GST and Real Estate

Resale homes are exempt from GST.

GST and New Homes
Primary residence may qualify for parital rebate.

$350,000 or less GST is 3.84% (36% rebate)
$350,000 to $450,000 partial rebate (see below)
$450,000 or more GST is 6% (no rebate)

For new homes purchased for $350,000 to $450,000, the rebate gradually declines to zero as the purchase price increases. The rebate decreases by 1% for every $1,000 increase in purchase price. For example: If you paid $400,000 for a new home, the purchase price is $50,000 over, causing the discount to decline by 50%. Thus the $7,560 rebate is reduced to $3,780. GST payable would be: $400,000 at 6% is $24,000 less $3,780 or $20,220.

(To be used as a guide only)