First-time buyer GST/HST rebate on new homes in Ontario

Last updated September 30, 2026. Parts of this program depend on federal regulations. Confirm details with your lawyer.

First-time buyers who purchase a new home from a builder can have the GST, and in Ontario the provincial portion of the HST, rebated. Together that can remove the full 13% HST on homes up to $1 million.

The federal part: up to $50,000

The federal First-Time Home Buyers' GST rebate covers the 5% federal portion on new homes up to $1 million, a maximum of $50,000. The rebate phases out for homes between $1 million and $1.5 million. Ottawa has proposed that it apply to agreements signed from March 20, 2025 through the end of 2030.

The Ontario part: up to $80,000

Ontario has announced a matching rebate of the 8% provincial portion for first-time buyers of new homes up to $1 million, aligned to the same start date. The province has said federal regulations are still needed to bring it fully into force.

Who counts as a first-time buyer

Generally, you must be at least 18, buying the home as your primary residence, and you (and your spouse or common-law partner) can't have lived in a home you or they owned in the current year or the four years before. The exact test is set by the Canada Revenue Agency, so check it against your own situation.

2026: everyone can now get similar relief

For agreements signed between April 1, 2026 and March 31, 2027, Ontario's expanded HST rebate offers up to $130,000 to all eligible buyers, not just first-timers. First-time buyers signing outside that window still have this program.

Don't forget the land transfer tax refund

First-time buyers in Ontario can also get up to $4,000 back on provincial land transfer tax, and up to $4,475 on Toronto's municipal land transfer tax if buying in Toronto. See new home closing costs.

Common questions

How much is the first-time buyer GST rebate on a new home?

Up to $50,000, the full 5% GST, on new homes up to $1 million, phasing out between $1 million and $1.5 million.

Can I get both the first-time buyer rebate and the 2026 expanded rebate?

You can't receive more than the HST you pay. Your lawyer will apply the programs that give you the largest total rebate.

More buyer guides

• Ontario HST rebate on new homes: up to $130,000 (2026 guide)
• New home closing costs in Ontario: what to budget
• HST included in your builder contract: who gets the rebate?
• Tarion deposit protection: how much of your deposit is covered?
• Delayed closing in Ontario: what your builder owes you