By Lev Kramar, Integrity Legal Solutions · Calgary, Alberta
GST of 5 percent applies to newly built homes in Alberta. Resale homes are exempt. The long-standing GST New Housing Rebate returns 36 percent of the GST to a maximum of $6,300, phasing out between $350,000 and $450,000 and disappearing entirely above $450,000. The first-time home buyers’ GST rebate, which received Royal Assent in March 2026, eliminates the full federal GST on a qualifying new home up to $1 million for eligible first-time buyers, with a straight-line phase-out to $1.5 million. It applies to agreements entered into after May 26, 2025 and before 2031.
On a resale home in Calgary there is no GST. On a new build there is, at 5 percent, and on a $700,000 home that is $35,000. Whether you ever see that money again depends on which rebate you qualify for and whether the builder’s price already accounts for it.
The rules changed materially in 2026. Here is where they stand.
When does GST apply to a home purchase in Alberta?
GST applies to newly constructed and substantially renovated residential property. That covers a new home from a builder, a new condominium unit, and a home that has been substantially renovated to the point the Canada Revenue Agency treats it as new.
GST does not apply to used residential housing. A resale home changing hands between individuals is exempt, which is why a resale buyer never sees GST on a statement of adjustments.
Alberta has no provincial sales tax, so the only tax in play is the 5 percent federal GST. Buyers in Ontario and the Atlantic provinces deal with a combined HST and a separate provincial rebate. Alberta buyers do not.
The GST New Housing Rebate
This is the long-standing rebate and it has not changed. It returns 36 percent of the GST paid on the purchase of a new home, to a maximum of $6,300.
The maximum applies where the purchase price is $350,000 or less. Between $350,000 and $450,000 the rebate phases out on a sliding scale. Above $450,000 it is gone entirely.
Those thresholds were set decades ago and have never been indexed. In today’s Calgary market, very few new builds fall under $450,000, which means the traditional rebate is unavailable to most buyers. That is the problem the new rebate was designed to fix.
The first-time home buyers’ GST rebate
Bill C-4 received Royal Assent in March 2026, making the first-time home buyers’ GST rebate law and allowing the Canada Revenue Agency to begin processing claims.
The rebate eliminates 100 percent of the federal GST on a qualifying new home valued up to $1 million. Between $1 million and $1.5 million it phases out on a straight-line basis. Above $1.5 million there is no rebate.
The maximum benefit is $50,000, which is the GST on a $1 million home.
Where both rebates apply, the first-time buyers’ rebate operates as a top-up to the existing new housing rebate rather than as an alternative to it.
Who qualifies as a first-time home buyer?
The test is stricter than most people expect. To qualify, you must not have lived in a residential unit that you owned, or that your spouse or common-law partner owned, in the current calendar year or in the four preceding calendar years. That applies whether the home was in Canada or outside it.
You must also be at least 18, a Canadian citizen or permanent resident, and acquiring the home as your primary place of residence. The rebate is not available to a corporation or a partnership.
Which purchases qualify?
The rebate applies to a new or substantially renovated home purchased from a builder, a home you build or substantially renovate yourself, a new home on land leased from the builder, and shares in a co-operative housing corporation that entitle you to occupy a new unit.
The agreement of purchase and sale must have been entered into after May 26, 2025 and before 2031.
What this means for a Taza or new-build Calgary buyer
Most first-wave homes at Taza Park, and most new builds in Calgary’s outer communities, sit under $1 million. For a first-time buyer, that means the entire GST comes off.
On a $650,000 new home, the GST is $32,500. Under the old rules a first-time buyer got nothing back, because the price exceeded $450,000. Under the current rules, an eligible first-time buyer recovers the full $32,500.
The rebate is also available where the home sits on land leased from the builder, which is the structure used at Taza. That is worth confirming with your lawyer against your specific agreement, because leasehold structures vary.
How the rebate is handled at closing
There are two routes, and which one applies changes what you need in cash.
Assigned to the builder
Most builders in Alberta advertise a price with GST included and net of the rebate. You sign the rebate over to the builder, the builder claims it from the Canada Revenue Agency, and you never handle the money. Your purchase price already reflects the reduction.
This is convenient and it is the most common arrangement. It also means that if you turn out not to qualify, the builder will come back to you for the difference. That obligation is in your purchase agreement.
Claimed directly
You pay the full GST at closing and apply to the Canada Revenue Agency yourself afterward. You need the full amount available on possession day, and the refund arrives weeks or months later.
Read your agreement to determine which route applies before you finalize your financing. Builder-advertised prices sometimes include GST and assume assignment, and sometimes do not. The difference on a $650,000 home is $32,500 in cash you either need or do not.
Where buyers get caught
- Assuming the advertised price includes GST when it does not. Check the agreement, not the sales brochure.
- Failing the first-time buyer test because of a property owned within the previous four calendar years, including one owned by a spouse or common-law partner, and including property outside Canada.
- Buying as an investment. The rebate requires the home to be your primary place of residence. A rental property falls under the separate New Residential Rental Property Rebate, which works differently.
- Assignment purchases, where a contract is bought from an original purchaser. Eligibility and timing become considerably more complicated and need to be reviewed specifically.
- Buying in a corporate name. Neither corporations nor partnerships qualify for the first-time buyers’ rebate.
Frequently asked questions
Do I pay GST on a resale home in Alberta?
No. Used residential housing is exempt. GST applies only to new and substantially renovated homes.
How much is the first-time home buyers’ GST rebate worth?
Up to $50,000, being the full federal GST on a home valued at $1 million. The rebate phases out on a straight-line basis between $1 million and $1.5 million.
Can I claim both rebates?
Where both apply, the first-time home buyers’ rebate acts as a top-up to the existing GST New Housing Rebate. In practice, on a Calgary new build priced above $450,000, only the first-time buyers’ rebate is in play.
Does the rebate apply to a home on leased land?
Yes. The rebate is available where a first-time buyer purchases a newly constructed home on land leased from the builder for use as their primary residence. Confirm the specific lease structure with your lawyer.
When does the first-time buyers’ rebate expire?
It applies to purchase agreements entered into after May 26, 2025 and before 2031.
What if I bought before May 26, 2025?
Only the existing GST New Housing Rebate is available, capped at $6,300 and unavailable above a $450,000 purchase price.
Talk to Lev
Call (403) 466-6580 or email Lev@integrity-legal.ca to book a consultation. We close real estate transactions across Alberta – including Calgary and surrounding areas, with 1-2 week turnarounds when timelines are tight.
Lev Kramar is the principal lawyer at Integrity Legal Solutions in Calgary. He focuses on residential and commercial real estate, with a particular interest in leasehold and new-build closings, including transactions at Taza Park on Tsuut’ina Nation land. Integrity Legal Solutions serves clients across Alberta, with a reputation for fast funds movement and direct, plain-language communication.
Phone: (403) 466-6580 · Email: Lev@integrity-legal.ca · 1550 5 St SW #300, Calgary, AB T2R 1K3
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