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), and take possession on or after April 1, 2023; 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 on or after April 1, 2023; or
• occupy the home (for owner-built homes) on or after April 1, 2023, for which a new housing start is completed on or after April 1, 2023.

Note: For more details regarding eligibility, 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 – Builder-Built – Effective April 2023, 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), the rebate amount credited to the purchaser (if applicable), any upgrades, remodelling or any charges for alterations from the base model, to determine the rebate amount – appropriately.

Typically, the PST rebate is shown as a reduced amount or as an amount credited on the invoice or bill of sale to the purchaser. It is required 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

When purchasing a house from a builder, the builder may pay the total amount of the new home rebate directly to the purchaser or credit the amount against the total purchase price of the home. This eliminates the need for the purchaser to apply and wait to receive the rebate.

If the purchaser and the builder agree that the rebate will be assigned to the builder, the purchaser must assign entitlement to the rebate over to the builder, using Part D of the application form.

Builder's Responsibility

When the purchaser assigns the rebate to the builder, the builder must submit the PST Rebate for New Home Construction Application Form – Builder-Built – Effective April 2023 and a copy of the sales contract to the Ministry of Finance. The purchaser’s signature(s) is required in Part F of the application form. Failure to provide the required documentation and obtain the required signature(s) will result in denial of the application for the rebate.

Elimination of Builders claiming Rebate on Return

Effective June 1, 2025, when the rebate is assigned to the builder, the builder is no longer permitted to report and submit only the net amount of PST collected from the purchaser on their PST return to Finance. The following are guidelines when implementing this change.

Possession Date Before June 1, 2025:

Providing the documents noted above have 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.

Possession Date on or After June 1, 2025:

Effective for possession dates on or after June 1, 2025, the builder is not permitted to report and submit to Finance only the net amount of PST collected from the purchaser on their PST return. The builder must report and submit the full 6 per cent PST calculated on the total price of the newly-constructed home on their PST return form. Failure to report and submit the full tax amount on the return may result in re-assessment of the rebate and penalties and interest could apply.

Providing the documents noted above have been submitted to Finance and the application is approved, the rebate amount will be paid directly to the builder by direct deposit. The builder must complete and submit an initial Direct Deposit Payment Request form in order to receive payment of the rebate, and resubmitted for any changes to the information on the form.

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 – Owner-Built – Effective April 2023, 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

All applications for the New Home Construction Rebate must be submitted and received by our office within four years of the possession date

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.