Is the QST also refunded 100% on a new rental?

No. Quebec did not harmonize its QST with the federal enhancement: the QST stays at a partial 36% rebate, with per-unit caps.

DeedWorthGuide · Quebec

GST and QST on a New Rental Property in Quebec (2026)

Last verified: July 2026

In brief — An existing rental resold is exempt from GST/QST. But a new building (bought from a builder or self-built) is taxable: GST 5% + QST 9.975% on the price. The 2026 good news: for an eligible new rental of at least 4 units, the enhanced rebate (PBRH) refunds 100% of the GST, with no cap. The QST, unharmonized, stays at a partial 36% rebate.

GST/QST is the tax trap of new real estate. On a resale of an existing building it does not apply, so it gets forgotten. On new construction it can run to tens of thousands of dollars — but the rebates change the bill dramatically. Here are the rules for a rental investor.

Existing vs new: the first question

Existing rental (resale): the sale is exempt from GST/QST. Nothing to pay on the acquisition.
New building (bought from a builder, or built/substantially renovated by you): the sale is taxable. GST 5% + QST 9.975% apply on the pre-tax price.

It is the new status that triggers the tax — not the fact of renting.

The enhanced PBRH rebate: 100% of the GST

Since September 14, 2023, a federal measure (the purpose-built rental housing rebate, PBRH) refunds 100% of the GST paid on an eligible new rental, with no cap or value threshold.

Main conditions:

a complex of at least 4 units (each with a private kitchen, bath and living area), or 10 or more units;
construction begun after September 13, 2023 and before 2031, substantially completed before 2036;
intended for long-term rental.

It is a major change: where the old partial rebate covered only 36% of the GST (with caps), the PBRH erases the GST entirely on new rentals of 4 units or more.

The QST is not harmonized: 36%

Quebec has not harmonized its QST with the federal enhancement. On the QST, you stay at the partial 36% rebate of the tax paid, with per-unit caps by fair market value. So in 2026, an eligible new rental recovers all of the GST but only 36% of the QST.

Self-supply: the self-build trap

If you build your own rental (or do a substantial renovation), the self-supply rule applies: at first occupancy, you must report and pay GST/QST on the fair market value of the building, as if you had sold it to yourself. You then claim the rebates (PBRH for the GST, 36% for the QST). Plan for it in your cash.

Why it changes your math

On new construction, ignoring GST/QST distorts the acquisition cost by tens of thousands of dollars — either way. A developer applying the old 36% on the GST understates their rebate; an investor who forgets the tax overstates their return. The right calculation includes the tax and the right rebate.

DeedWorth models GST/QST at acquisition, including the PBRH rebate on eligible new rentals, in the purchase cost and after-tax return. Analyze a property with DeedWorth →

FAQ

Do you pay GST/QST on a rental property? On an existing building resold, no: the sale is exempt. On a new building (bought from a builder or self-built), yes: GST 5% + QST 9.975%, with applicable rebates.

What is the PBRH rebate? A federal measure that refunds 100% of the GST on an eligible new rental of at least 4 units (construction begun 2023-2030, completed before 2036), with no cap.

Is the QST also refunded 100%? No. Quebec did not harmonize: the QST stays at a partial 36% rebate, with per-unit caps.

What is self-supply? If you build your own rental, at first occupancy you must self-assess GST/QST on the fair market value, then claim the applicable rebates.

For information only, not personalized tax advice. Rules and thresholds change; confirm your situation with an accountant. Last verified: July 2026.