First-Time Home Buyers' GST Rebate in Alberta: How It Works

In Alberta there is no provincial sales tax on a home purchase, so only federal GST can apply, mainly on new homes. For a first-time buyer of a new home, that GST can be a large number.

This article explains the federal First-Time Home Buyers' GST rebate: who it is for, how much it can be, and how it is usually claimed. Rules and dates can change, so confirm the current details before you sign.

This article covers the law of Alberta.

When GST applies to a home in Alberta

GST is charged at 5% of the value of the consideration on a taxable supply made in Canada, and the buyer pays it. On a new home bought from a builder, GST is payable on the full consideration at final closing, when possession is transferred.

Most resale homes are exempt from GST when sold by someone who is not a builder, though there are exceptions, such as where the seller claimed input tax credits on the last acquisition.

Buyers of new condominium units in Alberta pay GST on the purchase price, and the GST/HST New Housing Rebate can reduce it on a declining scale based on price. A resale condo may also attract GST where the seller used the unit mainly (over 50%) for business, claimed input tax credits for improvements, or the unit was substantially renovated.

When construction or a substantial renovation is substantially completed and the builder first gives possession, the builder is deemed to have sold the home, and tax is calculated on its fair market value. This does not apply to an individual builder who uses the home primarily as a residence for themself, a related individual or a former spouse or common-law partner, and has not claimed an input tax credit.

How much the rebate can be

The First-Time Home Buyers' rebate is up to 100% of the GST (or the federal part of HST) on a new or substantially renovated first home, to a maximum of $50,000.

Because the rebate is measured against the GST you pay, the amount you actually save depends on your purchase price and the rules that apply to your home. Whether you count as a first-time buyer, and whether a particular home qualifies, depends on your situation, so it is worth confirming with a lawyer or accountant.

What counts as a new or renovated home

A substantially renovated home generally means 90% or more of the existing house's interior was removed or replaced. The foundation, exterior and supporting walls, roof, floors and staircases need not be replaced, and garages and crawl spaces do not count.

For a home bought from a builder, the purchase agreement generally must be dated on or after March 20, 2025. Confirm the current eligibility dates on the CRA's pages.

How the rebate is claimed

The builder can usually credit the rebate at closing. Otherwise the buyer applies using Form GST190, or through their CRA account.

A purchaser of a new home may also assign the GST new housing rebate to the builder, so the rebate is credited against the price at closing.

There is also a separate GST/HST New Housing Rebate of 36% of the GST paid, to a maximum of $6,300. It is full at a home value of $350,000 or less, reduced from $350,001 to $449,999, and nil at $450,000 or more. It requires the home to be a primary residence, not a cottage or investment property. A claim must be made within two years after the base date. Ask which rebate applies to you.

What to do next

GST is only one part of the cost of buying. Alberta charges no land transfer tax on a home purchase; buyers instead pay Land Titles registration charges based on the value of the land. The transfer levy is $50 plus $5 for each $5,000 or portion thereof of the value, so any part of a $5,000 increment is charged in full, and a $400,000 value gives $50 + 80 × $5 = $450. A mortgage levy is charged only when a mortgage is registered, and it is calculated on the principal secured, not the purchase price, so a buyer paying cash with no mortgage does not pay it.

Unpaid property tax is a special lien on the land, which is why it is dealt with at closing. On request, the municipality issues a tax certificate showing taxes imposed for the year, taxes owing, tax arrears and any deferred taxes, which lawyers use for the tax adjustment. How the adjustment is shared between you and the seller is set by your purchase contract, so check it. Title insurance is not required by the standard Alberta residential purchase contract, which does require a Real Property Report.

• Check the date on your builder purchase agreement against the eligibility date.
• Ask the builder whether the rebate will be credited at closing.
• Confirm with your lawyer whether the GST is included in the price or added to it.
• Keep your paperwork in case you must apply using Form GST190.
• Ask your lawyer how property tax will be adjusted under your purchase contract.
• Ask an accountant if your situation is unusual.

Frequently asked questions