In March 2026, Ontario announced a temporary expansion of the HST rebate on new homes. This program aims to make homeownership more affordable and stimulate new housing construction.
What is the New Ontario HST Rebate?
The Ontario government, in partnership with the federal government, is temporarily removing a large portion (up to the full 13%) of the Harmonized Sales Tax (HST) on eligible new homes.
Key Savings:
Maximum Rebate: Up to $130,000 (full 13% HST relief)
For new homes valued up to $1 million
For homes between $1 million and $1.5 million: Still eligible for the full $130,000 rebate
For homes between $1.5 million and $1.85 million: Rebate gradually reduces
Homes above $1.85 million: Limited to the standard rebate (around $24,000 provincial portion)
This is a one-year temporary program running from April 1, 2026 to March 31, 2027.
Who Can Claim This Rebate?
Good news — unlike some previous programs, this expanded rebate is available to all buyers, not just first-time home buyers.
Eligibility Highlights:
The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027
The home must be a newly constructed or substantially renovated residential property
It must be used as your primary residence or for long-term residential rental
Applies to homes bought from a builder or owner-built homes (with specific construction timelines)
Federal vs Provincial HST Rebate – How It Works
Federal Portion (5%): Covered through the standard GST/HST New Housing Rebate + the new First-Time Home Buyer enhancements (if you qualify).
Provincial Portion (8%): Ontario is providing enhanced relief — this is where most of the big savings (up to $80,000+) come from in the new program.
Together, they can add up to the full 13% HST being rebated on qualifying homes up to $1 million.
Important Tips for Buyers
Act Quickly — This is a limited one-year window. If you're considering a new build, talk to builders about signing agreements in this period.
Work with a Knowledgeable Agent — A local real estate agent experienced with new construction can help you navigate the rebate process and negotiate with builders.
Check Exact Eligibility — Rules can be complex (especially for owner-builders or rental properties). Always verify with CRA and a tax professional.
Combine with Other Incentives — Look at other government programs, down payment assistance, or first-time buyer benefits where applicable.
How This Affects the GTA Market in 2026
This rebate could make new condos, townhouses, and detached homes in areas like Brampton, Milton, Oshawa, Whitby, Vaughan, and other GTA suburbs significantly more affordable. It may also encourage more builders to increase supply.
Final Thoughts
The 2026 Ontario HST Rebate is one of the most generous tax relief measures for new home buyers in recent years. Whether you're a first-time buyer, move-up buyer, or investor, it’s worth exploring if a new construction property fits your needs.
Buying a new home is a big decision. Having the right local real estate agent who understands the latest incentives can save you time, stress, and money.