How much is GST on a new home in BC?
The standard federal GST is 5% of the purchase price.
So if a new home is priced at $900,000, the GST would generally be:
$900,000 × 5% = $45,000
For a typical resale condo, townhouse, or detached house, GST usually does not apply because it was already paid when the home first entered the market as a new residential property.
For eligible buyers, there may be rebates available. The CRA states that the GST/HST New Housing Rebate can help recover some of the GST paid on a qualifying new home that will be used as a primary place of residence.
There is also now a First-Time Home Buyers’ GST/HST Rebate. CRA says eligible first-time buyers may recover up to 100% of the GST, up to $50,000, on a qualifying new home valued at $1 million or less. The rebate is reduced for homes priced between $1 million and $1.5 million.
In general, this newer first-time buyer rebate applies to qualifying agreements entered into on or after March 20, 2025, before 2031, with ownership transfer before 2036, provided all eligibility conditions are met.
Before buying, review your contract carefully to confirm whether GST is included in the purchase price or payable in addition to it. That distinction matters. For the right buyer, understanding GST and rebate eligibility can make a meaningful difference in total closing costs.
Disclaimer: This article is for general information only and is not legal, tax, or accounting advice. Buyers should confirm GST treatment and rebate eligibility with their lawyer or accountant before completing a purchase.