Guide
GST rebate on a new home in BC
The first-time home buyers’ GST rebate, the new housing rebate, and BC examples.
Short answer: New homes in BC have 5% GST. If you’re a first-time buyer, the federal first-time home buyers’ GST rebate can cover up to $50,000 of it, which is all of it up to $1 million. Other buyers may get the smaller new housing rebate, but only on homes under $450,000.
The closing costs calculator adds GST and these rebates for a new home.
The two rebates
| Topic | First-time home buyers’ rebate | New housing rebate |
|---|---|---|
| Who | First-time buyers, 18+, citizen or permanent resident, the first person to live in it | Buyers using it as their own or a relative’s main home |
| Most you get | $50,000 | $6,300 (36% of the GST) |
| Full rebate up to | $1,000,000 | $350,000 |
| Gone at | $1,500,000 | $450,000 |
| Timing | Agreement March 20, 2025 to end of 2030 | Ongoing |
BC examples
| New home price | GST at 5% | First-time buyer rebate | GST you pay |
|---|---|---|---|
| $600,000 | $30,000 | $30,000 | $0 |
| $1,000,000 | $50,000 | $50,000 | $0 |
| $1,250,000 | $62,500 | $25,000 | $37,500 |
Between $1 million and $1.5 million the rebate drops in a straight line. A $1,250,000 home is halfway, so you get half the $50,000.
For someone who isn’t a first-time buyer, the new housing rebate is small and only works on cheaper homes. A $400,000 new home has $20,000 GST, and the rebate there is $3,150. At $450,000 it’s gone.
How it gets paid
Often the builder credits the rebate on your statement of adjustments, so it comes off the price at completion. Otherwise you apply to CRA after you close. Your lawyer or notary will know which applies. Ask the builder early how the price is quoted, with GST included or added on top.
Who counts as first-time
For this rebate, you can’t have lived in a home you or your spouse or common-law partner owned in the current year or the four years before. You need to be 18 or older and a Canadian citizen or permanent resident, and you must be the first person to live in the home as your main home. It’s once in a lifetime.
Don’t forget transfer tax
New homes can also qualify for BC’s newly built home exemption from property transfer tax, up to $1.15 million. GST and transfer tax are separate, so you can save on both.
Common questions
Do you pay GST on a new home in BC?
Yes. New homes, including presales and substantially renovated homes, have 5% GST. Resale homes usually don’t. BC has no HST, so it’s just the 5%.
How much is the first-time home buyer GST rebate?
Up to $50,000, which covers all the GST on a new home up to $1 million. It shrinks between $1 million and $1.5 million and is zero at $1.5 million.
When did the first-time buyer GST rebate start?
It applies to agreements signed on or after March 20, 2025 and before 2031, with construction starting before 2031 and the home substantially complete before 2036.
Can I get both GST rebates?
Yes, but they don’t stack past the GST. The first-time buyer rebate is cut by any new housing rebate, so together they cover the GST up to $50,000. Above $450,000 only the first-time buyer rebate is left.
Sources
- First-time home buyers’ GST/HST rebate, Canada Revenue Agency. Checked October 2026.
- RC4028 GST/HST New Housing Rebate, Canada Revenue Agency. Checked October 2026.
Same rules as the calculators. Rules last verified: . See how the calculators work.
Keep reading
Estimates only. Not tax, legal or financial advice.
Rough numbers, not a quote or a lender’s decision. Check with a lawyer or notary and your lender before you rely on them. See Disclosures and Methodology.