A newly built or substantially renovated home in B.C. is generally subject to 5% federal GST. An eligible buyer or owner-builder may recover part of that tax through a federal new housing rebate; eligible first-time buyers may qualify for additional relief. 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.
This guide retains its 2010 address. 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. The current guidance below was checked October 16, 2026. B.C. historical record.
First, 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 CRA explains the alternatives, including 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 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. 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.
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
- 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.
- Read the purchase agreement and closing statement. Determine whether an eligible rebate is paid or credited by the builder or must be claimed directly. Do not claim the same amount twice. A buyer can be liable to repay a builder credit if not entitled to it.
- 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.
- Check the filing deadline for the specific rebate and transaction. Builder purchases and owner-built homes have different triggering dates; the federal first-time and ordinary programs must each be checked under their own rules. CRA’s ordinary rebate guide and first-time rebate guidance describe the relevant dates and application process.