Do you pay GST on presales in BC?

Yes. Every brand-new residential property sold in British Columbia by the developer is subject to 5% GST on the purchase price. That includes every condo tower and townhome complex selling right now in Surrey, Langley, Maple Ridge, Burnaby, and anywhere else in the Lower Mainland.

BC has a Provincial Sales Tax (PST), but residential new construction is exempt from PST. So the only sales tax you're paying on a presale purchase is 5% federal GST.

A couple of things that trip people up:

• GST is payable at completion, not at deposit. When you sign the presale contract and hand over the deposit, no GST moves. When the building finishes and you close your purchase 2-4 years later, that's when the 5% hits your closing cost statement.
• GST is not bundled into the mortgage automatically. Most lenders require it paid as part of the cash-at-close (though some will add it to the mortgage if your loan-to-value allows — ask your broker).
• On a "GST included" advertised price, the rebate is already assumed. If a developer markets the price as "incl. GST" or "net of GST rebate", the rebate is baked in — but only for qualifying buyers. If you don't qualify (e.g. you're buying as an investor), you may owe the full GST back. Read the fine print.

What is the new housing rebate?

The GST/HST New Housing Rebate is a federal program that returns a slice of the 5% GST you paid on a brand-new home, if you meet the eligibility rules and the home falls below a price ceiling.

For a qualifying BC owner-occupier buyer, the federal rebate gives back 36% of the GST paid, to a maximum of $6,300. The maximum rebate applies on homes priced up to $350,000. Between $350,000 and $450,000 the rebate phases out linearly. At $450,000 and above, the rebate is zero.

BC does not currently layer a provincial rebate on top. BC had one briefly during the HST era (2010-2013) but that disappeared when BC went back to separate GST+PST. There is a historical "BC Transitional New Housing Rebate" for homes caught mid-transition in 2013 — irrelevant in 2026.

So for Fraser Valley buyers today, there is effectively one rebate to think about: the federal new housing rebate, capped at $6,300, phased out above $450,000.

Who qualifies for the rebate?

CRA's rules are specific. You generally qualify for the federal rebate if all of these are true:

• The home is brand new (or substantially renovated, defined as 90%+ rebuilt).
• You're buying it from a builder or developer, not from a resale seller.
• The home will be used as your primary place of residence, or the primary residence of a close relative (spouse, common-law partner, parent, child, sibling, grandparent, grandchild). Short definition of "primary residence": where you live, get mail, pay utilities, file taxes from.
• The purchase price is below $450,000 for any rebate at all.
• You're the named buyer on title at closing (or on the rebate assignment).

If you're buying as a pure investor to rent out, you're not eligible for the standard new housing rebate. You may qualify for the New Residential Rental Property (NRRP) rebate, which has the same $450,000 phase-out but requires a long-term tenant (at least 12 months) and a longer application process. The dollar amount is similar but it's a different form, different timing, and you claim it AFTER tenancy starts — not at closing.

Most developers will let the eligible owner-occupier buyer assign the rebate to them at closing, meaning the developer claims it from CRA and the buyer pays a price that's already net of the rebate. If you're not eligible (investor, for example), the developer adds the rebate amount back onto your closing cost. This is why truthfully declaring your intent on the builder's rebate assignment form is critical — CRA audits these.

Current thresholds and phase-outs

Here's how the federal new housing rebate actually scales with price. The formulas are set out in the Excise Tax Act; the practical result is simple:

The $350,000 and $450,000 thresholds have not been indexed to inflation since 1991. In 1991 the average Canadian home was around $150,000 and the rebate ceiling made sense. In 2026 Fraser Valley, a one-bedroom presale condo in Surrey City Centre starts around $500,000. A townhome in Willoughby Langley is typically $750,000 to $950,000. So in practice, the new housing rebate benefits almost nobody buying new in Metro Vancouver or the Fraser Valley today. Federal parties have floated raising the thresholds periodically; as of this writing, nothing has passed.

Real examples with real numbers

Let's put this on projects you're probably looking at. Prices below are illustrative (actual phase pricing changes month-to-month — grab the Watchlist for current).

• Park George Surrey — one-bed at ~$550,000: GST $27,500, rebate $0, net GST $27,500 due at completion. Cash-at-close planning: this is on top of legal, property transfer tax (if applicable — new-to-you purchases under $500k may be exempt, but Park George is above that threshold), and your deposit shortfall.
• Georgetown Surrey — two-bed at ~$750,000: GST $37,500, rebate $0, net GST $37,500. That's more than half a typical 10% initial deposit.
• Heath West Langley townhome at ~$850,000: GST $42,500, rebate $0, net GST $42,500. Budget this from day one; do not let it ambush you in month 36.
• Griffon Langley townhome at "GST included" ~$899,000: the developer has baked the full GST into the advertised price and assumes owner-occupier rebate assignment. Read the purchase agreement: if you're an investor or change your mind on occupancy, you may owe the $6,300 (or a portion) back at closing. For a qualifying owner-occupier, nothing extra.
• A hypothetical $399,000 studio in an affordable Maple Ridge project: GST $19,950, rebate ~$3,500, net GST ~$16,450. This is the rare BC scenario where the rebate actually moves a number.

Common mistakes buyers make

Seven patterns I see with almost every Fraser Valley presale buyer until they're warned:

1. Forgetting GST in the cash-at-close budget. The purchase agreement lists the price. The price does not include GST unless explicitly stated. On an $800,000 townhome, that is $40,000 of surprise if you missed it. Your mortgage broker will tell you how much you actually need liquid at closing; bring them the signed contract and the rebate schedule early.
2. Thinking the rebate applies to resale. It doesn't. Resales from individual sellers (almost all MLS-listed used homes) are GST-exempt entirely. No GST, no rebate, because there's no new-housing taxable supply. See the presale vs resale comparison for the full tax picture.
3. Lying on the rebate assignment form to claim it as an investor. CRA audits these. The penalty is the rebate amount plus interest plus potential gross-negligence penalties. Not worth it.
4. Assuming the "GST included" advertising rate is a guarantee. It's almost always conditional on buyer eligibility. Read your contract. When in doubt, ask the developer sales rep in writing.
5. Not checking if the home qualifies as substantially renovated. A handful of retrofit conversions (old commercial buildings turned into condos) still count as "new" construction for GST purposes. If you see a 1960s office tower being sold as condos, it might be a GST-taxable purchase. Ask your realtor to confirm with the developer's legal team.
6. Not factoring GST into the total cost-of-ownership comparison between presale and resale. The advertised presale price is often 5-7% lower than a comparable new resale, but GST alone adds 5% back. Sometimes a new resale (built last year, individual seller, no GST) is the cheaper purchase even at a higher sticker.
7. Missing the rebate claim deadline on an investor NRRP. Owner-occupier rebate is typically auto-assigned and handled by the developer at close. Investor NRRP is DIY — you have two years after tax becomes payable to file. Miss it, you eat the money.

How GST impacts assignment sales

Assignment sales are when the original presale buyer sells their contract to a new buyer before completion. In BC's softer markets these pop up when a buyer's financials change and they need out before closing.

The GST rules on assignments changed in May 2022. Federally, GST now clearly applies to the assignment fee portion (the profit the original buyer is making on the sell-on) on almost every presale assignment, regardless of whether the original buyer is an individual or a commercial entity. If you're the assignee (the new buyer), you will typically pay:

• 5% GST on the full purchase price at completion (as with any new home).
• 5% GST on the assignment fee paid to the original buyer (layered on top).
• Possibly property transfer tax on the higher assigned value, depending on timing.

The assignor (seller) is usually responsible for collecting and remitting the GST on the assignment fee, but in practice most assignment agreements shift that obligation to the assignee. Read every line of any assignment contract. A $50,000 assignment fee on a $700,000 presale means you are paying $35,000 of GST on the full purchase at close plus $2,500 of GST on the assignment fee — and the rebate is still zero because you're well above $450,000.

Assignments in BC also trigger reporting obligations under the federal underused housing tax regime and the BC prohibition on foreign ownership. If you are considering buying an assignment, get a real estate lawyer involved before signing, not after.

Presale vs resale: GST comparison

When to call your lawyer or accountant

I can walk you through the practical side of GST on presales — what to expect, how to budget, how to read the purchase agreement. I am not a tax lawyer or a CPA, and BC tax situations can get bespoke fast. Loop in a professional if any of these apply:

• You are buying with a family member on title and the intended occupant is different from the payer.
• You are considering an assignment purchase (sign nothing before a real estate lawyer reviews the paper).
• The property will be used as short-term rental (Airbnb, VRBO — this knocks out the owner-occupier rebate and introduces GST registration on rental income).
• You are a non-resident buyer or a Canadian corporation buying residential property.
• Your purchase price sits in the $350,000-$450,000 partial phase-out zone where the math gets fiddly.
• You are combining a primary-residence purchase with a secondary suite or rental unit in the same building (mixed-use rebate gets complicated).

None of the above is tax or legal advice. Use it as a starting map, then get a professional before signing anything material.

Frequently Asked Questions

Alex Dunbar

REALTOR · REAL Broker BC Ltd. · Fraser Valley presale specialist

Text: 604-314-5418 · Email: alex@realestatehelp.com

Featured guides: Deposit Guide · Presale Watchlist