Rebate.

Get ready to apply

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