BC GST calculator for new homes.

When GST applies

GST is charged at 5% on new or substantially renovated housing. That covers new construction, presale condos and townhomes purchased from a developer, and resale homes that have been gutted and rebuilt to the point that almost everything except the foundation, exterior walls, supporting walls, floor, roof, and staircase has been replaced.

GST does not apply to typical resale (used) housing. If you are buying a house that has been lived in before and is being sold without major reconstruction, no GST is payable on the purchase price.

Edge cases: strata hotels, short-term rentals run as commercial operations, and mixed-use properties can attract GST even on resale. If your file involves any of these, talk to us before signing.

The two rebates

BC homebuyers may qualify for one of two federal GST rebates that reduce the net GST payable. They are not stackable — you take whichever applies to you.

1. The First-Time Home Buyer GST Rebate is new for contracts signed on or after March 20, 2025 (in effect through January 1, 2031). It pays up to $50,000. Full rebate on homes priced at $1,000,000 or below — net GST after the rebate is zero. Phases out linearly between $1,000,000 and $1,500,000. No rebate on homes at or above $1,500,000.
2. The GST New Housing Rebate is the long-standing rebate for non-FTHB owner-occupiers. 36% of the GST paid, capped at $6,300 (the cap is reached at a $350,000 purchase price). Phases out between $350,000 and $450,000. No rebate at or above $450,000.

Investors and rental purchasers do not get either rebate at closing. A separate New Residential Rental Property Rebate is available for landlords who hold the property for at least a year, but it is claimed directly from the Canada Revenue Agency after closing — the full GST is payable on the closing day.

FTHB eligibility — the four tests

• You are at least 18 years old.
• You are a Canadian citizen or permanent resident at the time the contract is signed.
• Neither you nor your spouse or common-law partner has owned a principal residence anywhere in the world during the calendar year of the purchase or the four preceding calendar years.
• You have not previously received the FTHB GST rebate.

All four tests must be met. If you are buying with a partner, the partner has to qualify too — one disqualifying co-purchaser ends the rebate for both of you.

A worked example

Two people buy a $1,250,000 presale condo in Vancouver. Both are first-time buyers and meet all four tests. The math:

• Contract price: $1,250,000
• GST at 5%: $62,500
• FTHB rebate at the 50% phase-out point ($1.25M is halfway between $1M and $1.5M): $25,000
• Net GST payable at closing: $37,500

Same condo without FTHB status (because they bought a small condo five years ago that they still own): no FTHB rebate, no regular rebate (price is well above the $450,000 cutoff), so the full $62,500 is owed at closing.