GST on New Homes in BC: Rebates and Eligibility

GST on new homes in BC is generally 5%; the same federal tax generally applies to substantially renovated homes. The ordinary federal new housing rebate generally returns 36% of the GST, up to $6,300, phasing down for homes between $350,000 and $450,000, with no rebate at $450,000 or more. Eligible first-time buyers may instead recover up to 100% of the GST, capped at $50,000, on homes up to $1 million, with partial relief up to $1.5 million. The amount depends on the transaction, value, dates and intended use, so a builder’s advertised price should not be assumed to include a rebate. CRA housing guide; CRA rates.

GST on new homes in BC: identify the transaction

A new home bought from a builder, a home built on land you own, a major renovation, a home on leased land and a co-operative housing share use different eligibility and filing rules. The ordinary new housing rebate generally concerns a home acquired or built for use as the individual purchaser’s or a qualifying relation’s primary residence. Each transaction must meet its own conditions; a rental investment is not automatically eligible for an owner-occupier rebate. The ordinary rebate can cover an individual’s or their relation’s primary residence. For the first-time buyer rebate, where two or more individuals buy, the home must be for use as the primary residence of any of them, and the individual who applies must be a first-time home buyer. Corporations and partnerships cannot claim these rebates, and an investment property is not a primary residence, though a landlord may qualify for the separate new residential rental property rebate.

A previously occupied resale home is generally exempt from GST/HST, but exceptions can apply. Substantial renovations and other circumstances can change the analysis. Verify the seller’s treatment and contract rather than treating every property described as “resale” as automatically exempt. CRA housing guide.

Ordinary federal new housing rebate

For a qualifying purchase of a home and land from a builder, the ordinary federal rebate is generally 36% of the GST or federal HST part, up to $6,300, before any phase-out. The rebate is not reduced by the value phase-out when the purchase price is $350,000 or less; it decreases on a straight-line basis above $350,000 and is unavailable at $450,000 or more. Owner-built homes and leased-land transactions use different valuation details; consult the CRA guide for the appropriate calculation. CRA guide RC4028.

Example: Assume a qualifying B.C. buyer purchases a new home and land from a builder for $300,000 before GST, is eligible for the ordinary federal rebate, and receives no first-time-buyer rebate. GST is $15,000. The ordinary rebate is 36% × $15,000 = $5,400, leaving $9,600 in GST after the rebate. Closing adjustments, other costs and the timing of payment or credit are excluded. This is an illustration, not a promise of entitlement.

Federal first-time home buyers’ rebate

For a qualifying purchase of a home and land, or an owner-built home under its corresponding value test, valued up to $1 million, the first-time home buyers’ rebate together with the ordinary federal rebate, if applicable, can return up to 100% of the GST or federal HST portion, capped at $50,000. It is a rebate, not a GST exemption, though eligible combined rebates can reduce net GST owing to zero, subject to the cap and conditions. Relief phases down for values above $1 million and below $1.5 million; no first-time rebate is available at $1.5 million or more. Leased-land and co-op transactions have their own value tests. CRA first-time buyer memorandum.

First-time buyer is a defined term, not simply someone who has never owned a home. Generally the individual must be at least 18, be a Canadian citizen or permanent resident, and not have lived in a home owned by them or their spouse or common-law partner as a primary residence during the relevant calendar year or preceding four calendar years. Neither partner may have previously received the first-time buyer rebate. The relevant date for the test depends on the transaction. CRA eligibility.

For a home and land purchased from a builder, the agreement must generally be entered into from March 20, 2025 through December 31, 2030, construction must begin before 2031 and be substantially completed before 2036, and ownership must transfer before 2036. The purchaser must intend to use it as their primary residence and be the first person to occupy it as a residence after substantial completion. Additional rules apply, including for changed or assigned agreements. For an owner-built home, the construction-start and occupancy tests differ; check the CRA’s scenario-specific conditions.

Between $1 million and $1.5 million, the rebate phases down on a straight-line basis: relief = $50,000 × ($1,500,000 − purchase price) ÷ $500,000. For example, a $1,200,000 new home would qualify for $50,000 × ($1,500,000 − $1,200,000) ÷ $500,000 = $30,000 in first-time buyer relief, on top of the GST of $60,000 otherwise payable on that price. On a purchase with more than one buyer, only the person applying must qualify as a first-time home buyer; the CRA says one qualifying purchaser can claim even if other co-purchasers do not qualify. The ordinary rebate may also apply if its conditions are met.

How much GST you get back on a new BC home

The table below shows GST on new houses in BC at several price points, combining the ordinary rebate and first-time buyer relief described above. Figures assume a qualifying purchase of a home and land from a builder, with eligibility otherwise assumed.

Home and land bought from a builder; eligibility assumed. The ordinary rebate column is $0 once the price reaches $450,000, and the first-time buyer column is $0 once the price reaches $1.5 million. BC generally does not charge provincial sales tax (PST) on the purchase price of a new home — PST is paid by the builder on construction materials, not charged to the buyer on the sale of the home itself. gov.bc.ca small business guide to PST.

GST rebate and BC property transfer tax

The federal GST rebates above are separate from British Columbia’s property transfer tax (PTT) and its own exemptions, including a first-time home buyers’ PTT exemption. Check current PTT exemption thresholds and conditions directly with the province. gov.bc.ca property transfer tax exemptions.

Ontario: a separate provincial rebate

Ontario has separate provincial HST rebate programs with different dates and eligibility conditions. For the ordinary rebate, enhanced relief, first-time buyer rules and their interaction with federal rebates, read our guide to HST rebates on new homes in Ontario. This page focuses on GST on homes in B.C.

How to prepare a claim

1. Identify the right program and form. CRA generally uses GST190 for a builder purchase and GST191 with its worksheet for an owner-built home; rental claims use a different form, and the same housing forms include first-time buyer sections. Use the current CRA instructions for your transaction rather than choosing a form from the purchase price alone.
2. Check whether the builder credits the rebate at closing. When you buy from a builder, the builder may pay or credit the ordinary and first-time buyer rebates you are entitled to, and then sends the application to the CRA. If the credit is not given at closing, you may still have up to two years after ownership transfers to get the application to the builder; if the builder does not pay or credit the rebate, you file directly with the CRA. A contractor cannot pay or credit the rebate on an owner-built home. Do not claim the same amount twice; if the builder knew or ought to have known that the buyer was not entitled to the rebate, or that the amount credited was more than the buyer’s entitlement, the builder and buyer are jointly and severally liable to repay it to the CRA.
3. Keep evidence. Retain the signed agreement, closing statement, invoices and GST/HST paid, dates of construction and completion, and records supporting intended and actual occupancy. Owner-builders should retain itemized construction records.
4. Check the filing deadline for the specific rebate and transaction. For a home and land bought from a builder, a direct claim is due within two years after ownership transfers to you; for a house on leased land, within two years after possession transfers. Owner-built deadlines run from a base date set by the CRA’s transaction-specific rules. CRA’s ordinary rebate guide and first-time rebate guidance describe the relevant dates and application process.

Older B.C. HST rebate figures

B.C.’s former 12% HST applied from July 1, 2010 through March 31, 2013, before separate GST and PST returned. The historical B.C. HST rebate figures from that period are not today’s GST rebate. B.C. historical record.