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Changes Extend PST Rebate For New Home Construction

Released on October 14, 2022

Expanded eligibility for the Provincial Sales Tax (PST) Rebate for New Home Construction will help more people afford new homes.

The rebate now includes homes where a contract has been signed and the property meets new housing start criteria prior to April 1, 2023 - an expansion from the original criteria of occupancy before April 1, 2023.

"Saskatchewan has seen urban housing starts increase by 35.6 per cent in August 2022, compared to August 2021 - the second highest increase among provinces," Deputy Premier and Finance Minister Donna Harpauer said. "We want to ensure the rebate helps Saskatchewan families and individuals afford new homes and helps keep the residential construction industry and our economy strong."

The rebate, introduced in 2020, is 42 per cent of PST paid (about 2.5 per cent of the total house price, excluding the land value) for a new, previously unoccupied house (excluding rental properties) where the buyer takes possession of the house after March 31, 2020, and before April 1, 2023.

Buyers are able to qualify by signing a contract for the purchase of the home before April 1, 2023, for which the new housing start is complete before April 1, 2023. Under the expanded criteria the buyer must take possession of the home before April 1, 2024.

A new housing start is defined as when the concrete has been poured for the whole of the footing around the structure, or an equivalent stage. 

Home builder associations requested the expansion because due to supply chain issues many new homes will not be ready for occupancy prior to April 1, 2023, and thus not be eligible for the new home rebate.

In a joint statement, Saskatoon & Region Home Builders' Association CEO Nicole Burgess and Regina & Region Home Builders' Association CEO Stu Niebergall said: "We have appreciated the PST Rebate program that was an important government response to support the new home building industry through the difficult period of time of the pandemic. The program was an important tool in addressing housing affordability and supply. As the program concludes in the coming months, this expansion provides greater certainty for new home buyers that may still qualify for the PST rebate or those who already had made a purchase, but may have become ineligible due to no fault of their own." 

The rebate is available on newly-constructed homes with a total price of less than $450,000, before taxes and excluding the value of the land. The price of any furniture, furnishings and appliances (with some stipulated exceptions) are excluded.

The amount of the rebate is reduced for homes with a total price between $350,000 and $450,000, with no rebate for newly-built homes with a total price of $450,000, or more. The full rebate is available on newly-built homes with a total price of $350,000 and under.

More information about the PST Rebate for New Home Construction is available here PST 75, PST Rebate for New Home Construction.


For more information, contact:

Jeff Welke
Phone: 306-787-6046
Cell: 306-536-1185

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