GST/HST, QST and PST on home renovations in Canada (2026)
Which sales taxes apply to renovation contracts in each province, how PST works for contractors in BC, Manitoba and Saskatchewan, substantial renovations and worked tax examples.
A renovation of an existing home by a GST/HST-registered contractor is a taxable supply: you pay 13% HST in Ontario, 14% HST in Nova Scotia (since 1 April 2025), 15% HST in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 5% GST elsewhere, on labour and materials alike. Quebec adds QST at 9.975% on the pre-tax price. In British Columbia and Manitoba, contractors who install materials into real property generally pay PST or RST on those materials themselves and build it into the price, so your invoice normally shows only GST. In Saskatchewan, contractors generally charge 6% PST on the whole contract. There is no general GST/HST rebate for renovating a home you already own; the new housing rebates apply only to new or substantially renovated homes.
This guide belongs to the renovation cost overview. The sales tax calculator adds the tax to any contract price.
Rates by province and territory
Rates checked against the Canada Revenue Agency's GST/HST rate table in October 2026.
| Province or territory | Federal part | Provincial part on a renovation contract | Usual rate shown on the invoice |
|---|---|---|---|
| Alberta, Yukon, NWT, Nunavut | 5% GST | none | 5% |
| British Columbia | 5% GST | 7% PST usually paid by the contractor on materials | 5% (PST is inside the price) |
| Saskatchewan | 5% GST | 6% PST generally charged on the total contract | 11% |
| Manitoba | 5% GST | 7% RST usually paid by the contractor on materials | 5% (RST is inside the price) |
| Ontario | 13% HST | included | 13% |
| Quebec | 5% GST | 9.975% QST | 14.975% |
| Nova Scotia | 14% HST | included | 14% |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST | included | 15% |
Provincial rules for contractors have exceptions (for example, when a contractor sells materials without installing them, or for certain items such as some appliances). If your invoice looks different, ask the contractor which rule they are applying and check the provincial finance ministry's guidance.
Worked examples on a $50,000 contract
All illustrative.
- Ontario: HST $50,000 × 13% = $6,500; total $56,500.
- Quebec: GST $2,500; QST $50,000 × 9.975% = $4,987.50; total $57,487.50. QST is calculated on the price before GST.
- Alberta: GST $2,500; total $52,500.
- British Columbia: GST $2,500; total $52,500, with the contractor's PST on materials already built into the $50,000.
- Saskatchewan: GST $2,500; PST $3,000; total $55,500.
- Nova Scotia: HST $7,000; total $57,000.
Items you buy yourself, such as appliances or tile from a retailer, are taxed at the till under the normal retail rules, which in BC, Saskatchewan and Manitoba include PST.
Why the "cash price" is a trap
A business whose worldwide taxable revenues are $30,000 or less over four consecutive calendar quarters is a small supplier and does not have to register for GST/HST, so a very small operator may legitimately not charge tax. A contractor running a full renovation business who offers a lower price "without tax" or "for cash" is a different matter. You lose a written, traceable payment record, receipts for tax credits, and often the contract, permit and warranty that come with a proper job. If something goes wrong, proving what you paid is harder.
You can check a GST/HST number with the CRA's GST/HST Registry on canada.ca, using the business name, the number and the date of the transaction. Revenu Québec offers a similar check for QST numbers.
Substantial renovations and the new housing rebates
The GST/HST new housing rules treat a house as "substantially renovated" only when all or substantially all of the interior (CRA guidance generally reads this as about 90% or more) is removed or replaced, keeping little more than the foundation, exterior walls, interior supporting walls, floors, roof and staircases. A kitchen, a basement or even several rooms do not meet that test.
If a project does meet it, the sale of the house by a builder (or, in some cases, an owner who does the substantial renovation themselves) can fall under the new housing rules, and the GST/HST new housing rebate or owner-built home rebate may apply, subject to price thresholds and conditions. The federal First-Time Home Buyers' GST rebate, introduced in 2025 for eligible first-time buyers of new homes, can also cover substantially renovated homes in some cases. These rules are technical and have strict deadlines; read the CRA's guidance on new housing rebates or ask an accountant before you assume a rebate.
Tax credits are not sales tax rebates
Income tax credits such as the Multigenerational Home Renovation Tax Credit and the Home Accessibility Tax Credit are calculated on eligible expenses, including the GST/HST you paid on them in most cases. They are claimed on your income tax return, not on the invoice. See renovation tax credits in 2026.
Checklist for invoices and quotes
- The quote shows the price before tax and each tax as a separate line.
- The contractor's GST/HST number (and QST number in Quebec) appears on quotes and invoices.
- Change orders state whether their price includes tax.
- Deposits and progress invoices show the tax on each amount.
- You keep every invoice and proof of payment for credits, warranty claims and a future sale.
Holdbacks and tax
When you keep a lien-act holdback, make sure the contract says how tax on the held-back amount will be invoiced and paid. See deposits, holdbacks and payment schedules.
Related guides
For worked budgets that include the tax line, see the kitchen renovation cost guide (Ontario HST) and the bathroom renovation cost guide (Quebec GST and QST).
FAQ
Is HST charged on labour as well as materials?
Yes. In HST provinces the whole price of a renovation contract by a registered contractor is taxable.
Did the GST/HST holiday cover renovations?
No. The temporary GST/HST relief from 14 December 2024 to 15 February 2025 covered specific items such as some food, children's clothing and toys, not renovation services.
Can I claim back GST/HST on my renovation?
Not as a homeowner renovating your own home, except through the specific new housing rebates for new or substantially renovated homes. GST/HST registrants who use part of a home for a taxable business should ask an accountant about input tax credits.
Sources
- Canada Revenue Agency — GST/HST rates, small supplier rules, GST/HST Registry and new housing rebates
- Revenu Québec — QST and validation of QST numbers
- Government of British Columbia — PST for real property contractors
- Manitoba Finance — RST for real property contractors
- Government of Saskatchewan — PST on services to real property
