Yes indeed, new homes are taxable. In fact, buyers will face additional fees of 5% for the Goods and Services Tax [GST] and 9.975% for the Quebec Sales Tax [QST].
But good news: it is possible to recover a good portion of these amounts. First-time buyers can even recover the GST in full on homes under one million dollars — up to $50,000. A partial QST refund is also offered to all eligible buyers. Details follow below.
When? How? Why? It's not as complicated as it seems! I understood everything myself, despite my legendary mental block when it comes to anything even remotely related to mathematics. That's saying something.
To make your life easier, Guide Habitation has also programmed a tax calculator for new homes that is very easy to use and understand.
First, are you eligible for a refund?
Yes, if you buy:
A dwelling with two units or less, which will be your usual residence or that of a relative. This may be:
- a duplex;
- a townhouse;
- a single-family home;
- a semi-detached home;
- a mobile home;
- a condominium unit
- a dwelling whose rooms are rented short-term
The purchase price of this residence must also be less than:
- $450,000 for the GST refund.
- $300,000 for the QST refund.
Once these conditions are met, you must determine what type of contract you are signing.
If you are buying as part of a real estate project
If you are simultaneously buying land and a home, as is the case in most real estate projects, the builder can deduct the amount of taxes refunded directly from the sale price in the contract. Less waiting time, less paperwork. Yay!
If this price reduction is not granted to you directly, you can request it by contacting Revenu Québec within two years following the date of transfer of ownership of the property using the forms mentioned below.
The forms
Do you love forms, calculation grids and tax returns? You'll be served with form FP-9190A. This form allows you to request a tax refund. The calculation grid is automatic in the PDF and will save you from having to do the required calculations yourself. The calculation rules are also explained there, as illustrated below.
To download the required forms, click here.
If you are building on your own land
It is important to note that in the case of building a residence on land already owned by the client, the contractor is not authorized to deduct the new housing tax refund from the sale price. The buyer is therefore still eligible for a partial refund (phew!), but must submit the request directly to the Revenue Department themselves.
This must be submitted at most within the following deadlines:
- two years following the day of transfer of ownership to another person
- two years following the day the construction is substantially completed (90%);
- four years following the day you (or a relative) first occupied the dwelling after construction began.
CLICK here to find the Tax Refund Requested by the Owner for a New or Substantially Renovated Home form (FP-2190.P).
In certain exceptional circumstances, the request may be accepted after the prescribed deadlines. It must then be accompanied by a letter explaining the reasons for this delay. According to a government representative, "the situation invoked by the taxpayer must be beyond their control and will be evaluated on a case-by-case basis. This may be, for example, a natural disaster, a death in the immediate family, etc."
It's official: no more GST for first-time buyers!
Since March 12, 2026, Bill C-4 has received royal assent: first-time buyers of a new home can recover all of the GST on properties under one million dollars, and a partial refund for those between 1 and 1.5 million dollars. Result: up to $50,000 in savings.
This new refund is in addition to the existing refund described above — the two combine for eligible first-time buyers. The measure applies retroactively to contracts concluded as of March 20, 2025. The CRA and Revenu Québec have been accepting applications since March 2026.
For all details and eligibility criteria, consult our complete article on GST refunds for first-time buyers.
Be careful with price displays
Some buyers are sometimes confused about how developers display their prices. Thus, some include the tax refund amount in advance in their prices, in order to be listed among the first in search engines. So, some will display a price to which taxes must be added and the refund subtracted. Others will do all the calculation in advance and present you with a lower figure. In all cases, the price is the same. This marketing technique is completely legal and many practice it. Obviously, this can cause a bit of frustration if you didn't understand that this was the net price, refunds included.
When in doubt, don't hesitate to ask the question: you will be answered quickly with complete transparency. Everything is also confirmed before the notary. There you have it, that covers the question, you can now proclaim yourself budding tax specialists. For more information, visit the Revenu Québec website.
In the meantime, all you have to do is start your search for a new house or condo!
