How Does the New-Build GST Rebate Work for Alberta First-Time Buyers?
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·Reviewed by a mortgage professional
Short answer
The first-time home buyers’ GST rebate can eliminate the 5% federal GST on a qualifying new home priced up to $1,000,000, with a reduced rebate between $1,000,000 and $1,500,000 and no rebate at or above $1,500,000. The maximum rebate is up to $50,000. Eligibility is subject to CRA rules.
The plain-English version
New construction homes are subject to 5% GST in Alberta (there is no provincial sales tax). For qualifying first-time buyers purchasing an owner-occupied new build, this rebate can offset that GST — a meaningful amount on a new home.
Between $1,000,000 and $1,500,000 the rebate is reduced on a sliding scale, and at $1,500,000 or above it phases out entirely. The amount and your eligibility depend on CRA criteria and the paperwork from your builder.
Alberta-specific considerations
- Alberta has no provincial sales tax, so the rebate conversation is about the federal GST only.
- Many Alberta builders quote prices "net of rebate," so confirm exactly which figure you are looking at in your purchase agreement.
- Assignment sales, occupancy timing, and how the agreement is structured can all affect how and when a rebate applies.
Example scenario
A first-time buyer purchasing a qualifying $650,000 new build as their primary residence would pay about $32,500 in federal GST (5%) — the FTHB rebate could eliminate that entire amount. At $1,000,000 the rebate reaches the $50,000 cap. At $1,250,000, the sliding-scale maximum is about $25,000 — subject to CRA rules and builder paperwork.
Common mistakes to avoid
- Assuming every new build qualifies — first-time-buyer and owner-occupancy conditions apply.
- Not clarifying whether the builder’s price already includes the rebate.
- Treating a planning estimate as a confirmed amount before CRA and builder paperwork verify it.
- Overlooking how an assignment or rental intention can change eligibility.