BC GST New Home
Rebate & Exemption Calculator
Calculate the GST you'll pay on a new home in BC — including the new $50,000 first-time buyer exemption (Bill C-4, now law).
Net GST Owing
$0
Enter a purchase price to see your estimate
Rebates and exemptions only apply to new homes used as a primary residence. First-time buyer exemption requires purchase agreement dated March 20, 2025 or later. Consult a tax professional for your specific situation.
When Do You Pay GST on Real Estate in BC?
In British Columbia, the 5% federal GST applies to real estate purchases in specific situations. Most resale homes are GST-exempt — it's primarily new construction where GST comes into play.
GST Applies
- New construction homes (never lived in)
- Substantially renovated homes (90%+ of interior replaced)
- Pre-sale/pre-construction condos and townhomes
- Builder-owned spec homes
GST Does NOT Apply
- Resale homes (previously occupied)
- Used homes sold by individuals
- Most residential property transfers
Example: If you're buying a brand new townhome in Surrey for $800,000, you'll pay $40,000 in GST (5%). However, you may be eligible for rebates that significantly reduce this amount.
First-time buyer? Canada's new $50,000 GST exemption is now law (March 2026). Eligible first-time buyers pay zero GST on new homes up to $1,000,000.
First-Time Buyer GST Exemption (Bill C-4)
As of March 12, 2026, Bill C-4 is law. First-time home buyers purchasing a new home as their primary residence can now save up to $50,000 in GST.
First-Time Buyer Exemption (New)
- 100% GST exemption on homes up to $1M
- Maximum saving: $50,000
- Sliding scale from $1M–$1.5M
Legacy Federal Rebate
- For non-first-time buyers only
- Maximum rebate: $6,300
- Phases out above $350K–$450K
| Purchase Price | GST (5%) | First-Time Buyer Saving | Net GST |
|---|---|---|---|
| $500,000 | $25,000 | −$25,000 | $0 |
| $700,000 | $35,000 | −$35,000 | $0 |
| $900,000 | $45,000 | −$45,000 | $0 |
| $1,000,000 | $50,000 | −$50,000 | $0 |
| $1,200,000 | $60,000 | −$30,000 | $30,000 |
| $1,500,000 | $75,000 | $0 | $75,000 |
First-time buyers on new homes up to $1,000,000 in BC now pay zero GST. For non-first-time buyers, the legacy federal rebate (max $6,300) still applies on homes under $450,000, along with the BC provincial rebate below.
BC Provincial New Housing Rebate (2026)
British Columbia offers an additional rebate on top of the federal rebate. This is the rebate that matters most for Surrey buyers, since it applies to homes up to $1,100,000.
Rebate Amount
- 1.5% of the purchase price
- Maximum rebate: $18,750
Eligibility
- Must be your primary residence
- You or family member must be first occupant
- Under $1,150,000 for any rebate
Phase-Out Thresholds
| Purchase Price | BC Rebate (1.5%, max $18,750) |
|---|---|
| $600,000 | $9,000 |
| $800,000 | $12,000 |
| $1,000,000 | $15,000 |
| $1,100,000 | $16,500 |
| $1,250,000 | $0 |
GST Comparison at Surrey Price Points
Here's how much GST you'd pay at common Surrey new-build prices — comparing first-time buyers vs. non-first-time buyers:
| Price | GST (5%) | First-Time Buyer Net GST | Non-FTHB Net GST |
|---|---|---|---|
| $500,000 | $25,000 | $0 | $17,500 |
| $700,000 | $35,000 | $0 | $24,500 |
| $900,000 | $45,000 | $0 | $31,500 |
| $1,000,000 | $50,000 | $0 | $35,000 |
| $1,200,000 | $60,000 | $30,000 | $60,000 |
| $1,500,000 | $75,000 | $75,000 | $75,000 |
Key takeaway: First-time buyers on new homes up to $1,000,000 now pay $0 GST. That's a saving of $25,000–$50,000 that you would have paid in full before Bill C-4.
How Builders Handle GST on New Homes
When buying a new home from a builder or developer, the GST is typically handled in one of two ways:
GST Included in Price
The advertised price includes GST, and the builder assigns the rebate to themselves. You don't receive the rebate directly — it's already factored into your purchase price.
GST Added to Price
The advertised price is before GST. You pay GST at closing and apply for the rebate yourself afterward.
What to ask your builder:
- Is GST included in the purchase price?
- Who is claiming the GST rebate — you or the builder?
- If the builder claims the rebate, has it been factored into the price?
Important: If you're claiming the rebate yourself, you must file within 2 years of the home's completion or purchase.
How to Apply for the GST New Housing Rebate
If you're claiming the rebate yourself (rather than having the builder claim it), here's the process:
Determine Eligibility
- New construction or substantially renovated home
- Primary residence for you or a family member
- Within price thresholds for applicable rebates
Gather Documents
- Purchase agreement
- Statement of adjustments from lawyer
- Proof of occupancy
- GST payment receipts
Complete the Forms
- Federal: GST190 New Housing Rebate Application
- BC: FIN 76 BC New Housing Rebate Application
Submit Your Application
- File within 2 years of occupancy or purchase
- Mail or submit electronically to CRA
- Processing: 4–8 weeks (federal), 6–10 weeks (provincial)
Most buyers have their lawyer or the builder handle this paperwork. If you're working with me on a new construction purchase, I can connect you with professionals who manage this process.
GST on Investment Properties (No Rebate)
The GST new housing rebates are only available for homes used as a primary residence. If you're buying a new construction property as a rental investment, vacation home, or property to flip — you will pay the full 5% GST with no rebate available.
Example: A $900,000 new home purchased as a rental = $45,000 in GST with no rebate.
If you're a registered GST collector (e.g., a business that charges GST), you may be able to claim an Input Tax Credit instead. Consult with an accountant about your specific situation.
GST vs. Property Transfer Tax: What's the Difference?
New home buyers in BC often confuse GST with Property Transfer Tax. Here's how they differ:
| GST | Property Transfer Tax | |
|---|---|---|
| Rate | 5% (with rebates) | 1% / 2% / 3% tiered |
| Applies to | New construction only | All real estate purchases |
| Rebates | Federal + BC for primary | FTHB + newly built exemptions |
| When paid | At closing | At closing |
Example on $800,000 New Home
Both costs need to be budgeted for when buying new construction.
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— Vivek R.
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Leave a ReviewFrequently Asked Questions
What is the new $50,000 GST exemption for first-time buyers?
Bill C-4 (Royal Assent March 12, 2026) eliminates GST entirely for first-time buyers on newly built homes up to $1,000,000 — saving up to $50,000. For homes between $1M and $1.5M, the exemption phases out on a sliding scale. This is now law and CRA is accepting applications.
Do I pay GST when buying a house in BC?
Only if it's a new construction home. Resale homes (previously lived in) are GST-exempt. New homes, pre-construction condos, and substantially renovated properties are subject to 5% GST — though first-time buyers may now pay $0 GST under the new Bill C-4 exemption.
How much is the GST rebate on a new home in BC?
First-time buyers can save up to $50,000 with the new GST exemption on homes up to $1M. Non-first-time buyers may qualify for the legacy federal rebate (up to $6,300 for homes under $450K) and the BC provincial rebate (up to $18,750 for homes under $1.15M).
Is the GST exemption automatic for first-time buyers?
Not quite. Most builders will credit the exemption at closing so you never pay GST. You'll sign a declaration confirming you're a first-time buyer. If the builder already charged GST, you can apply directly to CRA for a refund.
Do I pay GST on a resale home?
No. GST only applies to new construction homes that have never been lived in. Resale homes are exempt from GST regardless of whether you're a first-time buyer.
Is there PST on real estate in BC?
No. There is no Provincial Sales Tax (PST) on real estate purchases in BC. Only the federal GST applies to new homes.
What happens if my new home is between $1M and $1.5M?
The first-time buyer exemption phases out linearly. The formula is: Rebate = $50,000 × ($1,500,000 − Price) ÷ $500,000. For example, a $1.2M home gets a $30,000 rebate. At $1.5M, the rebate is $0.
Can I get the GST rebate on a rental property?
No. Both the new first-time buyer exemption and the legacy GST rebate are only available for primary residences. Investment and rental properties pay full GST with no rebate.
Who claims the GST rebate — me or the builder?
It depends on your purchase agreement. Most builders credit the exemption or rebate at closing and file the claim with CRA on your behalf. Some contracts have you claim it directly after closing. Ask your builder for clarification.