Are There PST or Other Sales Taxes on Buying a Home in Alberta?

If you are used to buying things in other provinces, you may expect a provincial sales tax or a land transfer tax on a home. Alberta works differently, and that is good news for your closing costs. It does not mean a home purchase is free of tax or government charges.

This article explains which taxes do not apply, which can, and which registration charges and property tax matters come up at closing. Your own situation, especially whether the home is new or resold, changes the answer, so treat this as a starting point.

This article covers the law of Alberta.

No PST and no land transfer tax in Alberta

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

Alberta also charges no land transfer tax on a home purchase. Buyers instead pay Land Titles registration charges based on the value of the land, which is generally the purchase price.

When GST applies to a home

GST is a federal tax charged at 5% of the value of the consideration on a taxable supply made in Canada, and the buyer pays it. For homes, the key question is whether you are buying new or resale.

• New homes from a builder: GST is payable on the full consideration and is payable at final closing, when possession is transferred to you.
• New condominium units: buyers pay GST on the purchase price, though the New Housing Rebate can reduce it on a declining scale based on price.
• Resale homes: the sale of a residential complex is generally exempt from GST when the seller is not a builder of the complex.

The resale exemption has exceptions. It does not apply if the seller claimed an input tax credit on the last acquisition of the complex, such as a unit used in a business. For resale condos, CMHC states GST may apply where the seller used the unit mainly for business, claimed input tax credits for improvements, or the unit was substantially renovated.

There is also a narrow exception where a GST-registered buyer purchased from a prior taxable seller within one year, no individual has lived in the home since construction or last substantial renovation, the sale follows a right to purchase in the earlier agreement, and an election is filed.

Builders, renovations and self-supply

When a builder finishes construction or a substantial renovation and first gives possession or occupancy, the builder is generally deemed to have sold the home, and tax is calculated on its fair market value. This is a builder-side rule, but it explains why new and substantially renovated homes are treated differently from ordinary resales.

It 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.

GST rebates for new homes

Two federal rebates may reduce GST on a new home. Which one fits, if either, depends on the price, how you will use the home and when the contract was signed.

The New Housing Rebate requires that the home be bought or built as your (or a relation's) primary place of residence. A recreational cottage or investment property does not qualify. A claim must be made within two years after the base date.

For the First-Time Home Buyers' rebate on a home bought from a builder, the purchase agreement generally must be dated on or after March 20, 2025. The builder can usually credit the rebate at closing, otherwise you apply using Form GST190 or through your CRA account. A home counts as substantially renovated generally when 90% or more of the existing house's interior has been removed or replaced.

You can also assign the New Housing Rebate to the builder, so it is credited against the price at closing.

Charges that still apply: Land Titles levies and property tax

The transfer levy is $50 plus $5 for each $5000 or portion thereof of the value of the land. The buyer named in the transfer pays it. Because any part of a $5,000 increment is charged as a full increment, the amount rounds up. This rate applies to submissions received by the Land Titles Office on or after October 20, 2024. Before that, the rate was $2 per $5,000 for transfers and $1.50 per $5,000 for mortgages.

If you take out a mortgage, a separate levy of $50 plus $5 for each $5000 or portion thereof of the principal secured applies when the mortgage is registered. A buyer paying cash with no mortgage does not pay it, and it is based on the amount secured, not the purchase price. If the Registrar does not accept the transfer, the levy is returned.

Property tax is a special lien on the land and improvements, which is why unpaid taxes are dealt with at closing. A tax certificate shows taxes imposed for the year, taxes owing, tax arrears and any deferred taxes, and lawyers use it for the tax adjustment. How taxes are split between you and the seller is set by your purchase contract, so check it.

What to do next

• Confirm whether the home is new, resale or substantially renovated, since that decides whether GST is in play.
• Ask the seller or builder in writing whether GST is included in the price, and read your contract for the answer.
• If it is a new home, find out whether you qualify for a rebate and whether the builder will credit it at closing.
• Ask your lawyer to estimate the Land Titles levies for the transfer and any mortgage.
• Request the property tax certificate and review how the contract adjusts taxes.
• Budget for property taxes as an ongoing cost after you move in.

Tax rules and fee schedules change, so a lawyer or accountant can confirm current amounts before you sign. Fees are listed in the Tariff of Fees Regulation (AR 120/2000) and must be paid at submission.

Frequently asked questions