Eligible first-time buyers may now recover up to 100% of the federal GST paid on a qualifying newly built or substantially renovated home in Alberta, to a maximum of $50,000.
The full rebate applies to qualifying homes valued at $1 million or less. It is gradually reduced for homes valued between $1 million and $1.5 million, and no First-Time Home Buyers’ GST/HST Rebate is available when the home is valued at $1.5 million or more.
Applications for the rebate are now open.
How Much Is the New GST Rebate?
Alberta does not have a provincial sales tax, so buyers pay the 5% federal GST on a new home.
The new First-Time Home Buyers’ GST/HST Rebate works as a top-up to the existing GST/HST New Housing Rebate. When both rebates apply, an eligible first-time buyer may recover up to 100% of the federal GST.
For example, the CRA explains that an eligible buyer purchasing a qualifying $1.25-million home—halfway between $1 million and $1.5 million—may qualify for 50% of the maximum $50,000 rebate.
The actual calculation can depend on the transaction, including how the builder’s price is stated and whether GST is already included. Buyers should confirm the calculation with the builder, CRA, an accountant and their real-estate lawyer.
What About the Existing New Housing Rebate?
The existing GST/HST New Housing Rebate remains available to eligible buyers, including some buyers who are not purchasing their first home.
Under the existing program, the rebate is gradually reduced for homes priced between $350,000 and $450,000. It is generally unavailable when the home is valued at $450,000 or more.
For qualifying first-time buyers, the new FTHB rebate acts as a top-up to the existing rebate, potentially bringing the total federal GST relief to 100%.
Who Is Considered a First-Time Buyer?
Generally, a buyer must meet all the following requirements:
Be at least 18 years old
Be a Canadian citizen or permanent resident
Be purchasing or building the home as their primary residence
Not have lived in a home owned by the buyer or their spouse or common-law partner during the current calendar year or the previous four calendar years
Not have previously received the First-Time Home Buyers’ GST/HST Rebate
Have a spouse or common-law partner who has not previously received the rebate
The home can be a newly constructed or substantially renovated house purchased from a builder. Certain owner-built homes, co-operative housing shares, modular homes, mobile homes and floating homes may also qualify when the applicable CRA requirements are met.
Important Dates and Conditions
For a typical new home and land purchased together from a builder:
The purchase agreement must be entered into on or after March 20, 2025, and before 2031.
Construction or substantial renovation must begin before 2031.
The home must be substantially completed before 2036.
Ownership must transfer to the buyer before 2036.
The home must be purchased for use as the buyer’s primary residence.
The buyer must generally be the first person to occupy the home after construction or substantial renovation is completed.
The timing rules differ slightly for owner-built homes, homes on leased land and co-operative housing. Buyers in those situations should review the applicable CRA requirements carefully.
Bill C-4 received Royal Assent on March 12, 2026, formally creating the new rebate.
Can the Builder Credit the Rebate at Closing?
Yes. A builder may agree to credit the rebate against the amount you owe at closing.
If the builder provides the credit, the builder must submit the rebate application to the CRA. The buyer cannot submit another application for the same rebate unless the builder provided only the existing New Housing Rebate and not the new First-Time Home Buyers’ rebate.
The builder may ask you to sign documents assigning the rebate to them. Read those documents carefully and confirm what happens if the CRA later determines that you do not qualify.
What If the Builder Doesn’t Credit the Rebate?
If the builder does not pay or credit the rebate, an eligible buyer can apply directly through their CRA account or submit the required application by mail.
For a home and land purchased from a builder, the main application is Form GST190: GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
The application deadline is generally two years from the date ownership transfers to the buyer. Different filing requirements may apply when the buyer leases the land or builds the home.
Questions to Ask Before Signing a Builder Contract
Before relying on the rebate as part of your purchase budget, ask the builder:
Does the advertised price include GST?
Has any GST rebate already been deducted from the advertised price?
Will the builder credit both applicable rebates at closing?
Who will prepare and submit Form GST190?
Does the agreement require me to assign the rebate to the builder?
Who becomes responsible if the CRA later decides that I am ineligible?
Is the rebate shown clearly on the purchase contract and statement of adjustments?
These questions should be answered before the builder agreement becomes firm—not shortly before possession.
Frequently Asked Questions
Is the new-home GST rebate automatic?
No. The buyer must meet all eligibility requirements, and the required application must be submitted either by the builder or directly by the buyer.
Does the rebate apply to resale homes?
Generally, no. This rebate applies to qualifying newly built or substantially renovated homes and certain other eligible new-housing arrangements.
Can I qualify if my spouse previously owned a home?
Possibly, but the occupancy history matters. You generally cannot have lived in a home owned by you or your spouse or common-law partner during the current calendar year or the previous four calendar years. Confirm your circumstances with the CRA.
What happens if the home costs more than $1 million?
The rebate is gradually reduced between $1 million and $1.5 million. No First-Time Home Buyers’ rebate is available when the home is valued at $1.5 million or more.
Can I apply after taking possession?
Yes, when the builder has not credited the rebate and you otherwise qualify. The deadline for a typical home-and-land purchase from a builder is generally two years from the date ownership transferred to you.
Buying a New-Construction Home in the Edmonton Area?
The rebate can materially affect your purchasing budget, but it is only one part of a builder transaction.
Before signing, buyers should also understand the specifications, upgrade pricing, deposit schedule, construction timeline, inspection rights, closing adjustments and what happens if the completed home differs from the plans.
With more than 20 years of residential construction experience, I help buyers evaluate these details when purchasing new homes in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove and Stony Plain.
Call or text Jay Lewis at 780-220-8449
Jay Lewis | REALTOR® | RE/MAX Excellence | Lewis & Co. Realty
This article provides general information only and is not tax, accounting or legal advice. Rebate rules are technical and can change. Confirm your eligibility and rebate amount with the Canada Revenue Agency, a qualified accountant and a real-estate lawyer.
Official Sources
Information reviewed and updated September 4, 2026.