GST on New Builds in Edmonton: Who Pays and How the Rebate Works
New homes carry 5% GST that resale homes don't — but a federal rebate, and a big new break for first-time buyers, can erase most or all of it. Here's exactly how it works in Alberta in 2026.
Updated June 2026 · Reading time ~9 minOne of the biggest surprises for Edmonton buyers comparing a brand-new build against a resale home is tax. A used home generally carries no GST. A new one does — 5% of the purchase price, which on a $500,000 build is $25,000. That single line can quietly reshape your budget if you don't see it coming.
The good news: most owner-occupiers recover a chunk of that GST through a rebate, and first-time buyers may now wipe it out entirely. This guide explains who actually pays GST on a new Edmonton home, how the rebates work, and the one contract clause that decides whether you ever see the money.
When GST applies — and when it doesn't
The rule is simpler than most buyers expect: GST applies to new and substantially renovated homes, not to ordinary resale homes.
- New build from a builder — GST applies (5%).
- Pre-construction or new condo — GST applies (5%).
- A home where at least ~90% of the interior was gutted and rebuilt ("substantial renovation") — GST applies.
- A normal used/resale home — generally GST-exempt.
Alberta keeps this relatively clean compared to other provinces. Because Alberta has no provincial sales tax and no HST, the only tax in play on a new home is the 5% federal GST. A buyer in Ontario, by contrast, faces 13% HST on a new build and a more tangled set of provincial rebates.
"GST included" — what Edmonton builders really mean
Walk through almost any Edmonton showhome and you'll see prices advertised as "GST included." It sounds like the tax is simply handled. The reality is more conditional.
"GST included" usually means the builder has assumed you qualify for the GST New Housing Rebate and already netted that rebate out of the advertised price. In other words, the sticker price bakes in a rebate you haven't been confirmed for yet.
Why this matters before you sign
If it turns out you don't qualify for the rebate — for example, you're buying as an investment rather than a primary residence — the builder can add that rebate amount back onto your price. A home advertised at "$500,000 GST included" can become more expensive at closing. Always confirm, in writing, how GST and the rebate are handled in your specific contract.
The standard GST New Housing Rebate
This is the long-standing rebate available to most buyers who purchase a new home as their primary residence (you don't have to be a first-time buyer to get it).
It works on a sliding scale tied to price:
- The rebate is 36% of the GST paid, up to a maximum of $6,300.
- That maximum is reached on homes priced at $350,000 or less.
- Between $350,000 and $450,000, the rebate phases out on a sliding scale.
- Above $450,000, this federal rebate is $0.
That $450,000 ceiling is the catch. With many Edmonton new builds priced above it, a lot of buyers historically got little or nothing from this program — which is exactly the gap the new first-time-buyer rebate was designed to close.
The first-time buyer GST rebate (the big one)
Introduced by the federal government in 2025, the First-Time Home Buyers' (FTHB) GST Rebate is a far more generous, temporary program — and for many Edmonton buyers it's a game-changer.
The headline numbers:
- Up to $50,000 in GST recovered.
- 100% of the GST eliminated on a qualifying new home valued up to $1 million.
- A partial, phasing-out rebate on homes between $1 million and $1.5 million.
- No rebate at or above $1.5 million — the cut-off is hard, so a price just over the line loses the entire benefit.
Because the vast majority of Edmonton-area new builds fall well under $1 million, a qualifying first-time buyer here can realistically see the full 5% GST eliminated. On a $500,000 build, that's $25,000 that simply disappears from the cost of buying.
Who qualifies
The eligibility rules are stricter than the "haven't owned in the last four years" test some buyers know from other programs. To qualify, you generally must meet all of these:
- You're at least 18, and a Canadian citizen or permanent resident.
- You're buying the home as your primary residence and will be the first to occupy it.
- You entered the purchase agreement with the builder on or after the program's start date in 2025 and before 2031.
- Neither you nor your spouse/common-law partner has previously claimed this FTHB GST rebate.
The program also covers certain owner-built homes, with its own construction and completion deadlines. The standard New Housing Rebate above still exists as a separate, smaller fallback for buyers who don't meet the first-time criteria.
The clause that decides whether you keep the rebate
Here's the part that trips up the most Edmonton buyers. Qualifying for a rebate and pocketing it are two different things — and the difference is one clause in your builder contract.
In Alberta, the overwhelming majority of builder agreements include a rebate assignment. You assign your rebate to the builder, and in exchange the builder credits that amount against your purchase price at closing. The net effect: the rebate is already reflected in the "GST included" price, and you don't receive a separate cheque later.
That's not a bad thing — it lowers your upfront cost. But it has two consequences worth understanding:
- If your rebate is assigned and you qualify, the benefit is baked into your price. There's no cash-back after closing because you already received it as a discount.
- If GST was not netted out — some contracts have the buyer pay full GST and file for the rebate themselves — then you apply to the CRA after closing and receive the refund directly. Many Alberta first-time buyers don't realize they're owed this and never file.
The action item is simple: before you sign, ask your builder (and have your lawyer confirm) exactly how GST and the rebate are structured in your contract — assigned and credited, or paid by you and claimed back. It determines whether you owe more at closing, get a discount, or have a refund to chase afterward.
GST rebate calculator
Enter the pre-GST price of a new Edmonton home to see the 5% GST, your estimated rebate, and the net GST you'd actually bear. Toggle between a first-time buyer and a regular primary-residence buyer to compare. This is an estimate — always confirm your exact eligibility with your builder, lawyer, and the CRA.
Type any amount — results update as you go.
As a qualifying first-time buyer under $1M, your GST is fully rebated.
Estimate only. The first-time buyer rebate requires you to meet all CRA eligibility rules; the standard rebate applies to primary residences and phases out between $350,000 and $450,000. Rebate handling (assigned to the builder vs. claimed by you) depends on your contract.
Frequently asked questions
Do I pay GST on a resale home in Edmonton?
Generally, no. Ordinary used residential homes are exempt from GST. The 5% GST applies to new builds, pre-construction homes, and substantially renovated homes — not to a typical resale purchase.
How much GST will I pay on a $500,000 new build in Alberta?
The GST is 5%, or $25,000 on a $500,000 home. However, an eligible owner-occupier recovers part of that through the standard New Housing Rebate, and a qualifying first-time buyer can recover up to 100% of it — meaning the GST can effectively drop to zero on a home under $1 million.
What does "GST included" mean in a builder's price?
It usually means the builder has assumed you qualify for the GST New Housing Rebate and already subtracted that rebate from the advertised price. If you don't actually qualify — for example, you're buying as an investment — the builder may add that amount back, raising your price at closing. Always confirm how it's handled in your contract.
I'm a first-time buyer — do I get a cheque after closing?
It depends on your contract. In most Alberta builder deals, you assign the rebate to the builder and receive it as a credit against the purchase price, so there's no separate cheque — the benefit is already in your price. If instead you paid the full GST upfront, you apply to the CRA after closing and receive the refund directly. Check which structure your contract uses.
Does the first-time buyer GST rebate apply to investment properties?
No. The first-time buyer rebate is only for homes used as your primary residence. Investors buying new homes to rent out fall under a separate program, the GST New Residential Rental Property Rebate, which has its own rules and amounts.
Thinking about a new build in Edmonton?
Explore new-construction communities across the Edmonton area — and read our full breakdown of what it costs to sell a home if you're moving up.
Explore yeg.homesThis article is for general information only and does not constitute legal, financial, or tax advice. GST rules, rebate thresholds, and eligibility change and the first-time buyer rebate is a time-limited federal program — always verify current figures and your eligibility with the Canada Revenue Agency, your builder, and a real estate lawyer before making decisions. © 2026 yeg.homes
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