GST on new homes in Alberta is 5%, and it applies to newly built homes — and substantially renovated homes — while resale homes are generally GST-exempt. Alberta has no provincial sales tax, so the tax on a new build is 5% only, but on a new home that 5% is a real line in your budget that must be confirmed before you sign, not discovered at closing.

Which home purchases attract GST in Alberta?

New construction is the main one: a home bought from a builder, including many spec and custom builds, is a taxable purchase. Substantially renovated homes can also be treated as new for GST purposes, which surprises buyers who assume any lived-in home is exempt.

Resale homes are generally GST-exempt. Assignment sales can differ from a standard resale, and purchases involving land can be treated differently again — the tax treatment varies by transaction type, so confirm how GST applies on your specific purchase with your lawyer before conditions are removed.

Is GST included in the builder's price?

Sometimes — and that is exactly the trap. Builders may quote a price net of GST, meaning the 5% is added on top, or quote it in. Two homes that look priced the same can differ by the full GST amount once the contract wording is read.

Ask the builder directly, in writing: is this price plus GST or GST included, and how is GST shown in the contract? Then run the full number through your budget. A free home evaluation discussion on the resale side can also help you compare a new build's true all-in cost against comparable resale homes.

How does the GST New Housing Rebate work?

The longstanding GST New Housing Rebate returns 36% of the GST paid, to a maximum of $6,300, on qualifying new homes. The full rebate applies at a purchase price of $350,000 or less, it phases out between $350,000 and $450,000, and it is zero at $450,000 or more.

To see the shape of the math only — an illustration with round numbers, not a market claim: on an illustrated $400,000 new home, GST at 5% is $20,000, and the rebate at that price point would be partial because the home sits inside the phase-out range. Your actual rebate depends on your price and eligibility — confirm it on your file with your lawyer.

Is there extra GST relief for first-time buyers?

A separate, newer federal first-time home buyers' GST relief has been announced for eligible first-time buyers — up to 100% of the GST on homes up to $1M, phasing out to $1.5M. Eligibility is date-specific and depends on your contract and possession dates.

Do not budget as if that relief is guaranteed until it is confirmed for your purchase. Check whether your contract and possession dates qualify with your lawyer and builder, and verify the current rules with the CRA before you rely on them in an offer.

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What should you ask before signing a new-build contract?

Ask five things: whether the price is plus GST, how GST is handled on upgrades and lot premiums, whether an assignment is permitted and how it is taxed, what happens if the home changes during construction, and which rebates you may qualify for. Get the answers in the contract.

For the wider picture behind new-build pricing, see Edmonton's September 2026 market update.

Looking at a new build in Edmonton and want the GST and rebate picture clear before you sign? Call me at 780-720-8240 — we will confirm what applies to your purchase and build it into your budget.

By Travis Bannert, Realtor and Mortgage Broker
Travis Bannert, Realtor® | Bridge Realty Group, Maxwell Progressive Realty | 780-720-8240 | bridgerealtygroup.ca