Giuseppe Gaspari
REALTOR® | Okanagan Real Estate Specialist
Helping families find their perfect Okanagan home since 2018
Last updated: April 2026
Do You Pay GST on a Condo in BC?
This is the #1 question I get from buyers looking at new builds in Kelowna. The answer depends entirely on one thing: is the condo new or resale?
New Construction
- Brand new condos from a developer
- Pre-sale / pre-construction units
- Substantially renovated homes
Pre-sale condos: GST is usually included in the listed price, but not always. You need to confirm this.
Resale Condos
- Previously owned condos
- Any condo that's been lived in
- Private sale or MLS resale
This is one of the biggest financial advantages of buying resale. No GST, period.
The Trap I See Buyers Fall Into
A buyer sees a new condo listed at $500,000 and budgets exactly $500,000. Then at closing they learn GST wasn't included in that price — and they owe an additional $25,000. I've literally had calls from buyers in tears over this. It's completely avoidable if you ask the right question up front.
How Much GST Will You Pay?
The math is simple: 5% of the purchase price. But when you see the actual dollar amounts, it hits different. Here's what GST looks like at common Kelowna price points:
GST at 5% by Purchase Price
Before you panic — read the rebate section below.
The federal government offers a rebate that can knock thousands off your GST bill. It won't eliminate it entirely on most Kelowna condos, but it helps.
The GST New Housing Rebate
The federal GST New Housing Rebate gives back a portion of the GST you pay on a new home. Here are the rules — and they matter, because the thresholds haven't kept up with BC home prices.
You get 36% of the GST back, up to a maximum of $6,300. On a $325,000 condo, that's $5,850 back in your pocket.
The rebate phases out as the price rises from $350K to $450K. At $400K you get roughly half the maximum rebate. At $449K you get almost nothing.
If your new condo costs more than $450,000, the federal rebate is $0. For most Kelowna new builds, this means no federal rebate. It's frustrating, but that's the current threshold.
The federal rebate only applies if you (or an immediate family member) intend to live in the condo as a primary residence. Buying it as a rental or investment? You don't qualify for the federal rebate. (There's a separate rental rebate — talk to your accountant.)
On top of the federal rebate, BC offers its own rebate on the provincial portion of the HST — wait, BC doesn't have HST anymore. Here's what actually applies:
BC charges a 7% Provincial Sales Tax (PST) separately from GST, but PST does not apply to real estate purchases. So the only sales tax on your new condo is the 5% federal GST. The “BC rebate” people reference usually means the BC New Housing Rebate tied to the transition from HST back to GST+PST, which provided rebates on homes up to $525,000. That specific program has wound down. Today, you're dealing with the federal GST rebate only. Always confirm with your lawyer or accountant for the most current rules.
Not sure what you qualify for?
I can connect you with a tax professional who specializes in new-build purchases.
GST Rebate Examples (Real Numbers)
I like to show buyers the actual math. No vague percentages — just what you'll write on the cheque. Here are three scenarios at different price points:
Example 1: $325,000 New Condo
Under the $350K threshold — full federal rebate
Example 2: $400,000 New Condo
Between $350K–$450K — partial federal rebate
Example 3: $550,000 New Condo
Over $450K — no federal rebate
The reality for most Kelowna buyers: if you're buying a new condo over $450K (which is most of them), plan for the full 5% GST with no federal rebate. It's a significant cost, and it needs to be in your budget from day one.
Is GST Included in the Developer's Price?
This is where things get messy. Some developers include GST in their advertised price. Others don't. There's no standard in BC, and the difference can be tens of thousands of dollars.
GST Included
The listed price is the price you pay (plus closing costs). A $500K listing means $500K total purchase price. The developer has factored GST into their pricing.
More common with larger, established developers
GST NOT Included
The listed price is before tax. A $500K listing actually costs $525,000 ($500K + $25K GST). Budget an extra 3–5% above the listed price.
Common with smaller developers and some pre-sale projects
My Advice: Three Words
“Is GST included?”
Ask this before you get emotionally attached to a unit. Ask it at the sales center. Ask it in writing. And make sure the answer is documented in your purchase agreement. I've had verbal answers at sales centers that didn't match what was in the contract. The contract is what counts.
GST on Assignment Sales
Assignment sales are when you buy someone else's pre-construction contract before the building is complete. They're common in hot markets, and the GST rules are more complicated than a standard new purchase.
You pay 5% GST on the total purchase price of the unit — not just the assignment fee. If the original contract was $450K and you're paying $450K to complete, you owe GST on the full $450K.
If the assignor (original buyer) is charging a markup — say a $30,000 assignment fee — you may also owe GST on that fee. The tax treatment depends on whether the assignor is considered to be in the “business” of selling real estate.
Double-check with your accountant.
Assignment GST rules have been tightened by the CRA in recent years. The tax implications can be significant. This is not a DIY situation — get professional tax advice before signing an assignment contract.
New vs Resale: Does the GST Make New Condos More Expensive?
On paper, yes — adding 5% to the price is a real cost. But the full picture is more nuanced than just comparing sticker prices. Here's how it actually plays out:
Sometimes new is still the better deal when you factor in warranties, zero maintenance for the first few years, and modern energy efficiency that lowers your utility bills. Other times, resale wins — especially if you find a well-maintained unit in a building with strong strata reserves.
There's no one-size-fits-all answer. That's why I walk buyers through the numbers for their specific situation.
GST on New Condos: FAQ
Do I pay GST on a resale condo in BC?
No. GST only applies to new construction, including pre-sale and pre-construction condos. When you buy a resale (previously lived-in) condo, there is no GST. You will still pay the BC Property Transfer Tax on any purchase, but GST is exclusively a new-build cost.
How do I claim the GST New Housing Rebate?
You can claim the federal GST New Housing Rebate by filing Form GST190 with the CRA. Many developers handle the rebate at closing so you only pay the net GST amount. If the developer does not handle it, you file the form yourself within two years of closing. The rebate applies only if the home is your principal residence and the purchase price is under $450,000.
Is GST included in pre-sale condo prices in BC?
It depends on the developer. Some include GST in the advertised price, others list it as an additional cost on top. Always ask the developer or their sales team directly: 'Is GST included in the listed price?' and get the answer in writing in the purchase agreement. This can mean a difference of $20,000-$40,000 on your final cost.
Can investors claim the GST rebate on a new condo?
Investors cannot claim the federal GST New Housing Rebate (which requires principal residence use). However, if you purchase a new rental property and rent it out, you may qualify for the GST New Residential Rental Property Rebate instead. The rules and amounts differ. Consult an accountant who specializes in real estate investments for your specific situation.
Do I pay GST AND Property Transfer Tax on a new condo in BC?
Yes, they are separate taxes. GST (5%) is a federal tax on new construction only. The BC Property Transfer Tax (1% on the first $200K, 2% on $200K-$2M, 3% above $2M) applies to all real estate purchases, new or resale. First-time buyers may qualify for a PTT exemption on homes under $500,000 (or partial exemption up to $525,000). These are two different costs to budget for.
Related Guides
Need Help With the Numbers?
I'm not an accountant — but I've walked hundreds of buyers through the true cost of new vs resale in Kelowna. I'll help you understand what you're actually paying, connect you with the right professionals, and make sure nothing catches you off guard at closing.
Free, no-obligation conversation. I just want you to go in with your eyes open.