New construction homes in north Calgary

GST/HST rebate

The First-Time Home Buyers' GST/HST Rebate

New homes attract GST. Resale homes generally do not.

For first-time buyers of qualifying new construction, a federal rebate can remove some or all of that GST — which materially changes the comparison between a new build and a resale property.

What the Rebate Does

On a qualifying new home priced at $1 million or less, an eligible first-time buyer may recover the full 5% GST — a maximum rebate of $50,000.

Between $1 million and $1.5 million the rebate phases out on a straight-line basis. At the $1.25 million midpoint that works out to roughly half the maximum.

At $1.5 million or above, no rebate is available.

Figures verified August 2026 against the Canada Revenue Agency. This is a federal program and its rules can change.

Who May Be Eligible

Broadly, the rebate is aimed at individuals buying, building or substantially renovating their first home. Key conditions include:

  • The purchase agreement with the builder must have been entered into on or after 20 March 2025 and before 2031
  • Construction must begin before 2031 and be substantially completed before 2036
  • Neither you nor your spouse or common-law partner may have previously received this rebate

Those dates matter. A buyer who signed with a builder before 20 March 2025 is generally outside the program regardless of when the home completes.

Why It Changes the New-vs-Resale Comparison

Buyers often compare a new build and a resale home on list price alone. For an eligible first-time buyer, GST is a real part of the cost of the new home — and the rebate can remove a meaningful portion of it.

That does not automatically make new construction the better purchase. It does mean the comparison should be made after tax rather than before it.

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Before You Rely On It

Eligibility depends on your circumstances, the property, the builder's agreement and the current program rules — none of which we can confirm for you.

Verify eligibility with the Canada Revenue Agency, your lawyer or a qualified tax professional before treating the rebate as part of your budget. We are not tax advisors and nothing here is tax advice.

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