Understanding GST and QST When Buying a Property in Quebec
Planiprêt
Feb 16, 2026
What Every Buyer Absolutely Needs to Know
Buying a property is a major milestone, and it’s essential to understand the tax implications associated with your transaction. Among these are the sales taxes — GST (5%) and QST (9.975%) — which may apply depending on several factors: the condition of the property, the nature of the seller, and even your personal situation.
This guide outlines the key rules, exemptions, situations where you may qualify for a rebate, and how taxes apply when the seller is a corporation.
When Do You Have to Pay GST and QST?
Generally, resale homes (properties that have already been occupied) are exempt from sales taxes.
However, GST and QST do apply in the following situations: - Purchase of a Newly Built or Substantially Renovated Home (90% or more)
Taxes are charged when the property is considered new or substantially renovated. - Purchase of Land + a Newly Built Home from the Same Builder
Taxes apply when both are purchased under a single contract. - Construction or Self-Build
Taxes are payable on materials, services, and in some cases on the completed building. - Purchase of a Newly Built or Substantially Renovated Rental Property
New rental buildings or those with major renovations are also taxable.
If the Seller Is a Corporation, Are Taxes Applicable?
Yes — in the vast majority of cases.
When a corporation sells a taxable property, it is normally required to charge GST and QST, whether it is registered or not.
However, there are nuances:
- The Buyer Is Registered for GST/QST
In this case, the buyer becomes responsible for self?assessing and remitting the taxes, except when the purchaser is an individual buying a residential property. - Sale of a Commercial Property
A corporation selling a commercial building must charge taxes, unless the registered buyer assumes the responsibility of reporting the taxes. - Mixed?Use Property: Residential + Commercial
The residential portion may be exempt if it meets the usual criteria (previously occupied home).
The commercial portion, however, remains taxable.
if the seller is a business, you should assume the taxes apply unless a clear exemption exists.
Can You Get a GST/QST Rebate?
Yes — in several cases.
- Purchase of a Newly Built or Substantially Renovated Home
Buyers may receive a partial rebate if they are the first occupants, if the home is purchased from a builder, and if the price does not exceed:
GST: up to $450,000
QST: up to $300,000
The QST rebate can reach 50% for homes priced at $200,000 or less. - Self?Build or Contractor?Built Homes
Taxes paid on construction may be partially reimbursable. - Federal Rebate for First?Time Buyers of New Homes
The Government of Canada also offers a specific rebate for first?time buyers purchasing a new home.
You’re thinking about buying a property in the near future?
Contact your mortgage broker now to get answers to all your questions and ensure you’re fully prepared for your next real estate purchase.
Request for submission 