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Permits & Regulations1 min readMar 21, 2026

GST and HST on Home Renovations in BC 2025

GST on Home Renovations in BC

British Columbia applies 5% GST (federal) on renovation services. BC re-joined the HST and then returned to a provincial sales tax (PST) structure. Understanding which taxes apply prevents budget surprises.

Tax on Renovation Services in BC

  • Labour: 5% GST applies to all renovation labour in BC
  • Materials (supply only): 5% GST + 7% PST = 12% combined on building materials
  • Contractor supply-and-install: Contractors typically charge 5% GST on their total invoice (supply + labour). PST on materials is usually embedded in the price

New Residential Rental Property Rebate

If you build or substantially renovate a property for rental use, you may qualify for the New Residential Rental Property (NRRP) GST/HST Rebate. Up to 36% of GST paid back for properties valued under $350,000 (reduced rebate for higher values). Apply within 2 years of property being first occupied as rental.

GST New Housing Rebate

Applies to new construction and substantial renovations (90%+ of interior). Rebate of up to $6,300 on qualifying new/substantially renovated homes under $450,000. Consult a tax accountant if your renovation qualifies as “substantial.”

→ See also: Vancouver Renovation Planning Guide

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Vancouver General Contractors has completed 500+ home renovations across Metro Vancouver since 2010. Our articles are written and reviewed by licensed contractors, project managers, and renovation specialists with hands-on field experience.

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