Taxes on a BC Presale: GST, the Rebate and Property Transfer Tax

Taxes are where presale budgets break. The purchase price is not the cost, the taxes are not payable when you sign, and two of the biggest exemptions are tested at completion rather than at signing — years after you committed. Here is the whole picture.

The two taxes that matter

• GST — 5% on new construction, payable at completion, not at signing.
• Property Transfer Tax (PTT) — a provincial tax on the transfer of title, also payable at completion.

Both are in addition to the purchase price. Neither is included in the number on the price list, and neither is due when you hand over your first deposit.

GST on a presale

New homes attract 5% GST. Resale homes generally do not — which is one of the real cost differences between presale and resale.

On an $800,000 presale that is $40,000, due at completion, on top of your deposits and your mortgage.

The first-time buyer GST rebate

The federal first-time home buyer rebate covers new homes under $1 million in full, then phases out up to $1.5 million. Above $1.5M there is no rebate. Because GST is 5%, the maximum the rebate can be worth is $50,000.

To qualify you must be at least 18 and a Canadian citizen or permanent resident, and neither you nor your spouse or common-law partner can have lived in a home either of you owned as a primary residence at any time in the current calendar year or the previous four calendar years. Neither of you can have claimed this rebate before, and you must be the first person to occupy the home.

The date window is the trap for presale buyers. Your contract of purchase and sale with the builder must have been entered into on or after 20 March 2025 and before 2031, construction must begin before 2031, and the home must be substantially complete before 2036. A presale signed in 2023 or 2024 — much of the cohort now completing across Metro Vancouver — does not qualify, however well the buyer meets every other test.

Three things buyers get wrong about it:

• It is tested at completion. You must qualify then, not when you signed. Marriage, a co-purchaser who already owns, or a change in residency can all move you out of eligibility during a four-year build.
• The phase-out is a slope, not a cliff edge — but the top is. Crossing $1.5M removes the rebate entirely. If your purchase price plus upgrades lands near that line, model it before you add the upgrades.
• The developer does not warrant your eligibility. Your contract almost certainly makes it your responsibility. If you assumed a rebate you do not get, that shortfall is yours to fund at completion.

There is also a separate, older GST New Housing Rebate aimed at much lower price points. In Metro Vancouver it is rarely relevant.

Property Transfer Tax

PTT is charged on the fair market value of the property at the time title transfers, on a tiered basis:

• 1% on the first $200,000
• 2% on the portion between $200,000 and $2,000,000
• 3% on the portion between $2,000,000 and $3,000,000
• a further 2% on the residential portion above $3,000,000

On an $800,000 home that is $14,000. On a $2.5M home it is roughly $53,000. The tiers are marginal, so only the portion in each band is taxed at that band’s rate.

The presale-specific trap

PTT is assessed on fair market value at registration, not on the price you agreed years earlier. For an ordinary arm’s-length presale that completes normally, the contract price is generally accepted as fair market value.

Where this changes is assignments. If you bought an assignment, the value assessed may reflect what you actually paid including the assignment premium, not the original contract price. Buyers of assignments are sometimes surprised by a PTT bill calculated on a higher number than they expected. Confirm the treatment with your lawyer before you commit.

The two PTT exemptions

• First Time Home Buyers’ Programme — a full or partial exemption for qualifying first-time buyers below a stated price threshold.
• Newly Built Home Exemption — a full or partial exemption on new construction below a stated threshold, available whether or not you are a first-time buyer.

You generally claim one, not both. The thresholds for both are adjusted by the province from time to time and have moved more than once in recent years, so do not rely on a figure you read anywhere — including here — without confirming what applies on your completion date. Run your numbers through the BC presale tax calculator and confirm with your lawyer.

Like the GST rebate, these are tested at completion.

Additional taxes that may apply

• Additional Property Transfer Tax — an extra 20% on residential purchases by foreign nationals in specified regions including Metro Vancouver. Separate from, and in addition to, the federal ban on purchases by non-Canadians, which runs through January 1, 2027.
• Speculation and Vacancy Tax — an annual provincial tax on homes left vacant in designated areas. Presale owners should note this begins to apply once you own a completed home, not during construction.
• Empty Homes Tax — the City of Vancouver’s own annual vacancy tax, on top of the provincial one.
• GST on assignment fees — assignment profits generally attract GST on the assignment amount, and the profit itself is taxable income.

What this looks like in practice

On an $800,000 Metro Vancouver presale completing for a first-time buyer who qualifies for the GST rebate and a PTT exemption, the tax bill at completion can be close to nil. For the same home bought by someone who qualifies for neither, it is around $54,000.

That is the same property, the same price, and a $54,000 difference decided entirely by circumstances tested at completion. It is why the tax question belongs in your decision at signing rather than in a conversation with your lawyer three weeks before you close.

Frequently Asked Questions

Do I pay GST on a presale in BC?

Yes. New construction attracts 5% GST, payable at completion rather than at signing. Resale homes generally do not attract GST.

When are presale taxes actually due?

At completion, alongside the balance of the purchase price. Your deposits do not attract GST or PTT as they are paid.

Can I include GST in my mortgage?

Often yes, since it forms part of the total cost at completion, but that depends on your lender and your qualifying position. Confirm with a mortgage broker early rather than assuming.

Do I qualify for the first-time buyer GST rebate?

The full federal rebate applies to new homes under $1M and phases out to $1.5M, and eligibility is assessed at completion. Because a presale completes years after signing, your circumstances at that future date are what count.

Is PTT calculated on my contract price or the value at completion?

On fair market value at the time title transfers. For a normal arm’s-length presale the contract price is usually accepted. For assignments the assessed value may be higher, so get advice.

Are the PTT exemption thresholds fixed?

No. The province adjusts them periodically. Confirm the current thresholds for your completion date rather than relying on figures published earlier.

Where to go next

• BC Presale Tax Calculator — model GST, PTT and rebates against your price point.
• Presale Deposits in BC — what you pay and when.
• Condo Assignments — and the tax consequences of selling early.
• The Complete Guide to Buying a Presale in BC, or browse by city: Vancouver, Burnaby, Surrey, Langley. Looking at ground-oriented homes instead? See Vancouver presale townhomes.

GST figures verified 5 August 2026 against the Canada Revenue Agency’s first-time home buyers’ GST/HST rebate guidance. The rebate was enacted by Bill C-4, which received royal assent on 13 March 2026.

This guide provides general information about taxes on presale property in British Columbia, not tax or legal advice. Rates, thresholds and exemptions change, and eligibility is assessed at completion — confirm your position with a licensed lawyer and an accountant before you rely on any figure here.