GST new housing rebate in BC: the $450,000 cutoff and the first-time buyer rebate up to $50,000

BC has no HST, so on a new home you pay 5% GST and there are two federal rebates. The regular GST new housing rebate gives back 36% of the GST, up to $6,300, on a home priced at $350,000 or less, shrinks between $350,000 and $450,000, and is zero at $450,000 or more. The first-time home buyers' (FTHB) rebate returns all of the GST, up to $50,000, on a new home valued up to $1 million, phasing out to zero at $1.5 million.

Updated October 28, 2026. Figures from CRA Guide RC4028 (revised October 2026) and the Department of Finance, linked below.

Rebate 1: the GST new housing rebate

  • Amount: 36% of the GST paid, to a maximum of $6,300.
  • Price test: full rebate at $350,000 or less, reduced between $350,000 and $450,000, nil at $450,000 or more.
  • Who: an individual (not a corporation) buying or building a new or substantially renovated home as their own or a relation's primary residence.
  • Forms: GST190 when you buy from a builder (the builder often credits it at closing); GST191 with worksheet GST191-WS for an owner-built home.

Example (estimate): a new $425,000 condo in Kelowna. GST is $21,250 and 36% of that is above the cap, so start from $6,300. Because the price is $25,000 short of $450,000, the rebate is $6,300 times 25,000 divided by 100,000, about $1,575. In Okanagan markets most new detached homes are above $450,000 and get nothing from this rebate.

Rebate 2: the first-time home buyers' GST rebate

  • Amount: 100% of the GST, up to $50,000, on a new home valued up to $1 million.
  • Phase-out: straight-line between $1 million and $1.5 million. A $1.25 million home gets a 50% rebate, up to $25,000. Nothing at $1.5 million or more.
  • Bought from a builder: agreement signed on or after May 27, 2025 and before 2031; construction begins before 2031 and the home is substantially completed before 2036.
  • Owner-built: construction or substantial renovation begins on or after March 20, 2025 and before 2031, and is substantially completed before 2036.
  • First-time buyer: at least 18, a Canadian citizen or permanent resident, and you (or your spouse or common-law partner) did not own and live in a home as your primary residence in the claim year or the four calendar years before. Once per lifetime.

Example (estimate): a first-time buyer signs for an $800,000 new townhouse in West Kelowna. GST is $40,000. The FTHB rebate returns all $40,000. The regular rebate adds nothing because the price is over $450,000.

For builders and renovators

  • A spec builder who sells a new home charges GST on the sale and usually credits the buyer's rebate on the closing statement, then claims it back from the CRA.
  • An owner who builds their own home, or guts an existing one (90% or more of the interior removed or replaced), files GST191. The general deadline is two years from the earlier of first occupying the home or substantial completion; check RC4028 for your case.
  • Keep original invoices and the completed forms for six years.

FAQ

Is there a BC provincial housing rebate on top?
No provincial sales tax rebate applies, because BC charges GST only on new homes, not HST. Property transfer tax has its own separate exemptions.

Can I get both rebates?
Yes. The FTHB rebate works as a top-up on the regular rebate, so the two together never exceed the GST paid.

Does a corporation qualify?
No. Both rebates are for individuals buying a home to live in.

What if I sell soon after?
Selling quickly can mean the home was not acquired as your primary residence, and the BC home flipping tax may also apply. See our page on the BC home flipping tax.

Every purchase is different, so talk to your accountant before you sign or file.

Sources: CRA: Guide RC4028, GST/HST New Housing Rebate (Rev. 10/2026); CRA: GST/HST new housing rebate (modified 2026-09-24); Department of Finance: GST relief for first-time home buyers.

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