PTT & GST Exemptions for BC and Alberta Home Buyers

Whether you’re a first-time buyer eyeing a condo in Vancouver or a new build in Calgary, taxes are likely top of mind. Two significant costs that can catch buyers off guard are Property Transfer Tax (PTT) in British Columbia and GST on new construction across Canada. The good news? There are meaningful exemptions available — and understanding them could save you tens of thousands of dollars.

As a mortgage broker licensed in both British Columbia and Alberta, I want to walk you through exactly what applies in each province, who qualifies, and how much you could save.

Property Transfer Tax (PTT) — A BC-Specific Tax

First, let’s clear something up: Property Transfer Tax only applies in British Columbia. If you’re purchasing in Calgary or Edmonton, you won’t pay PTT. This section is specifically relevant to buyers in Vancouver and throughout BC.

A note for readers in other provinces: While PTT is a BC tax, it’s worth knowing that similar land transfer taxes exist elsewhere in Canada — Ontario and Manitoba, for example, have their own versions, and Toronto buyers pay an additional municipal land transfer tax on top of Ontario’s. Since my practice is focused on BC and Alberta, I’ll be sticking to those two provinces in this article — but if you’re purchasing elsewhere in Canada, I’d encourage you to research your province’s specific land transfer tax rules or speak with a local professional.

What Is Property Transfer Tax?

PTT is a one-time provincial tax paid when you take ownership of a property in BC. It’s calculated as follows:

• 1% on the first $200,000 of the purchase price
• 2% on the portion between $200,000 and $2,000,000
• 3% on any portion above $2,000,000

On a $900,000 home, for example, you’d be looking at roughly $16,000 in PTT — before any exemptions. That’s a significant cost, which is why knowing your exemptions matters.

PTT Exemption #1: First-Time Home Buyers Program

This has been around for years, but the thresholds were significantly updated in April 2024, making it more relevant than ever in today’s market.

Who qualifies?

To be eligible, you must:

• Be a Canadian citizen or permanent resident
• Have lived in BC for at least 12 consecutive months immediately before the purchase date, or have filed at least 2 income tax returns as a BC resident in the last 6 years
• Have never owned a principal residence anywhere in the world
• Use the property as your primary residence after purchase

How much can you save?

• Full exemption if the property’s fair market value is $835,000 or less — the exemption applies to the first $500,000, potentially saving you up to ~$8,000
• Partial exemption if the fair market value is between $835,000 and $860,000
• No exemption if the property exceeds $860,000

Important note for Vancouver buyers: With the Vancouver market being what it is, many properties exceed the $860,000 threshold. If that’s your situation, the newly built home exemption (below) may be more relevant.

PTT Exemption #2: Newly Built Home Exemption

This exemption was significantly expanded in April 2024 and is one of the most valuable programs available for buyers purchasing new construction in BC.

What qualifies as a “newly built home”?

• A brand-new house built on vacant land
• A new apartment in a newly constructed condominium building
• A manufactured home on vacant land
• Other newly built residential properties that have never been occupied

How much can you save?

• Full exemption if the fair market value is $1,100,000 or less (raised from $750,000 as of April 1, 2024)
• Partial exemption if the fair market value is between $1,100,000 and $1,150,000
• No exemption above $1,150,000

On a $900,000 new build, this exemption could save you approximately $14,000–$16,000.

Eligibility requirements:

• You must move into the property within 92 days of registration
• You must continue to occupy it as your principal residence until at least the first anniversary of registration
• The property must be in BC

Heads up: You cannot combine this exemption with the first-time buyer exemption on the same property — but you can choose whichever provides the greater benefit. For most new construction buyers in Vancouver, the newly built home exemption offers more savings.

Additional PTT Exemption: Purpose-Built Rental Housing (2025–2030)

Starting January 1, 2025, BC introduced a new PTT exemption for purpose-built rental buildings with four or more self-contained units intended for long-term rental. This exemption runs through December 31, 2030, and is designed to encourage the development of more rental housing supply across the province. If you’re an investor or developer looking at this type of project, this is well worth exploring.

GST on New Construction — Applies Across Canada, Including BC and Alberta

Unlike PTT, GST applies to new construction purchases everywhere in Canada — including Vancouver, Calgary, and Edmonton. Resale homes are generally exempt from GST, but if you’re buying a brand-new home directly from a builder, GST (at 5%) applies.

The New Federal GST Rebate for First-Time Home Buyers (2025)

On May 27, 2025, the federal government introduced a major new GST rebate specifically for first-time home buyers purchasing new construction. This is one of the biggest housing affordability measures Canada has seen in years.

Here’s what it offers:

• Full GST rebate (up to $50,000) for first-time buyers purchasing a new home valued at $1,000,000 or less
• Partial rebate for new homes valued between $1,000,000 and $1,500,000
• No rebate for homes above $1,500,000

To qualify, you must:

• Be a Canadian citizen or permanent resident, aged 18 or older
• Be a first-time home buyer (you and your spouse/common-law partner must not have owned a home you lived in during the current year or any of the four preceding years)
• Purchase a newly built home directly from a builder or developer — resale homes do not qualify
• Enter into your purchase and sale agreement after May 26, 2025 (or after March 19, 2025, under Bill C-4 as currently proposed)
• Construction must begin before 2031 and be substantially completed before 2036

How is the rebate applied?

In most cases, the builder applies the rebate directly at closing — meaning you simply pay the net amount (purchase price minus the rebate), and the builder claims it back from the government. In owner-built situations, you pay GST in full and then claim the rebate directly from the Canada Revenue Agency (CRA).

How does this affect Vancouver and Calgary buyers?

This rebate applies equally in BC and Alberta, making it highly relevant whether you’re buying a new condo in Vancouver’s Brentwood neighbourhood or a new townhome in Calgary’s southeast. On a $900,000 new build, a 5% GST would normally add $45,000 to your costs — this rebate could eliminate that entirely.

The Existing GST/HST New Housing Rebate

Even before the 2025 changes, there was an existing GST new housing rebate available to all buyers (not just first-time buyers) of new construction homes. However, the previous thresholds were much lower — the full rebate applied only to homes under $350,000, with a partial rebate up to $450,000. Given today’s home prices in Vancouver and Calgary, most buyers didn’t benefit from this existing rebate.

The new 2025 first-time buyer rebate is specifically designed to address this gap and bring meaningful relief to buyers in higher-priced markets.

A Quick Side-by-Side Summary

Final Thoughts

Tax exemptions and rebates in real estate are highly dependent on your specific situation — the property’s value, whether it’s new construction or resale, your residency history, and whether you’ve owned a home before. The good news is that between BC’s PTT exemptions and the new federal GST rebate, first-time buyers purchasing new construction in Vancouver could potentially save over $60,000 in taxes.

If you’re purchasing in Calgary or Edmonton, while PTT doesn’t apply, the new federal GST rebate is still very much on the table for eligible first-time buyers of new construction.

As always, I strongly recommend speaking with your mortgage broker and a qualified tax professional before making any decisions — rules can change, and your eligibility will depend on the details of your specific transaction.

If you have questions about how these exemptions might apply to your purchase, feel free to reach out. I’m licensed in both BC and Alberta and am happy to help you navigate the financial side of your home purchase.

This article is for informational purposes only and does not constitute tax or legal advice. Always consult with a qualified professional regarding your specific situation.

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