Quebec First-Time Home Buyer Tax Guide: Credits, Refunds, and GST/QST Rules — CPA Firm Near You, Montreal

Introduction

Buying your first home in Quebec comes with several tax advantages, but many first-time buyers don’t know which credits, refunds, and rebates they qualify for. Some credits reduce your income taxes, while others give you direct cash refunds. This guide explains all the major tax benefits available to first-time home buyers in Quebec — including federal and provincial credits, land-transfer tax rules, and GST/QST rebates — and how a CPA firm near you in Montreal can help you maximize every dollar.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, first-time buyers may qualify for several programs, including:
• Federal First-Time Home Buyers’ Tax Credit
• Quebec Home Buyers’ Tax Credit
• Quebec Welcome Tax (land transfer tax) rules
• GST/HST New Housing Rebate (for new builds)
• QST New Housing Rebate (for Quebec buyers)
• RRSP Home Buyers’ Plan (HBP)
These programs reduce taxes owing or provide cash rebates. CRA and Revenu Québec require closing documents, purchase agreements, occupancy details, and proof of eligibility.

Key Court Decisions

Courts have affirmed that buyers must meet strict first-time buyer conditions — meaning they cannot have owned a home in the prior four years. Judges have denied credits where taxpayers owned foreign real estate or where the property was not actually occupied as a principal residence. Cases also highlight that GST/QST housing rebates require proper invoices from builders and proof of possession dates.

Why CRA and Revenu Québec Review First-Time Buyer Claims

Tax authorities inspect first-time buyer filings because:
• Ineligible buyers incorrectly claim the credit
• Buyers misunderstand the four-year rule
• GST/QST rebates often include large amounts
• Misreporting of occupancy dates
• Welcome Tax reassessments require property value verification
• Contributions withdrawn under the Home Buyers’ Plan must be tracked

Auditors verify property transfers, municipal records, and addresses to confirm eligibility.

Mackisen Strategy

At Mackisen CPA Montreal, we help first-time buyers secure every available credit and refund. We:
• Confirm eligibility under federal and Quebec rules
• Calculate both tax credits (federal + provincial)
• Prepare GST/QST housing rebate claims for new constructions
• Optimize RRSP withdrawals under the Home Buyers’ Plan
• Review Welcome Tax assessments for accuracy
• Assist with property valuation challenges if the city overcharges
If the CRA or Revenu Québec reviews the claim, we prepare documentation and defend the filing on your behalf.

Real Client Experience

A Montreal first-time buyer paid too much Welcome Tax due to an incorrect municipal evaluation. We prepared a valuation analysis and successfully reduced the tax bill. Another client purchased a new condo and missed the QST New Housing Rebate; we filed the rebate retroactively and recovered thousands of dollars.

Common Questions

What is considered a first-time home buyer?

Someone who has not owned a home in the last four years — in Canada or abroad.

Can I claim both federal and provincial tax credits?

Yes. They are separate programs and can be combined.

Are new constructions eligible for GST/QST rebates?

Yes, if purchase and occupancy criteria are met.

Can I withdraw from my RRSP tax-free for a first home?

Yes, under the Home Buyers’ Plan (up to the legal limit), but repayments are required.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps first-time buyers access every available credit and rebate. Whether purchasing a condo, duplex, or new construction, our expert team ensures accuracy, transparency, and maximum tax benefits.