New Residential Rental Property (NRRP) Rebate Calculator

Are you a real estate investor buying a new property to rent out? You may be eligible to recover thousands of dollars through the GST/HST New Residential Rental Property (NRRP) Rebate program. This federal rebate helps offset the GST or federal portion of the HST paid on newly constructed rental properties, allowing investors to reclaim a significant portion of the sales tax paid at closing.

Our free rental property rebate calculator makes it easy for Canadian real estate investors to estimate their potential federal and provincial rebates when purchasing pre-construction condos, new rental homes, or newly built investment properties. Whether you’re buying a condo in Toronto to rent out, investing in a new rental property in Vancouver, or purchasing new construction in Montreal, understanding your investor HST rebate eligibility can put thousands of dollars back in your pocket.

What is the NRRP Rebate and How Does it Work?

The GST/HST New Residential Rental Property Rebate (commonly called the NRRP rebate) is designed specifically for real estate investors and landlords who purchase new or substantially renovated residential properties with the intention of renting them out to tenants. Unlike the primary residence rebate, the NRRP rebate requires you to rent the property to tenants for at least one year to qualify.

Important: This calculator is designed for real estate investors purchasing rental properties. If you’re buying a new home to live in as your primary residence, you need the GST/HST New Housing Rebate instead, which has different eligibility requirements and does not require a rental period.

Key Differences: NRRP Rebate vs Primary Residence Rebate

While the rental property GST rebate amounts are the same as the primary residence rebate, the application process and requirements differ significantly:

• Occupancy Requirement: You must rent the property to a tenant under a written lease for at least one continuous year
• Payment Timing: Investors pay the full HST/GST amount at closing, then file to claim the rebate afterward (unlike primary residence buyers who often have the rebate assigned by the builder at closing)
• Documentation: You need to provide a signed residential lease agreement showing tenant occupancy for the required period
• Application Forms: Use Form GST524 (for single units) or GST525 (for multiple units), not the GST190/GST191 used for primary residences
• Filing Deadline: You must apply within two years after the rental property is first occupied by a tenant

Who Qualifies for the Rental Property Rebate?

The pre-construction condo rebate and NRRP rebate are available to investors who meet these criteria:

• New or Substantially Renovated: The property must be newly constructed or have undergone substantial renovation (at least 90% of the interior removed or replaced)
• Rental Purpose: You must purchase the property with the intention to rent it out, not as a personal residence or vacation property
• Residential Use: The property must be used for long-term residential rental purposes (not short-term vacation rentals or Airbnb)
• One-Year Lease: You must rent the property to a tenant under a written residential lease for at least 12 consecutive months
• Fair Market Value: For the full federal rebate, the property’s fair market value must be under $450,000 (provincial rebates may have different thresholds)
• Individual or Corporation: Unlike primary residence rebates, corporations and partnerships can claim the NRRP rebate

NRRP Rebate Amounts by Province

The rebate amounts for rental properties are calculated the same way as primary residences, but your ability to claim them depends on meeting the rental requirements:

Federal GST Rebate: Up to 36% of the 5% GST paid, with a maximum federal rebate of $6,300. This rebate is available for properties with a fair market value up to $350,000, with a gradual phase-out for properties valued between $350,000 and $450,000. Properties over $450,000 generally don’t qualify for the federal rebate.

Provincial Rebates: Several provinces offer additional rebates on the provincial portion of the HST or PST for rental properties. Ontario provides the most generous provincial rebate at up to $24,000 with no upper price limit. Saskatchewan offers up to $11,340, and Quebec provides up to $9,975 in QST rebates. Requirements and phase-outs vary by province.

⚠️ Critical Requirement: You must rent the property to a tenant for a minimum of 12 consecutive months under a residential lease agreement. If you fail to meet this requirement, you may be required to repay the rebate to the CRA. Keep detailed records including your lease agreement, rent receipts, and proof of tenant occupancy.

💡 For Pre-Construction Condo Investors:

• You’ll pay the full HST/GST at your final closing
• Most developers DO NOT assign the rebate to investors (unlike primary residence buyers)
• Budget for the full tax amount as additional cash required at closing
• After renting for 1 year, you can file your NRRP rebate claim and receive a refund from CRA
• Processing typically takes 2-3 months after submission

Current GST/HST Rates and Maximum NRRP Rebates by Province (2026)

Province/Territory	Tax Rate	GST Portion	Provincial Portion	Max Federal Rebate	Max Provincial Rebate
Ontario	13% HST	5%	8%	$6,300	$24,000
New Brunswick	15% HST	5%	10%	$6,300	None
Newfoundland & Labrador	15% HST	5%	10%	$6,300	None
Nova Scotia	14% HST	5%	9%	$6,300	None*
Prince Edward Island	15% HST	5%	10%	$6,300	None
British Columbia	5% GST only**	5%	N/A	$6,300	None
Saskatchewan	11% (5% GST + 6% PST)	5%	6%	$6,300	$11,340
Manitoba	12% (5% GST + 7% RST)	5%	7%	$6,300	None
Quebec	14.975% (5% GST + 9.975% QST)	5%	9.975%	$6,300	$9,975
Alberta	5% GST	5%	None	$6,300	None
Yukon	5% GST	5%	None	$6,300	None
Northwest Territories	5% GST	5%	None	$6,300	None
Nunavut	5% GST	5%	None	$6,300	None

* Nova Scotia provincial rebate may be available for certain rental properties. Check with CRA for current eligibility.
** BC’s PST does not apply to new home purchases from builders in most cases.

Frequently Asked Questions About NRRP Rebates

What is the difference between the NRRP rebate and the new housing rebate?

The GST/HST New Residential Rental Property (NRRP) Rebate is specifically for investors purchasing properties to rent out to tenants. The rebate amounts are the same as the primary residence rebate, but the NRRP requires you to rent the property for at least 12 consecutive months under a residential lease. Primary residence rebates don’t have this rental requirement and are typically assigned by builders at closing, while NRRP rebates must be claimed by the investor after meeting the rental requirement.

How long do I need to rent out the property to qualify?

You must rent the property to a tenant for a minimum of 12 consecutive months under a written residential lease agreement. The lease must be for long-term residential purposes – short-term vacation rentals, Airbnb, or other temporary accommodations do not qualify. The one-year period must be continuous; if your tenant moves out before 12 months, you’ll need to find a new tenant to complete the required period. Keep detailed documentation including your lease agreement, rent receipts, and tenant contact information.

When do I pay the HST/GST and when can I claim the rebate?

As a real estate investor, you pay the full HST/GST amount at your property’s final closing. Unlike primary residence buyers who often have the rebate assigned by the builder at closing, most developers do not assign NRRP rebates to investors. This means you need the full tax amount as additional cash at closing. After you’ve rented the property for at least one year, you can file your NRRP rebate application with the CRA using Form GST524 (single unit) or GST525 (multiple units). The CRA typically processes rebate claims within 2-3 months.

Can I claim the rebate on a pre-construction condo I’m buying as an investment?

Yes! The NRRP rebate is commonly used by pre-construction condo investors. When you purchase a pre-construction condo with the intention to rent it out, you’ll pay the full HST/GST at your final closing (occupancy or final closing, depending on your agreement). After you close on the unit and rent it to a tenant for at least 12 consecutive months, you can file your NRRP rebate application. Make sure to budget for the full tax amount at closing, as this can be $20,000-$30,000+ on a typical condo purchase. The rebate is a significant cash-flow benefit but is not available until after the rental requirement is met.

What documents do I need to claim the NRRP rebate?

To apply for the rental property rebate, you’ll need: (1) Copy of your Agreement of Purchase and Sale, (2) Copy of your Statement of Adjustments showing HST/GST paid, (3) Signed residential lease agreement for at least one year, (4) Proof of tenant occupancy (rent receipts, tenant contact info), (5) Completed Form GST524 (for single residential unit) or GST525 (for multiple units), and (6) Any applicable provincial rebate schedules. Keep all original documents for at least six years in case of a CRA audit.

Does the rental property have to be my only rental?

No, you can claim NRRP rebates on multiple rental properties, provided each property individually meets the eligibility requirements. There’s no limit to the number of properties you can claim rebates for. Each property must be newly constructed or substantially renovated, and each must be rented to tenants for at least 12 consecutive months. If you’re purchasing multiple units in the same building (like multiple condo units), you would use Form GST525 instead of GST524 to claim the rebate on all units in a single application.

Can a corporation or partnership claim the NRRP rebate?

Yes! Unlike the primary residence rebate which is only available to individuals, the NRRP rebate can be claimed by individuals, corporations, partnerships, and trusts. This makes it ideal for professional real estate investors and property holding companies. The same eligibility requirements apply: the property must be newly constructed or substantially renovated, purchased for rental purposes, and rented to tenants for at least 12 consecutive months under a residential lease agreement.

What happens if my tenant moves out before 12 months?

If your first tenant moves out before completing the 12-month requirement, you need to rent the property to a new tenant to complete the required one-year period. The 12 months must be consecutive, meaning you should minimize any vacancy between tenants. If you have a brief vacancy while finding a new tenant (typically a few weeks), this is generally acceptable as long as you’re actively seeking a tenant and can demonstrate the property remained available for rent. Keep documentation of your efforts to re-rent the property. Extended vacancies or using the property for personal use may jeopardize your rebate eligibility.

How much can I save with the NRRP rebate on a typical condo investment?

The savings can be substantial. For example, on a $500,000 pre-construction condo in Ontario (13% HST = $65,000 in tax), you would receive up to $24,000 in provincial rebate (federal rebate phases out above $450,000). On a $400,000 condo, you’d pay $52,000 in HST but could claim approximately $27,150 in total rebates ($3,150 federal + $24,000 provincial), reducing your net tax cost to about $24,850. In Alberta where only 5% GST applies, a $400,000 property would have $20,000 in GST with a $3,150 federal rebate available. Use our calculator above to estimate your specific rebate based on your property’s price and location.

Can I claim the rebate if I rent to a family member?

Yes, you can rent to a family member and still claim the NRRP rebate, but the rental arrangement must be a genuine arm’s-length transaction. This means: (1) You must have a written lease agreement, (2) The family member must pay fair market rent (not significantly below market rate), (3) You must report the rental income on your tax return, (4) The lease must be for at least 12 consecutive months, and (5) You should maintain proper documentation including rent receipts. The CRA may scrutinize family rentals more closely, so ensure your arrangement is documented and conducted professionally.

Not Sure Which Rebate Applies to You?

Choose the calculator that matches your situation:

• Buying to LIVE IN as your primary residence?
  Use the GST/HST New Home Rebate Calculator
  • No rental requirement • Builder often assigns rebate at closing • For you or family member to live in
• Buying to RENT OUT to tenants?
  Use the NRRP Rebate Calculator (you’re here!)
  • Must rent for 1 year • Claim rebate after rental requirement met • For investment properties

Tip: If you’re buying with the intention to eventually move in but want to rent it out initially, the rental (NRRP) rebate applies. You can always move into the property yourself after meeting the one-year rental requirement.

⚠️ Important Disclaimer

This calculator provides estimates only and should not be considered tax, legal, or investment advice.

Key points to remember about the NRRP rebate:

• Results are based on current CRA guidelines and provincial tax rates as of 2025 and may not reflect your exact rebate entitlement
• You MUST rent the property to a tenant for at least 12 consecutive months under a residential lease to qualify
• The property must be used for long-term residential rental purposes, not short-term vacation rentals or Airbnb
• You must pay the full HST/GST at closing; the rebate is claimed afterward once rental requirements are met
• Application deadline is within two years after the property is first occupied by a tenant
• The calculator assumes builder-built purchases for rental property investments only
• Quebec’s rebate is administered through Revenu Québec and has separate filing requirements
• Fair market value (FMV) rules apply and may differ from purchase price in certain situations
• If you fail to meet the one-year rental requirement, you may be required to repay the rebate to CRA
• Keep detailed records including lease agreements, rent receipts, and tenant information for at least 6 years

Always consult with:

• A qualified real estate lawyer to review your purchase agreement and rebate eligibility
• A tax professional or accountant specializing in real estate investments for personalized advice
• The Canada Revenue Agency (CRA) for official NRRP rebate rules and current requirements
• Your real estate agent to understand whether the rebate is assigned at closing or claimed afterward

For official information, visit the CRA’s GST/HST New Residential Rental Property Rebate page or download Guide RC4028.