Flooring contractors in Ontario can recover thousands of dollars on each qualifying project through the federal GST/HST New Housing Rebate. If you're a contractor buying flooring materials for a renovation or new-build installation in the GTA, understanding how this rebate works — and how the Ontario PST exemption on building materials applies — can make the difference between leaving money on the table and running a genuinely tax-efficient operation.
The federal New Housing Rebate lets builders and contractors recover a portion of the GST/HST paid on building materials. Ontario's provincial PST (8%) does not apply to materials that become part of a permanent structure when purchased by a contractor. Together, these two rules significantly reduce the effective tax load on flooring installations across Scarborough, Markham, North York, Mississauga, Brampton, and the broader GTA.
What Is the GST/HST New Housing Rebate for Flooring Contractors?
The federal New Housing Rebate (NHR) is a mechanism under the Excise Tax Act that rebates a portion of the GST/HST paid on building materials to the person who built or substantially renovated a home — or who purchased it as a principal residence. In Ontario's 13% HST system, the maximum federal rebate is $24,000, calculated as $6,000 multiplied by the 13% HST rate divided by 5%.
When a GTA contractor buys flooring materials and installs them as part of a qualifying new home or substantial renovation, the rebate entitlement depends on the purchase price of the home or the renovation contract value. A $50,000 flooring installation at 13% HST means $6,500 in tax was paid — and the NHR formula determines how much of that comes back. Ontario also has its own provincial NHR stream that stacks on top of the federal calculation, though contractors should verify current rates and thresholds with the Canada Revenue Agency for their specific project.
The practical implication for contractors: if your client is purchasing the flooring through you as the contractor (rather than buying directly from the supplier), you may be entitled to claim the NHR — or to pass the benefit through to your client if the purchase was made on their behalf. GST/HST registration and proper invoicing are the two requirements that unlock this benefit.
Ontario's PST Exemption on Building Materials for Contractors
Ontario's Retail Sales Tax Act provides a specific exemption for building materials purchased by a contractor for use in the performance of a contract. When materials become a permanent part of a structure, PST does not apply to their purchase price — regardless of whether the end client is a homeowner, a builder, or a property developer.
This means that SPC vinyl, engineered hardwood, laminate, and solid hardwood purchased by a registered contractor for a renovation or new-build installation in Ontario is not subject to the 8% PST. The exemption applies at the point of purchase, provided the contractor is the named purchaser on the supplier invoice.
The key distinction contractors need to understand: this exemption covers materials installed permanently — new flooring in a basement renovation, hardwood in a new addition, or SPC vinyl in a condo fit-out. Materials consumed on the job (adhesive, underlayment that is not permanent) may or may not qualify. If you're uncertain, ask your accountant or the supplier's trade desk before purchasing.
How the HST Input Tax Credit Works for Flooring Contractors
If the New Housing Rebate does not apply to your project — for example, on a renovation where the home is not new and the client is not claiming the rebate — contractors who are registered for GST/HST can still recover the HST paid on materials by claiming Input Tax Credits (ITCs) on their regular GST/HST return.
An ITC lets a registered person recover the GST/HST paid or payable on business inputs, provided those inputs are used in the course of commercial activities. If you're billing your client separately for materials with HST charged on top, you can generally claim an ITC to offset the HST paid to your supplier. If you're including materials in a flat-rate contract without charging HST, the ITC route is typically not available.
For contractors working on rental properties, Airbnb units, or commercial tenant improvements — where the space is not used as a principal residence — the NHR does not apply, but the PST exemption still does. Your ITC eligibility depends on whether you're registered for GST/HST and whether your commercial activities permit the recovery.
Which Flooring Purchases Qualify for the Rebate and Exemption?
Both the NHR and the PST exemption apply to flooring materials that are permanently installed as part of a structure. At Top Floorings Depot, the products most commonly purchased under these provisions by GTA contractors include:
- Engineered hardwood flooring for upstairs levels, living rooms, and condos — including European Oak wide-plank products for premium new-builds
- SPC vinyl plank flooring for basements, condo units, and kitchens — fully waterproof and considered a permanent finished floor under Ontario building standards
- Laminate flooring installed as a permanent floor in new or substantially renovated residential units
- Solid hardwood for new residential construction where the subfloor and structure are new
The common factor is permanence. Flooring installed with the intent that it remain with the structure — not removed and taken away at the end of a rental period — qualifies. This matters for contractors doing work on rental properties, long-term investment homes, and multi-unit residential projects across the GTA, where the distinction between a permanent installation and temporary supply can affect which tax provisions apply.
Common Contractor Mistakes That Cost Money on Tax Rebates
The single most common mistake GTA flooring contractors make on tax rebates: having the supplier invoice made out to the homeowner or end client rather than to the contracting company. The PST exemption and the NHR are both contingent on the contractor being the legal purchaser of the materials. An invoice in the client's name means the contractor cannot claim the exemption or rebate — and cannot recover the HST via ITC.
A second mistake is conflating the GST/HST New Housing Rebate with the PST exemption. The NHR is a federal rebate claimed through the CRA. The PST exemption is a provincial matter that applies at the point of purchase in Ontario. They are separate mechanisms, governed by different legislation, and both need to be handled correctly to maximize the tax benefit on a project.
Contractors working on Airbnb, rental, or investment properties should be especially careful: the NHR is tied to principal residence use. It does not apply to properties held as rental investments or short-term rentals. The PST exemption and ITC recovery may still be available depending on your GST/HST registration status, but the NHR does not apply in these cases.
Contractor Tax Tips for 2026 GTA Projects
With the Ontario Energy Transition Rebate still active as of 2026, the effective HST rate on qualifying new home purchases and substantial renovations in Ontario is currently 12% rather than 13% — the 1% provincial component is rebated through the OETR. The NHR formula adjusts accordingly. Contractors working on new-build projects in 2026 should calculate their rebate entitlement against the effective 12% rate rather than the nominal 13%.
On every project, confirm your GST/HST registration status before purchasing materials. If you are not registered, you cannot claim ITCs and cannot be the named purchaser for rebate purposes. Registering for GST/HST is free and can be done through the CRA's My Business Account portal — it opens up both the ITC recovery route and the ability to claim the NHR on qualifying projects.
Keep supplier invoices for a minimum of six years. The CRA can review GST/HST rebate claims for up to six years after filing. For Ontario PST purposes, maintain records showing the contractor purchased the materials, the materials were destined for a permanent installation, and the installation was completed under a contract.
Our Top Picks at Top Floorings Depot
Whether you're buying for a new-build project, a substantial renovation, or a multi-unit residential job in the GTA, these are the products GTA contractors ask for most when they're building tax-efficient project packages.
Browse our full engineered hardwood collection — European Oak wide-plank in 6.5" and 7.5" widths, in-stock for same-day pickup or GTA-wide delivery.
Browse our SPC vinyl collection — fully waterproof, click-lock, and available in 6mm through 10mm thicknesses to match any project specification.
Browse our laminate collection — German-made options starting from $0.50/sqft, AC3 through AC6 rated, in-stock across the GTA.
Lauzon Essential Hard Maple Smokey Grey — 4¼" Solid Hardwood
A Canadian-made solid hardwood from Lauzon's Essential grade line, this 4¼" Hard Maple in the Smokey Grey finish is a character-grade product with the natural grain variation that GTA homeowners and specifiers look for in premium installations. At ¾" (19mm) thick and random length, it's suitable for nail-down installation on plywood subfloors in new residential construction. Lauzon products are manufactured in Quebec and are a strong selling point for contractors who want to specify Canadian content on new-build projects.
- Species: Hard Maple
- Grade: Essential
- Width: 4¼" — 108mm
- Thickness: ¾" — 19mm, tongue-and-groove
- Length: Random length
- Colour: Smokey Grey
- Origin: Made in Canada (Quebec)
- Pack: 17 sqft/box
- Retail price applies — contractors should inquire about trade pricing at the showroom
This product is a good fit for main floors and living areas in new single-family homes where Canadian content and character-grade aesthetics are part of the specification. Pair it with a plywood subfloor and plan for a 5–7 day acclimation period before installation.
Egger 11mm AC5 Laminate Flooring — EM7201
German-made Egger laminate in the 11mm AC5 grade is one of the strongest value propositions in the GTA contractor market for 2026. The AC5 rating means this product is suitable for heavy commercial use in addition to residential — a direct fit for condo common areas, rental property hallways, and multi-unit residential projects where foot traffic is a daily reality. The 11mm thickness provides solid underfoot feel and effective impact resistance.
- Brand: Egger — Made in Germany
- Thickness: 11mm
- AC Rating: AC5 — heavy residential / moderate commercial
- Plank size: 1,292 x 193mm
- Locking: Valinge — tool-free click installation
- Coverage: 16.15 sqft/box
- Retail price: $0.50–$0.70/sqft
The Egger EM7201 model works well for contractors spec'ing large-area installations in new condo projects or substantial residential renovations where durability per dollar is a priority. Its Valinge locking system reduces installation time, which directly affects your labour margin on the job.
Riche Stone Grey Oak 10mm SPC Vinyl Plank — 20mil Wear Layer
The Riche Stone Grey Oak in the 10mm ultra-thick SPC format with a 20mil wear layer is one of the most spec'd products by GTA contractors for basement apartments, condo fit-outs, and rental property renovations in 2026. The 10mm thickness with an attached 2mm EVA underlayment pad provides both sound dampening and comfort underfoot — two concerns that come up constantly from GTA condo boards and property managers. The 20mil wear layer handles heavy residential and moderate commercial traffic without showing wear.
- Brand: Riche Flooring
- Product: Stone Grey Oak — 10mm Ultra-Thick Series
- Width: 5.9" — narrow plank format
- Length: 48"
- Wear Layer: 20mil (0.5mm) — heavy residential / moderate commercial
- Core: 8mm SPC + 2mm EVA underlayment pad
- Locking: Valinge 5G Drop — precise click-lock installation
- Waterproof: 100% — suitable for basements, bathrooms, and kitchens
- Retail price applies — contractors should inquire about trade pricing
The Stone Grey Oak colour sits between warm and cool, making it versatile across contemporary, transitional, and even industrial interior design schemes common in Toronto and Markham condo developments. This is a product you can specify with confidence across multiple unit types in a single building.
Appalachian Natural Red Oak Excel — 4¼" Solid Hardwood
The Appalachian Natural Red Oak in Excel grade is the baseline premium solid hardwood product for new GTA residential construction. This is a well-known, well-specified product that contractors reach for when the project calls for a traditional look at a reliable price point. The Excel grade means minimal character marks — a clean, consistent floor that photographs well for spec documents and resale listings.
- Brand: Appalachian — Made in Canada
- Species: Red Oak
- Grade: Excel
- Width: 4¼" — 108mm
- Thickness: ¾" — 19mm, tongue-and-groove
- Length: Random length
- Colour: Natural — takes stain evenly
- Pack: 18.9 sqft/box
- Retail price: approximately $5.39/sqft — verify with Top Floorings Depot for current pricing
Contractors building new semi-detached homes or townhouses in Scarborough, North York, and Brampton will find this product hits the sweet spot between specification compliance and budget. Its Canadian manufacturing origin is an increasingly requested feature in new GTA residential projects.
How to Set Up a Contractor Account at Top Floorings Depot
Top Floorings Depot offers contractor trade accounts for qualified flooring professionals in the GTA. A trade account gives you access to volume pricing guidance, product availability ahead of public stock, and a dedicated contact at the showroom who can help you spec the right product for each project type. Setting up an account is done in person at the showroom at 3781 Victoria Park Avenue, Unit 1, Toronto — bring your business registration documents and your HST GST/HST registration number.
For contractors doing new-builds and substantial renovations, having a direct account at Top Floorings Depot also means you can have supplier invoices issued in your company name from the start — which is the foundational requirement for claiming both the PST exemption on materials and the GST/HST New Housing Rebate or Input Tax Credit on qualifying projects.
Claiming HST Rebates Correctly — Key Takeaways for GTA Contractors
Three things every flooring contractor in the GTA should do before the next project starts. First, confirm your GST/HST registration is active and that your supplier invoices will be issued in your company name. Second, determine whether the project qualifies for the New Housing Rebate (new build or substantial renovation with a principal residence buyer) or whether the Input Tax Credit route is more appropriate for your situation. Third, keep records — invoices, contracts, and HST returns — for a minimum of six years.
For questions about specific project situations — rental property renovations, condo assignments, multi-unit developments — consult a CPA with construction and real estate sector experience. Tax rules interact with project structure in ways that require professional advice for your specific situation.
Visit Top Floorings Depot
Top Floorings Depot
3781 Victoria Park Avenue, Unit 1, Toronto, ON M1W 3K5
www.topfloorings.com
Call 416-499-0117 | Text 416-770-8819
Showroom Hours: Monday–Friday 9:00 AM–5:30 PM | Saturday 9:00 AM–4:00 PM | Sunday Closed
We serve homeowners and contractors across Toronto, Scarborough, Markham, North York, Mississauga, Brampton, Richmond Hill, Vaughan, Pickering, Ajax, and the broader GTA. Visit our showroom to see these products in person, speak with our team about project pricing, or set up your contractor trade account. GTA-wide delivery available.
Have you worked with Top Floorings Depot on a project? Leave us a review on Google or tag us on Instagram @topflooringsdepotgta — we love seeing your completed GTA installs.