My client bought a new condo to rent out. How does the GST524 new residential rental property rebate work, and how much do they get back?
In 2026, the GST524 rebate returns 36% of the GST, or federal part of the HST, on a new rental unit, up to $6,300 at a fair market value of $350,000 or less, and nothing at $450,000. The unit must first be used as someone's primary residence for at least a year. File within two years.
How much does the GST524 rebate pay at each fair market value?
The federal rebate is A × ($450,000 minus B) / $100,000, where A is the lesser of $6,300 and 36% of the GST (or federal part of the HST) and B is the greater of $350,000 and the unit's fair market value. That formula is subsection 256.2(3) of the Excise Tax Act laws-lois.justice.gc.ca. At $450,000 or more there is no federal rebate
canada.ca.
| Fair market value of the unit | Federal rebate | Ontario NRRP (75% of the 8% part, up to $24,000) |
|---|---|---|
| $300,000 | $5,400 | $18,000 |
| $350,000 | $6,300 | $21,000 |
| $375,000 | $4,725 | $22,500 |
| $400,000 | $3,150 | $24,000 |
| $425,000 | $1,575 | $24,000 |
| $450,000 or more | $0 | $24,000 |
The table assumes tax was charged on a price equal to fair market value. The GST is 5% everywhere, and Ontario's 13% HST splits into 5% federal and 8% provincial canada.ca. The Ontario NRRP is 75% of the provincial part up to $24,000 for a single unit, and the CRA says it can be claimed even when the unit is worth $450,000 or more
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The test is fair market value, not the price on the agreement. In a new multiple unit building, each unit's value is its share of total floor space times the value of the whole complex, while a duplex is valued as one property canada.ca. For land leased for residential use, or a residential trailer park site, the thresholds drop to $87,500 and $112,500 under subsection 256.2(6)
laws-lois.justice.gc.ca.
Worked example: a $420,000 Ontario condo bought to rent returns $25,890
Your client buys a new condo unit from a builder in Ontario for $420,000, equal to its fair market value, and leases it to a tenant who lives there. The HST is 13% of $420,000, or $54,600.
| Step | Amount |
|---|---|
| Federal part of the HST (5% of $420,000) | $21,000 |
| 36% of that | $7,560 |
| Capped at | $6,300 |
| Phase out factor: ($450,000 minus $420,000) / $100,000 | 0.3 |
| Federal rebate | $1,890 |
| Provincial part (8% of $420,000) | $33,600 |
| Ontario NRRP: 75% is $25,200, capped at | $24,000 |
| Total back on $54,600 of HST | $25,890 |
Your client files Form GST524 with Schedule RC7524 ON. A condo unit doesn't need Form GST525, which is for several units in a multiple unit complex such as an apartment building or a triplex canada.ca. A condo bought from a builder can also get the temporary Ontario enhanced rebate covered below if the purchase agreement was signed between April 1, 2026 and March 31, 2027, the building is substantially completed by December 31, 2029 and tax becomes payable by December 31, 2032. Then the Ontario relief reaches the full $33,600, which takes the total to $35,490
canada.ca.
Who can claim GST524, and who is shut out?
Long term residential rents are generally exempt, so a landlord usually can't claim input tax credits on the tax paid on the building canada.ca. This rebate replaces part of that. The main claimants are a purchaser landlord who bought new or substantially renovated housing from a builder, paid the tax and leases it for residential use, and a builder landlord who self supplied the housing and reported and remitted the tax
canada.ca. The guide also covers a builder that sells the building and leases the land, a cooperative housing corporation, and residential land leases. Exempt rents are explained on the HST exempt supplies page.
The unit must be a qualifying residential unit: self contained, held to lease as an individual's primary residence, and first used as a primary place of residence for at least one year canada.ca. The one year test is in the definition in subsection 256.2(1)
laws-lois.justice.gc.ca. A unit rented by the night fails it, which is why short term rentals rarely get this rebate.
Two rules trip up clients. An individual who is eligible for the new housing rebate can't claim this one canada.ca, so a client who buys to live in the unit goes to the GST/HST new housing rebate instead. And a builder can't pay or credit this rebate at closing: the purchaser landlord applies to the CRA directly
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A builder that rents out a new house or building it built is deemed to have sold and bought it back at fair market value, and owes the tax on that self supply before it can claim canada.ca. The self supply rule itself is on the GST on residential real estate page.
When is the GST524 due for each claimant?
| Claimant | Deadline | Example |
|---|---|---|
| Purchaser landlord | Two years after the end of the month tax first became payable | Ownership transferred June 1, 2025: file by June 30, 2027 |
| Builder landlord (self supply) | Two years after the end of the month the self supply occurred | Possession given to a tenant July 1, 2025: file by July 31, 2027 |
| Builder that sells the building and leases the land | Two years after the end of the month the self supply occurred | Same as the builder landlord |
| Cooperative housing corporation | Two years after the end of the month occupancy was given under an exempt long term lease | Occupancy given March 10, 2026: file by March 31, 2028 |
The deadlines come from Guide RC4231 canada.ca and subsection 256.2(7)
laws-lois.justice.gc.ca. In the guide's own builder example, construction was substantially complete on June 15, 2025 and possession was given on July 1, 2025, so the self supply date is July 1, 2025
canada.ca.
A GST/HST registrant can claim the rebate on line 111 of its return and send Form GST524, Form GST525 if it applies, and the provincial schedule canada.ca. Anyone else mails the application or files online. Keep the records for six years, because every claim can be audited. The CRA's GST524 page carries a fillable PDF that has to be opened in Adobe Reader, not a browser
canada.ca.
If a unit that isn't in a multiple unit complex is sold within one year after it's first occupied as a place of residence, and the buyer isn't buying it as a primary residence for themselves or a relation, your client repays the rebate plus interest at the prescribed rate less 2% a year. That's subsection 256.2(10) laws-lois.justice.gc.ca. A seizure by a creditor or a transfer to an insurer to settle a claim doesn't trigger it
canada.ca.
When does the 100% purpose built rental rebate replace the 36%?
For a qualifying purpose built rental building, the federal rebate rises from 36% to 100% of the GST or federal part of the HST, with no phase out thresholds canada.ca. Construction must begin after September 13, 2023 and before 2031 and be substantially complete before 2036. The building needs at least four units with a private kitchen, bathroom and living area, or at least ten units, and at least 90% of the units must be held for long term residential leases
canada.ca.
| Feature | Standard rebate (GST524) | Purpose built rental rebate |
|---|---|---|
| Federal amount | 36% of the GST, up to $6,300 per unit | 100% of the GST, by floor space share |
| Value ceiling | Zero at $450,000 | None |
| Condos, houses, duplexes, triplexes | Can qualify | Excluded |
| Substantial renovation of an existing building | Can qualify | Excluded |
| Deadline | Two years after the end of the relevant month | Two years after the end of the month tax first became payable |
The exclusions and the deadline are in GST/HST Memorandum 19-3-9, which the CRA says it is updating after the amendments received royal assent on March 26, 2026 canada.ca. Provinces add their own purpose built relief: 100% of the provincial part in Ontario, Nova Scotia and Newfoundland and Labrador when the federal conditions are met, up to $35,000 per unit in Prince Edward Island, and in New Brunswick for construction that begins after November 14, 2024 and before 2028
canada.ca.
Ontario has a temporary rental rebate on top of the NRRP
As of October 2026, the Ontario enhanced new residential rental property rebate (ENRRP) generally applies to new housing where construction begins between April 1, 2026 and March 31, 2027, plus some housing bought in that window where construction began earlier canada.ca. For a condo unit or house bought from a builder when construction began on or before March 31, 2026, Guide RC4231 requires the purchase agreement to be signed between April 1, 2026 and March 31, 2027, substantial completion by December 31, 2029 and tax payable by December 31, 2032
canada.ca.
Together with the Ontario NRRP, the ENRRP can return up to 100% of the 8% provincial part of the HST, generally capped at $80,000. It's reduced when fair market value is over $1,500,000 and isn't available at $1,850,000 or more. Your client can't claim both the ENRRP and the purpose built rental rebate for the same housing canada.ca. Eligible landlords may also get the Ontario new home affordability payment, which the province administers
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Sources
Can the builder credit the rental rebate at closing, like the new housing rebate?
No. A builder can't pay or credit the new residential rental property rebate to a purchaser landlord, so your client applies to the CRA directly on Form GST524 canada.ca.
What if my client lives in the unit instead of renting it?
Then the claim is the new housing rebate, not GST524: an individual eligible for the new housing rebate can't claim the rental rebate canada.ca. The amounts and the Form GST190 process are on the GST/HST new housing rebate page.
Does a new condo bought to rent qualify for the 100% purpose built rebate?
No. The purpose built rental rebate isn't available for condominium units, single unit houses, duplexes or triplexes canada.ca. A condo can still get the standard 36% rebate and, in Ontario, the NRRP.
Does a substantial renovation qualify?
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.