GST on New Condos and the New Housing Rebate: What Greater Victoria Downsizers Should Know

If you are downsizing into a brand-new condo or townhome in Greater Victoria, GST may be part of your purchase price in a way it would not be for a resale home. Buying a newly constructed or substantially renovated home attracts the federal Goods and Services Tax at 5%, while buying a resale home is generally exempt. For many downsizers, that adds real dollars to the cost of the move, and the GST New Housing Rebate people often assume will soften the blow has income and price thresholds that decide who qualifies. This guide explains how GST works on new homes, how the rebate is calculated, and the questions to ask before you sign.

A note before we begin: this is general information to help you plan, not tax advice. GST rules are set by the Canada Revenue Agency and can change, and your accountant, notary, or tax professional is the right person to confirm what applies to your specific purchase.

Which purchases attract GST

In British Columbia, GST applies to the purchase of a newly constructed home or condominium, and to a home that has been substantially renovated so that it is essentially a new building. A resale home, meaning one that has been lived in by a previous owner, is generally exempt from GST. The practical result for downsizers is that the price you pay for a resale condo does not include GST, but the price of a brand-new unit often does.

BC does not add its provincial sales tax on top of the GST for new-home purchases, so the 5% federal GST is the main sales tax to plan around on a new build. It is also worth remembering that GST is separate from BC's property transfer tax, which applies to both new and resale purchases. Our guide to property transfer tax for downsizers explains that part of the picture.

What 5% looks like in dollars

The easiest way to make this concrete is with numbers. If a new-build condo is listed at $500,000, the GST on that purchase is $25,000. At $600,000, it is $30,000. At $700,000, it is $35,000. These are real amounts that belong in your downsizing budget alongside the deposit, property transfer tax, legal fees, and moving costs.

Some developers advertise prices that include GST, and others quote a base price with GST payable on top, so it is essential to confirm which is the case in writing before you commit. The question sounds simple, but it changes your total cost by tens of thousands of dollars.

The GST New Housing Rebate, explained

The GST New Housing Rebate is a federal program that refunds a portion of the GST paid on a newly constructed or substantially renovated home that will be your primary residence. For an eligible owner-occupant, the rebate is equal to 36% of the GST paid, up to a maximum of $6,300. That maximum works out to the full rebate on a home priced at $350,000, where 5% GST of $17,500 multiplied by 36% equals the $6,300 cap.

The rebate is not automatic. It must be claimed, usually as part of your GST return for a self-build or through the builder or the CRA for a purchased home, and it is available for both single-family homes and residential condominium units.

The thresholds that decide whether you qualify

The rebate phases out based on the purchase price or fair market value of the home. The structure has three bands:

• Full rebate: Homes priced at $350,000 or less receive the full 36% rebate, up to the $6,300 maximum.
• Partial rebate: Homes priced between $350,000 and $450,000 receive a gradually reduced rebate that phases out as the price rises.
• No rebate: Homes priced at $450,000 or more do not qualify for the GST New Housing Rebate, so the buyer pays the full 5% GST.

These thresholds have been in place for a long time and have not kept pace with home prices, which matters for anyone considering a new build in Greater Victoria.

What this means for downsizers in Greater Victoria

Most new condos in Greater Victoria sell well above the $450,000 threshold where the rebate ends. In the Victoria Core, the benchmark condo price was around $547,800 as of September 2026, so a brand-new unit in a desirable building will usually be above the cap. The honest takeaway for most downsizers is that you should plan for the full 5% GST on a new build and treat the rebate as the exception rather than the expectation.

There are still pockets where the numbers work differently. Smaller units, or homes in communities where prices sit lower than the Core average, can fall into the partial rebate range. If you are buying new and the price is anywhere near $450,000, it is worth calculating the rebate carefully with your accountant rather than assuming either extreme.

One more program is worth knowing exists, though it is separate: the federal government introduced a distinct first-time home buyer GST rebate in 2025 that can be worth much more for qualifying first-time buyers. It does not apply to most downsizers who already own a home, but if the purchase involves a child or family member buying for the first time, it is a question worth raising with a tax professional.

Where new construction is happening in Greater Victoria

Most of the new-build inventory in the region is concentrated in the communities where land was available for denser development: Langford, Colwood, and the western communities; Saanich, particularly along the Douglas and Carey corridors and near Uptown; Victoria itself, including downtown, Vic West, and the Selkirk waterfront; and to a smaller extent View Royal, Esquimalt, and Sidney. If a new build is on your list, comparing the GST-adjusted cost of a new unit against a resale condo in the same neighbourhood is one of the most useful exercises you can do.

New build vs resale: the bigger picture

GST is one of several trade-offs between buying new and buying resale, and it rarely decides the question on its own. A new build offers modern accessibility, warranty coverage, and no deferred maintenance, but it comes with the wait for construction, the uncertainty of a developing neighbourhood, and the GST. A resale condo is move-in ready and GST-exempt, but it may need updates and carries the age and condition of the building, including its strata fees and depreciation report.

For many downsizers the deciding factors are not the tax but the timeline and the building itself. If you are selling a family home and need somewhere to live on a known date, a resale often fits a downsizing timeline more cleanly than waiting for a new build. If you have flexibility and want a turnkey space, the new build may be worth the GST. Our guide to buying a pre-sale or new-build condo walks through the full set of considerations, and our guide on condo living after downsizing explains what changes in daily life.

Questions to ask before you buy new

• Is the advertised price inclusive of GST, or is GST payable on top?
• Does this purchase qualify for the GST New Housing Rebate, and if so, how will it be claimed?
• What is the fair market value used for the rebate calculation, and is it the same as the purchase price?
• Is this property new construction, a substantial renovation, or a resale? The answer changes the GST treatment entirely.
• How does the GST fit into my total closing budget alongside the property transfer tax, legal fees, and moving costs?
• Does anyone in the purchase qualify for a separate first-time home buyer program that changes the tax picture?

A good notary or real estate lawyer can walk you through the numbers before you sign, and your accountant or a tax professional should confirm the rebate treatment for your situation. This is one of those areas where a short conversation before signing saves a significant amount of money later.

Frequently asked questions

Do you pay GST on a used or resale home in BC?

Generally, no. A resale home that has been occupied by a previous owner is exempt from GST. GST applies to newly constructed and substantially renovated homes, which is why the question matters most for buyers of new condos and townhomes.

Is GST on a new home 5% in British Columbia?

Yes. The federal GST rate is 5%, and BC does not add PST on top for new-home purchases. On a $500,000 new condo, that is $25,000 in GST, so it belongs in your budget from the start.

How does the GST New Housing Rebate work?

For an eligible owner-occupant, the rebate refunds 36% of the GST paid, up to a maximum of $6,300. The full rebate applies to homes priced at $350,000 or less, it phases out between $350,000 and $450,000, and no rebate is available at $450,000 or above.

Will I get a GST rebate on a new condo in Greater Victoria?

Most new condos in the region sell above the $450,000 rebate threshold, so for many downsizers the answer is no. If the price is near or below that range, it is worth calculating the partial rebate carefully with a tax professional, because the phase-out is gradual, not all-or-nothing.

Is the GST the same thing as the property transfer tax?

No. GST is a federal sales tax on new construction, while BC's property transfer tax is a provincial tax on the transfer of title that applies to both new and resale purchases. A new-build buyer can face both, so it helps to plan for each separately.

Is there a GST rebate for first-time home buyers?

A separate federal first-time home buyer GST rebate was introduced in 2025 and is distinct from the GST New Housing Rebate. It is more generous for qualifying first-time buyers, so if anyone in the purchase is buying a home for the first time, it is a program worth asking a tax professional about.