Short answer: If you’re a first time buyer purchasing a new or substantially renovated home in Alberta as your primary residence, the First Time Home Buyers’ GST Rebate can refund up to the full 5% GST on homes up to $1,000,000 (up to $50,000), with a partial rebate between $1,000,000 and $1,500,000. It applies to agreements signed from March 20, 2025 to December 31, 2036 and became law on March 12, 2026. Resale homes don’t carry GST. Confirm details with the CRA.
Two Programs
GST/HST New Housing Rebate (existing): any buyer of a new or substantially renovated primary residence. 36% of the GST up to $6,300, phasing out between $350,000 and $450,000.
First Time Home Buyers’ GST Rebate (new): first time buyers only. Up to 100% of the GST on homes up to $1,000,000, phasing out to $0 at $1,500,000.
Does Alberta Charge GST on New Homes?
Yes, the federal 5% GST. Alberta has no provincial sales tax, so GST is the only sales tax. Resale homes are generally exempt.
Who Qualifies for the New Rebate
- First time buyer: generally you and your spouse or partner haven’t lived in a home you owned in the preceding four calendar years
- Canadian citizen or permanent resident
- Eligible property: new builds, substantially renovated homes (at least 90% of the interior replaced), new condos from a builder, some mobile or manufactured homes
- Timing: agreement signed March 20, 2025 to December 31, 2036, home not previously occupied
- Primary residence: not an investment or short term rental
Examples
| Price | GST (5%) | New rebate if eligible |
|---|---|---|
| $450,000 | $22,500 | Up to $22,500 |
| $650,000 | $32,500 | Up to $32,500 |
| $1,250,000 | $62,500 | Partial (phase out) |
At $450,000 the older rebate alone would be $0, so the new program changes the math for first time buyers.
Builder Credited vs You Claim
Many Alberta builders credit the rebate in the price and claim it from the CRA. Check your purchase agreement. If not, you pay the GST at closing and apply to the CRA, generally within two years. Processing can take months, so apply early and keep records.
Edge Cases
- Owner built homes can qualify under different rules
- Co-owning with someone who isn’t a first time buyer may affect eligibility
- Assignment sales can have different GST treatment
- Homes used for short term rentals don’t qualify
Common Misconceptions
- Resale homes don’t have GST
- The new rebate doesn’t replace the old one
- If your builder already took the rebate, you can’t claim it again
- The rebate covers GST only, not legal, land titles or other closing costs
This is general information, not tax advice. Rules can change. Confirm with the Canada Revenue Agency or a tax professional.
→ Related: First Time Home Buyer Guide
Frequently asked questions
What is the First Time Home Buyers' GST Rebate?
A federal rebate that lets eligible first time buyers recover up to 100% of the GST on a new or substantially renovated primary residence priced up to $1,000,000, with a partial rebate up to $1,500,000. It received Royal Assent on March 12, 2026.
How is it different from the GST/HST New Housing Rebate?
The older rebate is open to any buyer but is capped at $6,300 and phases out between $350,000 and $450,000. The new program is only for first time buyers and covers up to the full 5% GST on homes up to $1,000,000.
Does GST apply to resale homes in Alberta?
Generally no. GST applies to new and substantially renovated homes.
Who qualifies as a first time buyer?
Generally a Canadian citizen or permanent resident who, with their spouse or partner, hasn't lived in a home they owned in the current year or previous four calendar years. Confirm the exact definition with the CRA.
What is the eligibility window?
Agreements of purchase and sale signed on or after March 20, 2025 and on or before December 31, 2036, for homes not previously occupied.
Is the rebate paid to me or the builder?
Either. Many builders credit it in the price and claim it themselves. Otherwise you apply to the CRA after closing, generally within two years.
Can I use it with the FHSA and RRSP Home Buyers' Plan?
Yes. They're separate programs.
This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed through Mortgage Connection Inc.