What is the current GST rate that applies to new home purchases in Alberta?
Correct Answer
A) 5% GST only
Alberta is not part of the Harmonized Sales Tax system and has no provincial sales tax, so a new home purchase in Alberta attracts only the 5% federal GST. Rebates such as the GST New Housing Rebate or the First-Time Home Buyers' GST rebate may reduce the net tax, but the rate is 5%.
Why This Is the Correct Answer
Only the 5% federal GST applies to a new home in Alberta, because Alberta has no provincial sales tax and has not harmonized with the GST. Federal rebates can reduce the tax actually paid, but they do not change the rate.
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