GST New Housing Rebate in Alberta: Who Qualifies and How Much

Buying a new home or condo in Alberta raises a tax question that resale buyers rarely face: GST. The price from the builder may not be the whole story, and the GST New Housing Rebate can reduce what you pay. Whether it helps you depends on the price of the home and how you plan to use it.

This article explains who qualifies, how the amount is worked out, how the rebate can be credited at closing, and how it differs from the newer First-Time Home Buyers' rebate. Rules and thresholds can change, so confirm current figures with the Canada Revenue Agency (CRA) before you rely on them.

This article covers the law of Alberta.

GST is the only sales tax on a new Alberta home

Alberta has no provincial sales tax, so no PST is charged on a home purchase. Only federal GST can apply, and it applies mainly to new homes and certain other cases.

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, and it is payable at final closing when possession is transferred to you. Note that the CRA policy statement behind that timing dates from 1998 and may not reflect later changes, so ask your lawyer to confirm how it works today.

How much the rebate is worth

The GST/HST New Housing Rebate is 36% of the GST you paid, to a maximum of $6,300. The amount also depends on the value of the home, as the table shows.

If your home's value falls in the reduced range, the rebate is smaller, and at $450,000 or more there is no rebate under this program. Check the exact value used for the test against current CRA guidance.

Who qualifies

The home must be bought or built as your primary place of residence, or that of a relation. A recreational cottage or an investment property does not qualify.

The rebate is aimed at new homes. Resale homes are generally exempt from GST when the seller is not a builder of the home, so there is usually no GST to rebate. There are exceptions, such as where the seller claimed an input tax credit on the last acquisition, for example a unit used in a business. A resale condo may also attract GST where the seller used it mainly for business or it was substantially renovated.

• New home or condo bought from a builder: GST generally applies.
• Resale home from a private owner: generally GST-exempt.
• Resale unit that was a business asset: may attract GST.
• Substantially renovated home (this test relates to the First-Time Home Buyers' rebate, which covers a new or substantially renovated first home): generally 90% or more of the existing house's interior must be removed or replaced.

Assigning the rebate to the builder and making a claim

A purchaser of a new home may assign the New Housing Rebate to the builder, so the rebate is credited against the price at closing. This means you do not wait for a cheque from the CRA.

If you do not assign it, you claim it yourself on Form GST191, and the claim must be made within two years after the base date. Ask your lawyer or the CRA what the base date is for your purchase.

Read your purchase contract closely. Whether the stated price includes GST, and whether the figure is net of an assigned rebate, depends on your contract. Contracts differ, so confirm this with a lawyer before you sign.

How this differs from the First-Time Home Buyers' rebate

The First-Time Home Buyers' GST/HST rebate is a separate, newer rebate. It can return up to 100% of the GST, to a maximum of $50,000, on a new or substantially renovated first home. For a home bought from a builder, the purchase agreement generally must be dated on or after March 20, 2025.

The standard New Housing Rebate is much smaller and ends at a lower price, while the first-time rebate is full at a price of $1 million or less. Which one applies, or whether both do, depends on your situation, so ask a lawyer or accountant before closing.

What to do next

• Confirm from your contract whether the price includes GST.
• Check whether the rebate is assigned to the builder so it is credited against the price at closing.
• Confirm the home will be your primary residence or a relation's.
• Check the current thresholds on the CRA pages.
• Note the two-year claim deadline if you are claiming yourself.
• Ask a lawyer or accountant to compare the rebates before you sign.

Frequently asked questions