The First-Time Buyer GST Rebate on New Homes in Calgary

Almost every week a first-time buyer asks me, “Is it true I don’t have to pay GST on a new house?” For many of them, the answer is yes. Alberta has no provincial sales tax, so the tax on a new home here is the 5% GST, and on a typical new build that is tens of thousands of dollars. Here is how the rebate works, based on the Canada Revenue Agency’s rules as of October 2026. I am a REALTOR®, not a tax advisor, so please confirm your own situation with the CRA or an accountant.

How much can you save on a new home in Calgary?

• Up to $1 million: you can recover 100% of the GST, to a maximum of $50,000. Example: on a $600,000 new home, the GST is $30,000, and the rebate can cover all of it.
• $1 million to $1.5 million: the rebate is reduced gradually. The CRA’s example: a $1.25 million home, halfway through the range, gets 50% of the maximum, or $25,000.
• $1.5 million or more: no FTHB rebate.

Who qualifies as a first-time home buyer?

• You are at least 18 and a Canadian citizen or permanent resident.
• In the current calendar year and the previous four, you have not lived in a home that you, or your spouse or common-law partner, owned as your main home, in Canada or anywhere else.
• Neither you nor your spouse or partner has received this rebate before.

These conditions are tested on the day ownership transfers to you, not the day you sign.

Which homes qualify?

• A newly built (or substantially renovated) home bought from a builder, including condos and townhomes, or a home you build yourself.
• The agreement of purchase and sale with the builder is signed on or after March 20, 2025 and before 2031. Construction must start before 2031 and finish before 2036.
• It must be your primary place of residence, and you must be the first person to live in it after it is completed.

A resale home that someone has already lived in does not qualify. That is why this rebate can make a new build in a community like Cornerstone or Cityscape compare well with an older resale home nearby.

Can I buy with my spouse or my parents?

Only one buyer applies for the rebate, and that person must be a first-time buyer. A spouse or common-law partner is treated as having applied too. Co-owners who are not first-time buyers, such as parents on title, cannot apply. Families often put parents on title to help qualify for a mortgage, so talk to me and your lawyer about this before you sign.

How do you claim the rebate?

• Through the builder: if you agree, the builder can pay or credit the rebate to you. You both fill out CRA Form GST190.
• Directly from the CRA: you can apply yourself with Form GST190 (bought from a builder) or GST191 (owner-built).
• Deadline: generally within two years of the date ownership transfers to you.

How does it work with the regular GST new housing rebate?

The older GST/HST new housing rebate still exists for lower-priced homes. You don’t get both in full: the FTHB rebate works as a top-up, reduced by any new housing rebate you are entitled to, so together they can cover the full GST.

Tips before you sign with a builder

• Ask if the price includes GST, and whether the builder will credit the rebate to you at closing. Get it in writing.
• Watch the possession date. You must still be a first-time buyer on the day ownership transfers.
• Move in. The rebate is for a home you will live in as your main home, not an investment property.
• Stack your other first-home tools. The FHSA, the RRSP Home Buyers’ Plan and more are in my first-time buyer guide, and deposits and warranties are in my new build guide.

Thinking about a new home? Let’s talk.

I help first-time buyers across NE, SE, NW and SW Calgary, Chestermere, Airdrie, Cochrane, Okotoks and nearby communities, in English, Punjabi, Hindi and Urdu. I can compare new builds and quick possessions from different builders, and help you ask the right GST questions before you sign.

Frequently asked questions