Do You Pay GST on a New Home in British Columbia?

Buying a newly built or substantially renovated home is different from buying a resale home, because GST generally comes into the picture. Many buyers are surprised to find it in the contract, and others are not sure whether it is already built into the price.

This article explains the federal rebates that may reduce GST on a new home, who qualifies and what to ask your builder. Federal rules apply here alongside British Columbia's property transfer tax, and the details depend on your contract, so confirm your situation with a lawyer or accountant.

This article covers the law of British Columbia.

Why GST matters on a new home

The rebates described below relate to new construction and substantial renovations. Two federal rebates can reduce what you ultimately bear: the GST/HST new housing rebate and the newer first-time home buyers' GST/HST rebate.

Whether the GST is shown separately or built into the price is a matter of your contract. Read the purchase agreement carefully and ask the builder to explain it in writing.

The GST/HST new housing rebate

The rebate is 36% of the GST (or the federal part of HST) paid, capped at $6,300. It is reduced on a sliding scale between $350,000 and $450,000 and is unavailable at $450,000 or more.

Only individuals qualify, and the home must be the claimant's or a relation's primary place of residence. For homes bought from a builder, the $450,000 test uses the purchase price before tax.

Because this rebate is unavailable at $450,000 or more, it is worth checking your purchase price against that threshold early. If your price is above it, the first-time buyer rebate described below may still be worth looking at.

The first-time home buyers' GST/HST rebate

This rebate gives a full or partial rebate of GST (or federal HST) on a newly constructed or substantially renovated home, up to $50,000. It applies to agreements entered on or after March 20, 2025, or for owner-built homes where construction started on or after that date.

The rebate is reduced from $1,000,000 and is unavailable at $1,500,000 or more. The CRA began accepting applications on March 17, 2026. Eligibility has further conditions that are worth confirming with the CRA or an accountant before you rely on it.

Substantial renovations and how to apply

For the new housing rebate, a substantial renovation requires at least 90% of the existing house's livable interior to be removed or replaced. The foundation, exterior and interior supporting walls, floors, roof and staircases are excluded from that test. The purchase price for the rebate test excludes GST/HST and land transfer taxes.

• Apply within two years of taking ownership or finishing construction for the first-time buyer rebate.
• The builder may credit the rebate at closing using Form GST190.
• Otherwise, you apply to the CRA using GST190, or GST191 for an owner-built home.

What to do next

Before you sign, work out which rebate, if any, fits your purchase, and who will claim it. Remember that GST is separate from property transfer tax, which is also payable on a new home unless an exemption applies.

The buyer pays property transfer tax when applying to register at a land title office, and must file a return whether or not the transaction is exempt. A newly built home exemption may apply: it is a full exemption if the fair market value is $1,100,000 or less for titles registered on or after April 1, 2024, and a partial exemption between $1,100,000 and $1,150,000. To claim it, you generally need to be a Canadian citizen or permanent resident buying as your principal residence, although a buyer who is not yet a citizen or permanent resident but becomes one within 12 months of registration may apply for a newly built home refund. You must also move in within 92 days of registration and live there as your principal residence for the rest of the first year; if you move out early, you repay part of the exemption based on days away, although the owner's death, or a transfer under a separation agreement or Family Law Act order in the first year, keeps the full exemption. How these rules apply to your purchase depends on your situation, so it is worth confirming with a lawyer.

• Ask whether the stated price includes or excludes GST.
• Ask the builder whether they will credit any rebate at closing.
• Check the agreement date against March 20, 2025 for the first-time buyer rebate.
• For the new housing rebate on a home bought from a builder, compare the price before tax with the $450,000 threshold, and check the price against the $1,000,000 threshold for the first-time buyer rebate.
• Keep your contract, statement of adjustments and proof of occupancy.
• Speak with a lawyer or accountant if the structure is unusual, such as an assignment or owner-built home.

Frequently asked questions