Money & planning
GST on a new home
Ask what is included, what is payable, and what a rebate assumes.
The price
Is GST included, additional, or shown net of a rebate?
The eligibility
Confirm the buyer, home, agreement dates, and applicable rules.
The timing
Know who applies and when any benefit reaches you.
The basics
Why new homes carry GST
GST is a federal sales tax. In BC the GST rate is 5%. CRA’s rebates are built around newly built or substantially renovated homes. Before you compare a presale with a resale, ask your lawyer or notary whether GST applies to each one.
Two federal rebates can reduce it. The GST/HST new housing rebate is the older one. The first-time home buyers’ (FTHB) GST/HST rebate is newer and larger. CRA’s page for the FTHB rebate shows “Applications are open,” and says it works as a top-up to the new housing rebate when both apply.
Why it matters
The rebate depends on price and timing
CRA says the FTHB rebate can cover up to 100% of the GST, to a maximum of $50,000, on homes at or below $1 million. It shrinks between $1 million and $1.5 million and ends at $1.5 million. Dates matter too. A builder agreement must be signed on or after March 20, 2025, and before 2031, with construction substantially completed before 2036.
How it works
Checking your GST position
Ask how GST is shown
Get the builder to state in writing whether the price includes GST, adds it, or is net of a rebate.
Check your buyer status
CRA requires you to be at least 18 and a Canadian citizen or permanent resident. You must not have lived in a home you or your spouse owned in the current year or the four years before.
Confirm the dates
Note the agreement date and expected completion. They must fit CRA’s windows for the FTHB rebate.
Plan to live there first
CRA requires the home to be your primary place of residence and you to be the first person to live in it after construction.
Agree who claims it
Ask whether the builder will credit the rebate on the price or you will apply to CRA yourself.
Note the deadline
For the new housing rebate, RC4028 sets a two-year filing window. Ask your lawyer or notary for the dates that apply to you.
Avoid these
GST traps on a new home
Assuming a co-buyer qualifies
For a builder sale, CRA tests eligibility on the date ownership transfers. Ask how a co-buyer who does not qualify affects the claim.
Counting the old rebate
RC4028 says the new housing rebate is fully available only at $350,000 or less and ends at $450,000. Check before counting on it.
Ignoring the 2036 line
If construction slips past CRA’s completion deadline, the FTHB rebate may not apply. Ask the builder about schedule risk.
Treating a refund as cash
A rebate you apply for after completion does not help you close. Budget the full GST if the builder will not credit it.
Example
GST on a $900,000 new condo
A hypothetical first-time buyer who meets every FTHB condition, buying a new home for $900,000 with GST added to the price.
| GST at 5% | 5% × $900,000 = $45,000 |
|---|---|
| FTHB rebate limit at or below $1 million | 100% of GST, up to $50,000 |
| Possible FTHB rebate | $45,000 (under the $50,000 cap) |
| GST left after the rebate | $45,000 − $45,000 = $0 |
The phase-out between $1 million and $1.5 million is not shown. Ask your lawyer or notary to confirm how GST appears on your statement of adjustments.
Questions to ask
Questions before you sign
The builder or sales team
- Is GST included, added, or net of a rebate?
- Will you credit the FTHB rebate at completion?
- What is the estimated completion date in the disclosure statement?
Your lawyer or notary
- Does the contract make me repay a rebate I do not qualify for?
- Which date is used to test my eligibility?
- How will GST and rebates show on the statement of adjustments?
Your accountant
- Do all buyers on title meet the first-time test?
- Which forms must I file, and by when?
- What if I rent the home out later?
FAQ
Common questions
Is the first-time home buyers’ GST rebate available now?
CRA’s rebate page currently shows “Applications are open.” Check the CRA page for the current status and forms before you rely on it.
What is the GST rate on a new home in BC?
CRA lists the GST rate for British Columbia as 5%. BC has no HST, so the federal GST is what applies.
Can I get both GST rebates?
CRA says first-time buyers may get the FTHB rebate in addition to the new housing rebate. Where both apply, the FTHB rebate tops up the older one.
Does a new home also get transfer tax relief?
Possibly, through BC’s separate newly built home exemption. Read our newly built home exemption guide.
Does the FTHB rebate apply to a home I build myself?
CRA includes owner-built and substantially renovated homes. For those, eligibility is tested on the earlier of first occupying the home or substantial completion.
Sources
Reviewed October 6, 2026. General information only, not legal, tax or financial advice. Rules change, so confirm the details for your purchase or sale with the official source and your own professionals.
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Common questions
Your questions, answered
Choose a question for a short answer. Open the full guide for the details.
Is the GST rebate the same as BC transfer-tax relief?
No. They are different programs with separate rules. Check each one with your legal and tax advisors.
What if a builder price assumes a rebate?
Have your lawyer explain any assignment and the contract consequences if you do not qualify.
Can I count a future refund toward completion?
Not automatically. Confirm when the rebate is received and how it is treated in the amount needed to complete.
Read the full guide & official sources
Make the tax treatment part of the price conversation.
Before comparing a new home with a resale property, ask for a written explanation of whether GST is included in the advertised price, is payable in addition, or has been presented net of an assumed rebate. Those different presentations can change the cash required.
Identify the relevant rebate.
The first-time home buyers’ GST/HST rebate has its own CRA rules.
It is not the same as BC’s property transfer tax programs. Confirm the buyer, home, price, agreement dates, construction timing, and occupancy requirements with your tax and legal advisors.
Understand who receives it.
Ask whether a rebate will be credited by the builder or whether you must apply separately.
If a price assumes assignment of a rebate to the builder, have your lawyer explain the contract consequences if you do not qualify.
Keep your cash-flow plan realistic.
A possible refund received after completion is not necessarily cash available to complete the purchase.
Ask your conveyancing professional for a written estimate of the amount needed, and confirm how any rebate is accounted for.
Bring these questions to the table.
- What is the full price before and after any applicable GST?
- Which rebate, if any, is assumed in the marketing or contract?
- Have all buyers’ eligibility and the key dates been checked?
- Who applies, who receives the money, and which documents are required?
- What changes if the planned use or ownership structure changes?
No rebate entitlement or tax saving is promised here. Read the current CRA requirements and obtain advice on your specific purchase before relying on a benefit.
Further reading
Sources checked September 29, 2026. Confirm current rules and your individual eligibility before acting.
CRA: First-time home buyers’ GST/HST rebateRelated reading
