Taxes on a BC Presale: GST, the First-Time Buyer GST Rebate, PTT and Exemptions
GST, the new First-Time Buyer GST Rebate worth up to $50,000, and the Property Transfer Tax exemptions every BC presale buyer should understand before signing.
New homes are taxed differently from resale homes, and a change that took effect in 2025 put real money back in first-time buyers’ pockets. If you are buying a presale in Greater Vancouver, three taxes matter: GST, the new First-Time Home Buyers’ GST Rebate, and Property Transfer Tax. Here is how each one works.
The figures below were current as of June 2026. Tax rules change with each budget, so confirm the current numbers with your lawyer or accountant before you rely on them.
GST on a new home
New construction is subject to 5% GST. Resale homes generally are not, which is one of the real cost differences between buying new and buying used. On a presale, the GST is calculated on the purchase price and is typically due at completion.
The new First-Time Home Buyers’ GST Rebate
The federal government introduced a First-Time Home Buyers’ GST Rebate that can eliminate the GST entirely for eligible buyers. The headline numbers:
- A full rebate of the 5% GST on a new home priced up to $1 million, a saving of up to $50,000.
- A partial rebate between $1 million and $1.5 million, phasing down as the price rises.
- No rebate above $1.5 million.
The timing rules matter for presale buyers specifically. The purchase agreement generally must be signed with the builder on or after May 27, 2025, and before 2031, with construction beginning before 2031. The CRA began accepting applications in March 2026. If you signed before May 27, 2025, you generally do not qualify, which is why your contract date can be worth tens of thousands of dollars.
Property Transfer Tax and its exemptions
BC charges Property Transfer Tax (PTT) at completion. The general rate is 1% on the first $200,000, 2% up to $2 million, 3% above that, and a further 2% on residential value above $3 million. Two exemptions matter to presale buyers:
- Newly Built Home Exemption. A full PTT exemption on a qualifying new home with a fair market value up to $1,100,000, phasing out to $1,150,000. You must be a Canadian citizen or permanent resident and use the home as your principal residence.
- First-Time Home Buyers’ Exemption. A full exemption on qualifying homes up to $835,000 (the first $500,000 of value is fully exempt), phasing out to $860,000.
You generally claim whichever exemption benefits you most. Confirming that you qualify, and which one to use, can save thousands at completion.
Putting it together
For an eligible first-time buyer purchasing a new home under $1 million, the combination is significant: no GST through the rebate, plus a PTT exemption on a newly built home. That can be a five-figure swing versus an otherwise identical resale purchase. The catch is eligibility, and the contract date is often the deciding factor, so plan the tax side before you sign, not after.
This is part of our Complete Guide to Buying a Presale in BC. If you want help working out the actual tax math on a specific unit, I help Greater Vancouver presale buyers run the numbers in plain language, at no cost to you. Book a consultation.
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This article is general information, not tax advice. Tax rates, thresholds, and eligibility rules change and depend on your circumstances. Confirm the current numbers with a lawyer or accountant before relying on them.
