GST rebate on a new home in BC

Common questions about GST on a new home

• Can a first-time buyer avoid GST on a new home now?

  Yes, if the home and the buyer qualify. The First-Time Home Buyers’ GST/HST rebate returns 100% of the 5% GST on a new home valued up to $1,000,000, to a maximum of $50,000. Between $1,000,000 and $1,500,000 the rebate shrinks in a straight line. At $1,500,000 or more there is no rebate. So a first-time buyer of an $850,000 townhouse who would have paid $42,500 in GST pays nothing. The purchase agreement must be signed on or after March 20, 2025 and before 2031. The rebate is claimed, not automatic. Source: Canada Revenue Agency, First-time home buyers’ GST/HST rebate (canada.ca).

  The reduced rebate is $50,000 × ($1,500,000 − price) ÷ $500,000. The Canada Revenue Agency (CRA) gives its own example: a $1,250,000 home gets $25,000. You must be at least 18 and a Canadian citizen or permanent resident. You must not have lived in a home that you or your spouse or common-law partner owned, in the calendar year you take ownership or the previous four calendar years. Neither of you can have claimed this rebate before. The home must be newly built or substantially renovated, be your primary residence, and you must be its first occupant. Construction must start before 2031 and be substantially complete before 2036. Source: CRA, First-time home buyers’ GST/HST rebate: who can apply.
• What is the older GST New Housing Rebate, and does it still apply?

  It still exists, but a new home priced at $450,000 or more gets nothing from it. The older rebate returns 36% of the GST, to a maximum of $6,300, on a new home priced at or under $350,000. Between $350,000 and $450,000 it shrinks to zero. The price tested includes any amount paid for an assignment. Where both rebates apply, the first-time buyer rebate tops up the older one. Source: CRA, Guide RC4028, GST/HST New Housing Rebate (canada.ca).
• How does GST work on a $1.2M new home for a first-time buyer?

  The GST is 5% of $1,200,000, which is $60,000. The rebate is $50,000 × ($1,500,000 − $1,200,000) ÷ $500,000, which is $30,000. The net GST is $30,000. A repeat buyer at the same price pays the full $60,000, because the older rebate stops at $450,000. Source: CRA, First-time home buyers’ GST/HST rebate: what is the rebate (canada.ca).
• Does any rebate apply to investors or rental properties?

  Not the first-time buyer rebate: it requires a primary residence. A landlord may claim the GST/HST new residential rental property rebate on form GST524, but only if the unit is worth under $450,000. The exception is purpose-built rental housing. It gets a rebate of 100% of the GST, with no price limit. The building needs at least 4 units that each have a private kitchen, bath and living area, or 10 or more units. At least 90% of the units must be held for long-term rental. Construction must start after September 13, 2023 and before 2031, and finish before 2036. Condominium units, single-unit housing, duplexes and triplexes do not qualify. Source: CRA, GST/HST new residential rental property rebate (canada.ca).
• How is GST handled on a presale assignment?

  It is taxable. Since May 7, 2022, every assignment sale of new or substantially renovated housing is subject to GST. The person assigning charges 5% on the amount payable for the assignment, less any part the assignment agreement states in writing is reimbursement of the deposit paid to the builder. If the agreement does not say so in writing, nothing is subtracted. The buyer also pays GST to the builder. The price paid for the assignment counts toward the older rebate’s $450,000 limit. Source: Excise Tax Act, s. 192.1 (laws-lois.justice.gc.ca); CRA, GST/HST Info Sheet GI-120 (canada.ca), which still describes the older rule.
• How do I actually claim the rebate?

  Usually the builder files it. If you and the builder agree, the builder pays or credits the rebate and files form GST190 with your statement of adjustments and signed purchase agreement. If the builder does not, you file form GST190 yourself within 2 years of the date ownership transferred to you. You can file online in your CRA account or by mail. Keep your records. Source: CRA, First-time home buyers’ GST/HST rebate: home purchased from a builder (canada.ca).

  The CRA has said it is processing a higher than usual volume of housing rebates, so payment can take longer than usual. Check the CRA page for the current wait.
• I closed before the rebate became law. Have I missed it?

  Probably not. The law received Royal Assent on March 12, 2026, and the rebate covers agreements signed from March 20, 2025. If your builder filed form GST190 for the older rebate only, you can file another application for the first-time buyer rebate. If no application was filed, you can file one yourself. Either way the clock is 2 years from the date ownership transferred to you, so a January 2026 closing runs to January 2028. Source: CRA, First-time home buyers’ GST/HST rebate: home purchased from a builder (canada.ca).

  Bring the purchase agreement, which shows the signing date, and the statement of adjustments, which shows the GST paid. The CRA treats an earlier application and a later top-up as separate filings. Check the CRA page for the current forms.
• How does the GST rebate interact with the BC Newly Built Home PTT exemption?

  They are separate programs on separate taxes. The GST rebate covers the federal 5% GST. The BC exemption covers the provincial Property Transfer Tax. It is full up to a fair market value of $1,100,000 and falls to nothing at $1,150,000. You must be a Canadian citizen or permanent resident, use the home as your principal residence, and move in within 92 days. The land must be 0.5 hectares (1.24 acres) or smaller, with only residential improvements on it. A first-time buyer of a $1,000,000 new home can qualify for both. Your lawyer’s statement of adjustments lists each one. Source: Government of British Columbia, Newly built home exemption (gov.bc.ca).