BC GST New Home
Rebate Calculator
Calculate the GST you'll pay — and the rebate you can claim — when buying a new construction home in British Columbia.
Net GST Owing
$0
Enter a purchase price to see your estimate
Rebates only apply to new homes used as a primary residence. 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.
Federal GST New Housing Rebate
The federal GST new housing rebate returns a portion of the GST you paid on a new home, if it will be your primary residence.
Rebate Amount
- 36% of the GST paid
- Maximum rebate: $6,300
Eligibility
- Must be your primary residence
- You or family member must be first occupant
- Under $450,000 for full rebate
Phase-Out Thresholds
| Purchase Price | GST (5%) | Federal Rebate | Net Federal |
|---|---|---|---|
| $350,000 | $17,500 | −$6,300 | $11,200 |
| $400,000 | $20,000 | −$3,150 | $16,850 |
| $450,000 | $22,500 | $0 | $22,500 |
| $800,000 | $40,000 | $0 | $40,000 |
Most new homes in Surrey exceed the $450,000 threshold, so the federal rebate often doesn't apply. However, the BC provincial rebate (below) has much higher limits.
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 Rebate Examples at Surrey Price Points
Here's what you'd actually pay in net GST on new construction homes at common Surrey price points:
| Price | GST (5%) | Federal | BC | Net GST |
|---|---|---|---|---|
| $350,000 | $17,500 | −$6,300 | −$5,250 | $5,950 |
| $500,000 | $25,000 | $0 | −$7,500 | $17,500 |
| $700,000 | $35,000 | $0 | −$10,500 | $24,500 |
| $900,000 | $45,000 | $0 | −$13,500 | $31,500 |
| $1,100,000 | $55,000 | $0 | −$16,500 | $38,500 |
| $1,300,000 | $65,000 | $0 | $0 | $65,000 |
Key takeaway: For most new homes in Surrey ($700K–$1.1M range), you'll save $10,000–$16,500 through the BC provincial rebate alone.
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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Leave a ReviewFrequently Asked Questions
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.
How much is the GST rebate on a new home in BC?
You may qualify for two rebates: the federal rebate (up to $6,300 for homes under $450K) and the BC provincial rebate (up to $18,750 for homes under $1.15M). Most Surrey homes exceed the federal threshold but qualify for the BC rebate.
Is the GST rebate automatic?
No. Either you or your builder must apply for it. In most new home purchases, the builder claims the rebate and factors it into the purchase price. If you're claiming it yourself, you must file within 2 years.
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.
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 is the GST rebate threshold in BC?
For the federal rebate, homes over $450,000 receive no rebate. For the BC provincial rebate, homes over $1,150,000 receive no rebate. The rebates phase out linearly as prices approach these thresholds.
Can I get the GST rebate on a rental property?
No. The GST new housing rebate is only available for primary residences. Investment and rental properties do not qualify for rebates.
Who claims the GST rebate — me or the builder?
It depends on your purchase agreement. Most builders claim the rebate themselves and factor it into your purchase price. Some contracts have you claim it directly after closing. Ask your builder for clarification.
Buying a New Home in Surrey?
New construction comes with unique costs and considerations. I can help you understand the full picture — from GST to PTT to what to look for in a pre-sale contract. Let's chat about your new home purchase.