If you're buying a resale home in BC, you generally won't pay GST on it — the federal tax applies to the sale of a home only once, when it's first sold as new. But if you're buying directly from a builder or developer, GST is very much part of your closing costs, and it's worth budgeting for correctly from the start.
When GST Applies
GST at 5% applies to the purchase price of a newly constructed or substantially renovated home bought from a builder. It does not apply to previously occupied resale homes purchased through a regular listing.
The Standard GST New Housing Rebate
Most buyers of a new home can claim a rebate of 36% of the GST paid, up to a maximum of $6,300, on homes with a fair market value of $350,000 or less. The rebate is reduced on a straight-line basis for homes priced between $350,000 and $450,000, and disappears entirely at $450,000 and above.
The First-Time Home Buyers' GST Rebate
A newer federal program, made law through Bill C-4 in 2026, goes much further for eligible first-time buyers. For agreements of purchase and sale signed on or after March 20, 2025 and before 2031, first-time buyers can have 100% of the GST eliminated on new homes valued up to $1,000,000, phasing out on a straight-line basis to $1,500,000.
To qualify, you — and your spouse or common-law partner, if applicable — generally must not have owned and lived in a home, in Canada or abroad, during the current calendar year or the four preceding years. Construction must begin before 2031 and be substantially complete before 2036.
On a $900,000 new condo, a qualifying first-time buyer goes from a $45,000 GST bill to $0.
Builder-Credited vs. Self-Claimed Rebates
Many builders will credit the applicable rebate directly against your purchase price at closing, so you never see the full GST amount change hands. If yours doesn't, you can apply directly to the CRA using form GST190 after closing. Either way, it's worth confirming which approach your builder is using well before your completion date.
Estimate Your GST
Run your purchase price through our calculator to see your net GST payable under either program.
This article is for general information only and isn't a substitute for advice on your specific transaction. Eligibility rules are precise and depend on your history and the agreement date — confirm your position with the CRA or with us before your purchase completes.
