Buying Your First Home in Quebec in 2026: New Tax Relief That Could Lower Your Costs

The condo feels right. It’s in the neighbourhood you want, the kitchen gets plenty of light, and you already know where your desk would go. You check the price, then estimate the monthly payments. So far, it looks manageable.

Then you add everything else. Taxes on a new build, notary fees, the welcome tax, moving costs… Even with a down payment saved, the amount you need can come as a surprise.

Before putting your search on hold, though, it may be worth taking another look at the numbers.

In 2026, the federal GST rebate for first-time buyers of eligible new homes and Quebec’s new tax credit for property transfer duties could reduce your purchase costs. With advance payment applications for the Quebec credit expected to open in October, there’s a practical reason to look into these measures this fall.

Two Measures That Cover Different Costs

When you’re planning a purchase, housing programs can start to sound alike. These two measures, however, apply to different expenses.

The first-time home buyers’ GST rebate depends on factors including the purchase price and the details of the transaction. Quebec’s tax credit for access to homeownership is calculated using the property transfer duties paid.

Those maximums show the potential support available. Your actual savings depend on your purchase and eligibility.

A $450,000 New Condo: A Potential $22,500 GST Rebate

“Plus taxes” takes up very little space in a property listing. It can take up much more room in your budget.

Consider a new condo priced at $450,000 before taxes. Assume both the buyer and the property meet every requirement for a full GST rebate.

This example excludes QST and other closing costs.

For someone buying their first home, recovering $22,500 is worth looking into. This is a rebate of the tax added to the price, however. The condo’s price before taxes is still $450,000.

Under Revenu Québec’s rebate thresholds, a qualifying house with land or condo can generally receive a full GST rebate at a purchase price of up to $1 million before taxes. The rebate then decreases, reaching zero at $1.5 million. Different thresholds apply to certain arrangements, including homes on leased land.

QST must still be calculated separately. In its announcement about the first-time home buyers’ rebate, Revenu Québec confirms that the provincial government has not extended this new relief to QST.

Help With the Welcome Tax, Just as Expenses Add Up

Most buyers think about mortgage payments well before making an offer. Property transfer duties can be easier to overlook during viewings.

Yet that bill arrives alongside the costs of settling in. You’ve just moved, the windows need blinds, and perhaps the fridge from your rental isn’t coming with you.

Subject to eligibility, Quebec’s new credit covers the first $5,000 of property transfer duties paid, plus 25% of the next $3,500. A $6,000 bill could therefore qualify for a $5,250 credit, before any applicable reduction.

The tax credit calculation rules provide for a reduction when the taxable base used to calculate transfer duties exceeds $750,000. The credit reaches zero at $1 million.

For eligible buyers, the next step is approaching: Revenu Québec says advance payment applications will open in October 2026.

You must have paid the transfer duties before requesting an advance payment. You’ll therefore still need to budget for the bill upfront, even if part of it can later be reimbursed.

Who Counts as a First-Time Buyer?

You’ve never bought a property, but you lived with your spouse in a home they owned. Would you qualify?

That’s a situation worth checking.

For the GST rebate, the definition of a first-time home buyer considers whether you lived in a home owned by you or your spouse or common-law partner as your primary residence during the current calendar year or the previous four calendar years. A home outside Canada can also count.

You must also be at least 18 and a Canadian citizen or permanent resident. Having owned a home a long time ago does not necessarily rule you out. Equally, never having your name on a property title does not automatically mean you qualify.

The project’s dates matter, too. The GST rebate requirements include deadlines for the purchase agreement, construction and transfer of the home. The agreement must generally have been entered into after March 19, 2025, and before 2031.

Check each program separately. Qualifying for one does not automatically mean you qualify for the other.

Ask the Builder for a Detailed Price Breakdown

One particularly useful question is: “Which rebates have already been included in the price you’re showing me?”

Ask for a written breakdown showing the price before taxes, GST, QST, any rebates already deducted and the total. This makes it easier to compare projects without accidentally subtracting the same rebate twice.

When the rebate is applied matters as well. As explained in Revenu Québec’s GST rebate application instructions, the builder may pay or credit the rebate to you and then submit the application.

Share that breakdown with your lender and notary. Together, you can clarify how much you need, when payments are due and which funds must be available.

Revisit the Numbers With Everyday Life in Mind

If you’ve put your home-buying plans on hold, these measures may be a good reason to speak with your lender again.

Start with a property that meets your needs. Check which rebates and credits could apply, then look at your ongoing expenses: mortgage payments, condo fees, insurance, municipal and school taxes, utilities and maintenance.

That gives you a clearer picture of both the purchase and the life you’ll be able to afford afterwards.

Perhaps you’ll need more time to prepare. Or perhaps a home you ruled out during your first search deserves a second viewing.

You can start by exploring new housing developments on Vistoo, shortlisting the ones you like and requesting detailed pricing. With the available 2026 tax relief included in your calculations, you’ll have a better idea of what’s within reach.