Repealing GST on Some New Homes Would Cost Up to $2 Billion Annually: Budget Office

Construction cranes are seen in Toronto on July 5, 2017. The Canadian Press/Frank Gunn

Repealing the Goods and Services Tax (GST) on certain new home purchases, a policy proposed by both the Liberals and the Conservatives, would cost $400 million to $2 billion annually, according to the Parliamentary Budget Office (PBO).

The Liberal Party has said it would get rid of the GST on new and “substantially renovated” homes costing under $1 million for first-time homebuyers, while the Conservative Party has proposed to get rid of the GST on new homes costing up to $1.3 million, up from the $1 million initially announced in October 2024.