Buying a new or presale condo in British Columbia comes with an extra cost that often surprises buyers — the federal Goods and Services Tax (GST). At 5 percent of the purchase price, GST can add tens of thousands of dollars to the total cost of your home. In a province that is already the most expensive housing market in Canada, this tax makes affordability even tougher.
But recent changes have introduced new exemptions for first time buyers, though with important limits. Here is what you need to know about GST on new condos in BC in 2025.
The Basics: GST on New Homes
- Amount: GST is charged at 5 percent of the purchase price on all new and presale condos.
- Example: On an $800,000 presale condo in Burnaby, GST adds an extra $40,000 to the price.
- When it applies: GST is due at completion, when the unit is registered in your name.
This makes new condos significantly more expensive than resales, since resale homes are exempt from GST (the tax was already paid when the property was first sold).
The New GST Exemption for First Time Buyers
In 2025, the federal government introduced a targeted GST exemption for first time homebuyers purchasing new housing. On paper, this looks like a game changer. But here are the details:
- The exemption only applies up to a set purchase price threshold (for example, homes up to $600,000 may qualify).
- Once the home price exceeds the threshold, the exemption phases out quickly.
- In Metro Vancouver, where the average new condo is often $750,000 to $900,000 or higher, many buyers are priced out of the benefit.
This means while the exemption helps in smaller markets across Canada, it has limited impact in BC, where even entry level condos often exceed the cutoff.
Why BC Feels the Heaviest Impact
BC is the most expensive province for real estate, with Vancouver leading the country in both presale and resale pricing. Because the GST is a fixed 5 percent tax, the absolute dollar amount buyers pay here is far higher than in other provinces.
- A new condo in Vancouver priced at $900,000 = $45,000 GST
- A new condo in Calgary priced at $400,000 = $20,000 GST
Same tax rate, very different financial hit.
Can You Avoid GST on a New Condo?
There are a few scenarios where GST may not apply:
- Resale units: If you buy a condo that is not brand new, GST is not charged.
- Assignments: Depending on how the contract is structured, assignments can sometimes reduce the GST impact, but buyers should review carefully with an accountant.
- Rebates: If you live in the home as your primary residence, you may qualify for a partial GST rebate, though again, higher priced homes in Vancouver often exceed the eligibility range.
What Buyers Should Watch For
- Always budget for GST in addition to the purchase price — do not assume it is included.
- Ask the developer or your realtor to clarify whether listed prices are “plus GST” or “GST included.”
- Factor in closing costs such as legal fees, property transfer tax, and GST when planning your total budget.
The Bottom Line
In British Columbia, GST adds a significant extra cost to buying a new or pre sale condo. While the new first time homebuyer exemption offers relief on paper, most Metro Vancouver condos are priced too high to qualify. For buyers here, the GST remains a major consideration, and one reason why resale condos continue to look attractive compared to presales.