When the 5% applies, the New Housing Rebate, and the first-time buyer GST rebate — 2026
The short answer
5% GST applies to newly built or substantially renovated homes in BC — not to resale homes. The GST New Housing Rebate refunds 36% of the GST on homes up to $350,000 (phasing out by $450,000), and a newer First-Time Home Buyers’ GST Rebate can refund up to 100% of the GST on a new home up to $1 million, phasing out by $1.5 million.
GST is a federal 5% tax that applies to the sale of new construction — a newly built house, a brand-new strata unit, or a substantially renovated home. Resale homes are exempt. Because the rebates are tied to price and buyer type, the GST you actually pay on a new home can range from zero to the full 5%.
| Item | How it works |
|---|---|
| Base GST | 5% on the purchase price of a new or substantially renovated home |
| GST New Housing Rebate | 36% of the GST back on homes up to $350,000; partial rebate phasing out by $450,000 |
| First-Time Buyers’ GST Rebate | Up to 100% of the GST on a new home up to $1,000,000; phases out between $1M and $1.5M |
| Resale homes | No GST |
GST applies to new residential real estate: a newly constructed home, a presale or assignment of a new strata unit, or a home that has been substantially renovated. It does not apply to ordinary resale homes, which is why the vast majority of Tri-Cities transactions are GST-free.
On a new home, GST is calculated on the purchase price and is typically due at completion. If you are buying a presale, check whether the advertised price is “GST included” or “plus GST” — it materially changes your budget.
The long-standing GST New Housing Rebate returns 36% of the 5% GST (a maximum rebate of $6,300) on a new home priced up to $350,000. Between $350,000 and $450,000 the rebate phases out, and above $450,000 this particular rebate is no longer available.
Because most new homes in Metro Vancouver exceed $450,000, this rebate alone often does not apply here — which is what makes the newer first-time buyer rebate significant.
A newer measure provides first-time buyers of a new home a rebate of up to 100% of the 5% GST on homes priced up to $1,000,000 (a saving of up to $50,000), with the rebate phasing out between $1,000,000 and $1,500,000 and unavailable above $1.5 million.
For a first-time buyer purchasing new construction in the Tri-Cities, this can be the single largest saving on the transaction. Eligibility and timing conditions apply, so confirm your status before relying on it — and use the dedicated calculator below to estimate the rebate.
Do you pay GST on a house in BC?
Only on new or substantially renovated homes — GST is 5% on new construction. Resale homes are exempt, which covers most purchases. A presale or brand-new strata unit attracts GST; a typical resale house does not.
Is there GST on resale homes in BC?
No. GST applies only to newly built or substantially renovated homes. Standard resale homes do not attract GST (though they may still attract Property Transfer Tax).
How does the GST New Housing Rebate work?
It refunds 36% of the 5% GST (up to $6,300) on a new home priced up to $350,000, phasing out to zero by $450,000. Above $450,000 this rebate no longer applies — which is why the first-time buyer rebate matters in higher-priced markets.
What is the first-time home buyers’ GST rebate?
A newer rebate of up to 100% of the 5% GST on a new home priced up to $1,000,000 (up to $50,000 saved), phasing out between $1M and $1.5M. It can be the largest single saving for a first-time buyer of new construction.
Do I pay both GST and Property Transfer Tax on a new home?
Potentially yes. They are separate taxes — GST (5%) is federal and applies to new homes; PTT is provincial and applies to most transfers. A new home can attract both, though exemptions and rebates may reduce each.
Is GST included in a presale price?
It depends on the contract — some presale prices are “GST included,” others are “plus GST.” Always confirm before budgeting, since 5% on a new home is a significant amount.
This page is general information, not tax, legal, or financial advice, and figures are current as of May 2026 and subject to change. Tax rules have exemptions and conditions that depend on your situation — always confirm with the BC Government, the CRA, and a qualified tax professional or real estate lawyer before acting. Sebastian Czarkowski is a licensed REALTOR® (BCFSA), not a tax advisor.