What is the HST Rebate for Rental Properties?
The HST rebate for rental properties provides a monetary incentive for landlords to purchase new or renewed rental housing properties. This is different from the HST rebate for home ownership. The rental properties are being presented for long-term residential tenancies. These include houses, duplexes, townhouses, and new condo purchases that are meant to be rented out. The aim here is to reduce some of the tax burdens on landlords who invest in the rental economy.
Who Can Become Eligible for this HST Rebate?
Not all property owners are qualified for the HST rebate for rental properties. You must meet some requirements, including:
- The property must be newly built or fully renovated.
- It must be rented to tenants for a duration of one year or more.
- The purchase price and tax values must fall within the rebate parameters.
- Short-term rentals, such as Airbnb rentals, do not qualify for this rebate because they are considered commercial investments, not long-term rental investments.
How Much Can You Get Back?
The rebate amount depends on the value of your rental property. The federal government grants a rebate on a maximum of 36% of the GST portion of the HST on a home that is valued at $350,000 or less. There is a sliding scale for homes between $350,000 and $450,000, with no rebate for amounts above that range. Provincial rebates vary by area.
For instance, if you purchased a new condo for $400,000 on an HST rebate, you could qualify for a rebate in part and reduce your overall tax burden. To obtain an accurate figure for your rebate amount, consulting with professionals like Rebate4U will get it right and maximize your benefit.
How to Claim the HST Rebate
Claiming this HST rebate requires the submission of specific forms and documents. The steps are:
- Submitting Form GST524 (Application for New Residential Rental Property Rebate).
- Providing a copy of the purchase agreement and proof of HST paid.
- Providing lease agreements indicating that the property is rented on a long-term basis.
- Providing the application within two years after closing the purchase.
Processing time can take different amounts of time, but through the professional's expertise like Rebate4U, processing time can be quickened, and errors can be avoided.
Avoid These Common Mistakes
Many homeowners are losing their rental property rebate due to errors such as:
- Filing late after the two-year limit.
- Filing incomplete or incorrect forms.
- Applying for a rebate on an ineligible residence.
Avoid those pitfalls by having all documents completed properly and filed within the time limits.
Key Updates for the Ontario HST Rebate in 2025
In 2025, landlords need to remain aware of any legislative updates to the HST rebate for new condos program. Government policies could change eligibility rules, rebate percentages, or processing times. Contact Rebate4U to stay up to date with any rebate information so you don't miss out on possible savings.
Maximize Your HST Rebate Today with Rebate4U
Understanding how the rental property rebate works in 2025 can lead to significant tax savings. If you’ve recently purchased a rental property or new condo that you intend to rent out, don’t leave money on the table. Take advantage of expert guidance from Rebate4U to ensure your application is handled correctly. Contact us today to maximize your rebate and recover your costs efficiently.
