What Is the GST Rebate, and Why Should You Care?

by Joel Borsos

When you buy a brand-new home in Calgary, you’re usually charged 5% GST (Goods and Services Tax). But here’s the good news: if that home is going to be your primary residence, and the purchase price is under $450,000, you may be eligible to get some—or even most—of that tax back.

That’s the New Housing Rebate, and it could mean up to $6,300 back in your pocket. That’s money you can put toward furniture, landscaping, or a little cushion in your savings account.

How It Works:

Homes under $350,000 are eligible for the full rebate (36% of the GST paid).
Homes priced between $350,000 and $450,000 receive a partial rebate that decreases in proportion to the price.
Homes over $450,000 unfortunately don’t qualify.

Pro tip: Some builders already include the rebate in their advertised prices—others don’t. Make sure to ask, so you know exactly what you're paying.

Why New Builds Are Looking More Attractive Than Ever

Beyond the rebate, new homes offer a lot of value:

Move-in ready with modern layouts, energy-efficient features, and fewer surprises
Customization options, especially if you buy early in the construction process
Warranty coverage, which gives peace of mind during those first few years

And when you factor in the GST rebate? Suddenly, that shiny new home might be a lot more affordable than you thought.

What About Resale Homes?

Resale properties don’t come with GST, which can seem like a win. But they also don’t come with:

A tax rebate
Modern finishes or energy efficiencies
The ability to choose your finishes or avoid renovation costs

Resales are great in established neighbourhoods or if you’re looking for a quick possession, but financially, they don’t always come out ahead once you crunch the numbers.

Final Thoughts

Ultimately, the ideal home is the one that aligns with your lifestyle, budget, and future plans. But if you’re leaning toward a new build, the GST rebate could be the deciding factor that makes it not just exciting—but smart, too.

Curious about which Calgary new builds qualify for the rebate? Let’s connect—I’d love to help you explore your options and make sure you’re getting the most value for your investment.