Saskatchewan PST Rebate for New Home Construction

The Provincial Sales Tax (PST) Rebate for New Home Construction provides a rebate of up to 42% of the PST paid on the purchase of a new, previously unoccupied home (newly constructed home). This rebate is designed to stimulate the economy through increased housing construction and make home ownership more affordable for Saskatchewan residents.

The PST Rebate for New Home Construction is administered by the Ministry of Finance. Participants of this program may also be eligible for the Secondary Suite Incentive Grant Program (SSI).

The program is available for newly constructed homes with a total price of less than $550,000, before taxes and excluding the value of the land and the price of any furniture, furnishings, and appliances, with some exceptions. The amount of the rebate is reduced for homes with a total price between $450,000 and $550,000. Details on how the rebate is calculated are available in the information bulletin.

You may be eligible for the rebate if you:

• purchased a newly-constructed home from a builder for use as your primary place of residence;
• constructed or hired someone else to construct your home for use as your primary place of residence; or,
• purchased shares in a cooperative housing (co-op) complex for the purpose of using a unit in the co-op for use as your primary place of residence; and,
• sign a contract for purchase of the home (for homes purchased from a builder) on or after April 1, 2023, and take possession before April 1, 2026; or,
• sign a contract before April 1, 2023, for purchase of the home (for homes purchased from a builder) for which the new housing start is completed on or after April 1, 2023, and you take possession of the home before April 1, 2026, or,
• occupy the home (for owner-built homes) before April 1, 2026, for which a new housing start is completed on or after April 1, 2023.

Note: For more details regarding eligibility under the original program, please see Information Bulletin PST 75, PST Rebate for New Home Construction.

An application form, with supporting documentation, must be completed and submitted for all rebate claims under the PST Rebate for New Home Construction, as noted below.

Where there is more than one purchaser (owner), all parties are required to sign the application form. In addition, you must indicate on the form the party to whom any applicable rebate will be paid.

Homes Purchased from a Builder

To apply for the rebate on a newly constructed home purchased from a builder, please complete and submit the PST Rebate for New Home Construction Application Form April 1, 2023 to March 31, 2026 Builder Built, along with a copy of the sales contract.

Please obtain the builder’s federal business number and PST vendor’s licence number and record them on the application. Providing these numbers will assist with processing your application. Purchasers are encouraged to search the Provincial Sales Tax Registry to verify the builder holds a valid PST vendor’s licence.

The purchase agreement, statement of account or other supporting documents must clearly state the agreed upon value of the land, PST charged on the sale of the newly constructed home (must be a separate line item), any upgrades, remodelling or any charges for alterations from the base model, to determine the rebate amount appropriately.

Typically, the PST is shown as a reduced amount or as an amount credited on the invoice or bill of sale. It is a requirement that PST is shown as a separate line item on the invoice or bill of sale to the customer.

Assignment of Rebate from Purchaser to Builder

The purchaser may assign entitlement to the rebate over to the builder and the builder should either pay the rebate amount to the purchaser, or credit the amount against the PST collected on the total price to the purchaser.

When the purchaser assigns the rebate to the builder, the builder must submit the PST Rebate for New Home Construction Application Form April 1, 2023 to March 31, 2026 Builder-Built and copy of the sales contract to the Ministry of Finance. The purchaser’s signature(s) is required in Part D of the application form. Failure to provide the required documentation and obtain the required signature(s) will result in denial of the assigned rebate and the builder will be held liable for the tax payable.

Providing the appropriate application form and required documentation has been submitted to Finance, the builder may report and submit to Finance only the net amount of PST collected from the purchaser. This is subject to audit verification.

Owner-Built Homes

To apply for the rebate on an owner-built home, please complete and submit the PST Rebate for New Home Construction Application Form April 1, 2023 to March 31, 2026 Owner-Built, along with information to verify land ownership, and a summary of the building costs where PST has been paid. You are required to submit certain invoices with the rebate application as outlined in the application form, but all invoices must be maintained in your records and may be requested.

In order for the owner to be eligible for the PST Rebate for New Home Construction, the owner must have paid the tax, as required, on the construction materials and taxable services related to the construction of the owner-built home.

Filing Deadline

April 1, 2023, to March 31, 2026, program applications for must be received in our office on or before March 31, 2027.

Applications and supporting documentation should be submitted using the Saskatchewan E-Tax Services (SETS) portal at Apply for a PST Refund Using SETS or by email to PSTRefunds@gov.sk.ca. We are unable to accept applications and documentation that are uploaded as attachments to the builder’s tax returns.