Buyer Education — Tri-Cities BC
GST on Homes in BC: When You Pay It, When You Don’t, and How to Reduce It
One of the most misunderstood costs in a BC real estate transaction is GST. Some buyers budget for it unnecessarily; others are blindsided by it entirely. The rule is actually straightforward once you understand the core distinction: whether the home is new or resale. This guide breaks down exactly when the federal 5% Goods and Services Tax applies to a home purchase in British Columbia, when it doesn’t, and what rebates may be available to reduce your exposure. For a deeper dive, Sebastian’s GST on new homes BC guide covers the full picture in one place. Browse current Tri-Cities listings →
The clean rule every BC buyer should know is this: resale homes — meaning previously occupied homes sold by a private individual — are exempt from GST. If you’re buying a detached house, townhouse, or condo in Coquitlam, Port Moody, or Port Coquitlam that has been lived in before, you will not pay GST on the purchase price. This applies regardless of the price of the home or how recently it was built, as long as it has been used as a place of residence.
GST does apply, however, to new construction homes, substantially renovated properties, and most presale condos and townhouses. In the Tri-Cities, where presale development has been active for years — from Port Moody’s Inlet District to Coquitlam’s Burke Mountain — this affects a significant number of buyers. The 5% GST is calculated on the contract purchase price, which on a $900,000 presale unit means $45,000 in additional tax before any rebate. That is a cost that must be factored into your financing and closing budget from day one.
Substantially renovated homes are a category that catches buyers off guard. If a seller has gutted and rebuilt 90% or more of a home’s interior, CRA may treat it as equivalent to new construction for GST purposes — even if the exterior walls are decades old. This is relatively uncommon but worth asking about if you’re purchasing a heavily renovated property. Your real estate lawyer should confirm the GST status of any such home before closing.
Assignment purchases — where you buy a presale contract from the original buyer rather than directly from the developer — can also attract GST on the assignment fee itself, and in some cases on the full purchase price depending on the circumstances. Assignment transactions have their own tax complexity, and buyers should get qualified legal and tax advice before proceeding. See Sebastian’s detailed guide on GST for new homes in BC for more context on how assignments are treated. For the full mechanics of an assignment — developer consent, fees, GST, PTT and how the deal closes — see how presale assignments work in BC.
Related resources
Helpful tools & guides
Key takeaways
If the home you are buying has been previously occupied as a primary residence and is being sold by a private individual, GST does not apply to the purchase price. This is true across all price points and all property types — detached, townhouse, or condo — in the Tri-Cities and across BC. You do not need to apply for an exemption; it simply does not apply. This is why resale and new construction budgets look very different even when the sticker prices are similar.
GST at 5% applies to the full purchase price of a new home bought from a builder, including presale assignments in most cases. On a $750,000 presale, that is $37,500 in GST before any rebate. Developers will often note in the contract whether the price is ‘GST included’ or ‘plus GST’ — read this carefully because it changes your total cost substantially. If your contract says ‘plus applicable taxes,’ make sure your lender and budget account for the full gross amount.
The federal government offers a New Housing Rebate that returns a portion of the GST paid on qualifying new homes. The rebate amount and the price thresholds above which it phases out have shifted over time, so quoting specific numbers in a guide like this would quickly become inaccurate. Use the GST rebate calculator to get current figures based on your actual purchase price. Builders often credit the rebate to you directly at closing if you qualify — but only if you assign the rebate to them, which is standard practice for owner-occupied purchases.
CRA’s definition of ‘substantially renovated’ is specific: 90% or more of the interior of the existing building must have been removed or replaced. If a property meets this threshold, the vendor may be required to collect GST on the sale even though the building is not technically new. As a buyer, always ask your real estate lawyer to confirm the GST status of heavily renovated properties before you waive subjects or close. Being wrong about this is an expensive surprise.
Frequently asked questions
Common questions answered
Do you pay GST on a house in BC?
It depends on whether the home is new or resale. Resale homes — previously occupied properties sold by a private individual — are exempt from GST in BC. New construction homes, substantially renovated homes, and presale condos or townhouses are subject to 5% GST on the purchase price. A partial rebate may be available depending on the price of the home and how it will be used.
Is there GST on a resale condo in BC?
No. A resale condo that has been previously occupied as a place of residence is exempt from GST. This applies whether you are buying in Coquitlam, Port Moody, Port Coquitlam, or anywhere else in BC. GST only applies when you are buying from a builder or purchasing a new unit that has never been lived in.
How much is GST on a new home in BC?
GST is charged at 5% of the purchase price on new homes in BC. On a $800,000 new construction home, for example, that would be $40,000 in GST. However, a partial rebate may apply and reduce the net amount you pay. Because rebate thresholds are updated periodically, use the GST rebate calculator for current numbers specific to your purchase price.
Do you pay GST on a presale condo in BC?
Yes. Presale condos are considered new construction and are subject to 5% GST on the contract purchase price. If you buy a presale assignment from another buyer rather than directly from the developer, GST may also apply to the assignment fee. Always confirm the GST treatment of a presale or assignment purchase with your real estate lawyer before signing. For a full breakdown, see the GST on new homes BC guide.
What is the GST new housing rebate in BC and who qualifies?
The federal New Housing Rebate allows eligible buyers of new or substantially renovated homes to recover a portion of the GST paid. To qualify, the home generally must be purchased as your primary place of residence, either by you or a qualifying relation. The rebate amount and the price ceiling above which it phases out have changed over time, so rather than quoting figures that may become outdated, use the GST rebate calculator to see what applies to your situation today.
Sebastian Czarkowski
REALTOR® · Royal LePage Elite West · Coquitlam, BC
Questions about buying or selling in the Tri-Cities? Reach out directly.
For educational purposes only. Not intended as financial or legal advice.
Sebastian Czarkowski, REALTOR® | Royal LePage Elite West | sebastianrealestate.ca