Ontario HST rebate on new homes: up to $130,000 (2026 guide)
Last updated September 30, 2026. These rules are new and still being finalized. Confirm the current status with your real estate lawyer before you sign.
In March 2026, Ontario announced a one-year expansion of its HST new housing rebate. For eligible buyers, it removes the full 13% HST on new homes priced up to $1 million, a rebate of up to $130,000. Unlike earlier programs, you don't have to be a first-time buyer.
How much you can get
| New home price | HST relief |
|---|---|
| Up to $1,000,000 | The full 13% HST (up to $130,000) |
| $1,000,001 to $1,500,000 | A flat $130,000 |
| $1,500,001 to $1,850,000 | Declines from $130,000 to $24,000 as the price rises |
| Over $1,850,000 | $24,000 (the existing Ontario rebate) |
Source: Government of Ontario announcement, March 25, 2026, and the 2026 Ontario Budget.
Who qualifies
- Timing: your agreement of purchase and sale with the builder must be signed between April 1, 2026 and March 31, 2027.
- Use: the home must be your primary residence, or a residential rental property.
- Home type: it must be a qualifying newly built (or substantially renovated) home. Resale homes don't qualify.
- Any buyer: first-time buyers and repeat buyers can both qualify.
Where the money comes from
The province is rebating the full 8% provincial portion of the HST. The federal government agreed to cover roughly the 5% federal portion, but that part depends on federal legislation. That's why it's worth asking your lawyer where things stand on the day you sign.
How you actually receive it
With new homes, the rebate is usually credited by the builder on your statement of adjustments at closing, rather than paid to you later. Most builder contracts say the price "includes HST, net of rebates," and you assign the rebate to the builder. That's why the wording in your contract matters so much. See who gets the rebate when the price includes HST.
How it fits with the first-time buyer rebate
First-time buyers have a separate federal and provincial rebate for agreements signed from March 2025 onward. You can't receive more than the HST you actually pay, so your lawyer will apply whichever combination gives you the most. Read the first-time buyer rebate guide.
Before you sign
- Ask the builder in writing how the enhanced rebate will be applied to your purchase price.
- Have a real estate lawyer review the HST clause before your 10-day condo cooling-off period ends, or before you firm up a freehold deal.
- Check the builder's warranty record. See the builder rankings.
Common questions
Do I have to be a first-time buyer to get the $130,000 HST rebate?
No. Ontario's expanded rebate for agreements signed between April 1, 2026 and March 31, 2027 is open to all eligible buyers of qualifying new homes, as long as the home is a primary residence or a residential rental.
Does the HST rebate apply to resale homes?
No. HST rebates apply to newly built or substantially renovated homes bought from a builder. Resale homes are not charged HST in the first place.
What if my new home costs more than $1 million?
Homes from $1 million to $1.5 million get a flat $130,000. Between $1.5 million and $1.85 million the rebate declines toward $24,000, and above $1.85 million it is $24,000.
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