By Sean Phillips, REALTOR®, Coldwell Banker Executives Realty, Vernon BC. Updated October 2026.
Short answer: Most resale homes in BC sell without GST. The exemption covers used homes owned by individuals and lived in as homes, not just your principal residence. GST can apply when the property was new or substantially renovated by the seller, or when it was used mainly for business, such as nightly or hotel-style rentals, a commercial space or a business operation. When GST applies, it is 5% of the selling price, and on a resort condo or a mixed-use property that can be a five-figure surprise. This page explains when it applies, who pays, and how to protect yourself.
1. The general rule: used homes are exempt
Under federal GST rules, the sale of a used residential home by an individual is usually exempt. That includes:
- Your principal residence
- A cabin or ski condo you used personally
- A home you rented long-term to tenants who lived there (stays of 60 days or more)
"Used" means someone has lived in it before, and the seller isn't the builder.
2. When GST can apply to a home sale
- New or substantially renovated homes. If you built the home, or renovated it so that about 90% or more of the interior was replaced, you may be treated as a "builder" and the sale can be taxable.
- Short-term and hotel-style rentals. GST law treats a home rented in stays of less than 60 days like a hotel. If all or substantially all of a property's rentals are short stays, for example in a resort rental pool or on Airbnb, the sale doesn't qualify for the residential exemption and GST is due on the selling price. What counts is how the property is being used when it sells. In a 2025 Federal Court of Appeal case, a condo that switched from long-term tenants to short-term rentals the year before it sold was assessed $77,079 in GST/HST. This comes up often at SilverStar and Big White, where listings sometimes note "GST has not been paid" or "GST may apply".
- Commercial and mixed-use property. Storefronts, offices, shops and the commercial part of a mixed-use building are generally taxable. If part of a home was used mainly for a business, that part may be treated differently.
- GST registrants who claimed input tax credits on the property, and sellers who changed its use.
3. Who pays the GST: buyer or seller?
By law, GST on a taxable sale is charged to the buyer and collected by the seller (a buyer who is a GST registrant may self-assess instead). What really decides who bears the cost is the wording of the contract.
In BC, the standard Contract of Purchase and Sale (BCREA/CBABC form, Dec 2025 revision) says in Section 1: "Unless the buyer and seller agree otherwise in writing, the Purchase Price includes Goods and Services Tax (the 'GST'), if applicable, and the seller will separately disclose all applicable GST on or before the completion date on the seller's statement of adjustments." The information page attached to the contract adds that if GST applies, the buyer pays it by paying the full purchase price, and the seller remits the GST to the Canada Revenue Agency from that payment (unless the buyer is required to self-assess it). In practice, that means if GST turns out to be due, it comes out of the seller's proceeds, not on top of the buyer's price.
That makes sense. The seller is the one who knows how the property was used: whether it was rented nightly, run as a business, or renovated top to bottom. The seller also earned the income from that use. So the seller is in the best position to know whether GST applies and to plan for it.
4. How to protect yourself
If you're selling:
- Tell your REALTOR® exactly how the property has been used: nightly rentals, a rental pool, a home business, major renovations.
- Talk to an accountant before listing if there's any chance GST applies, so it's priced in and not a surprise at closing.
- If GST should be added on top of the price, the contract must say so clearly.
If you're buying:
- Ask whether GST applies, and get the seller's written statement on it.
- Resort and rental-pool condos need extra care: check the listing remarks and the strata or rental-pool documents.
- Your lawyer or notary will confirm the GST status before completion.
Quick FAQ
Is GST charged on my principal residence sale?
Almost never, for a used home you lived in.
I rented my condo on Airbnb. Does GST apply when I sell?
It can. If all or nearly all of its rentals are stays under 60 days when you sell, GST likely applies. Get advice before you list.
The listing says "GST has not been paid." What does that mean?
It usually means GST may apply to this sale. Ask the listing agent how the price and the contract handle it before you make an offer.
Is this the same as Property Transfer Tax?
No. Property Transfer Tax is a BC tax the buyer pays at registration. GST is a federal tax that applies only to certain sales.
This page is general information, not tax or legal advice. GST rules depend on the specific facts of each property and transaction. Always confirm your situation with a qualified accountant or lawyer. Sean Phillips is a REALTOR® with Coldwell Banker Executives Realty, Vernon BC.