Ontario’s New HST Rebate for New Homes (2026): Who Qualifies, How Much, and the March 2027 Deadline
For years, the 13% HST was the line on a new-home price sheet that nobody could do anything about. In 2026 that changed. Ontario has introduced HST relief on new homes that is open to every buyer who will live in the home, not only first-time buyers, and it is worth up to $130,000 on a single home.
The catch is timing. The program only covers agreements signed inside a one-year window, and the clock runs out on March 31, 2027. If you are shopping pre-construction or move-in ready homes right now, this is the single biggest number in your budget.
What changed in 2026
Ontario announced the expanded relief on March 25, 2026, and the enabling legislation received Royal Assent on May 12, 2026. It sits on top of the first-time buyer rebates that started in 2025 and gives repeat buyers and move-up buyers access to similar savings for the first time.
The relief comes in two parts that work together:
- Ontario Enhanced New Housing Rebate (administered by the CRA): up to $80,000, covering the provincial 8% portion of the HST.
- Ontario New Home Affordability Payment (paid by Ontario): up to $50,000, covering the federal 5% portion. It is reduced by any federal first-time buyer or federal new housing rebate you also claim, so you cannot be paid twice for the same tax.
Together that is up to $130,000, which is the full 13% HST on a $1,000,000 home.
How much you get at each price point
The relief is tiered by the price of the home:
| Purchase price | Enhanced relief |
|---|---|
| Up to $1,000,000 | The full 13% HST (8% provincial + 5% federal portions) |
| $1,000,000 to $1,500,000 | A flat maximum: $80,000 + $50,000 = $130,000 |
| $1,500,000 to $1,850,000 | Partial relief that shrinks as the price rises |
| $1,850,000 and up | No enhanced relief; the regular Ontario new housing rebate (up to $24,000) still applies |
Example: a $900,000 new townhome
HST at 13% is $117,000. Because the price is under $1 million, the enhanced rebate and the affordability payment together cover the full $117,000.
Example: a $1,200,000 new detached home
HST at 13% is $156,000. Relief is capped at $130,000, so $26,000 of HST remains. That is still roughly $100,000 better than the old rules, where most buyers at this price received only the $24,000 Ontario rebate.
Who qualifies
Based on the CRA’s notice for the enhanced rebate, you need all of the following:
- An agreement of purchase and sale (APS) signed on or after April 1, 2026 and on or before March 31, 2027.
- Construction that starts by December 31, 2028.
- A home that is substantially complete by December 31, 2031.
- A price under $1.85 million.
- The home must be your (or a relative’s) primary place of residence. Investor purchases are not covered by this version of the program.
You do not have to be a first-time buyer. If you are one, also read the first-time buyer rebate entry in our glossary, because your best result depends on when you signed.
What can disqualify you
Signing before April 1, 2026
An agreement signed before the window opens does not qualify, even if the home closes in 2027 or later. Amending an old agreement does not move it into the window either.
Buying on assignment
Both the original agreement and the assignment must fall inside the April 2026 to March 2027 window. If the original buyer signed before April 1, 2026, an assignee cannot use the enhanced rebate. This is a big reason to check the original APS date before you buy any assignment.
Renting the home out
This rebate is for owner-occupiers. Ontario has signalled a separate version for rentals, but at the time of writing its final rules had not been confirmed, so do not budget on it.
How the rebate shows up on your closing
On most Ontario new homes, the builder’s price already assumes the regular rebates are assigned to the builder. With the enhanced relief, ask the builder in writing how it will be handled for your home: whether it will be credited on your statement of adjustments at closing, or whether you will apply for it yourself after closing. Your real estate lawyer should confirm this before you waive any conditions.
What this means if you are shopping now
Five months remain in the window. Builders know it, and many are pairing the HST relief with their own incentives. If you are planning a purchase in 2027, it may be worth moving that decision up. Compare this week’s builder incentives, browse move-in ready homes (which still count if your agreement is signed in the window), and get VIP access to new launches before public release.
Frequently asked questions
Do I have to be a first-time buyer to get Ontario’s 2026 HST rebate?
No. The Ontario Enhanced New Housing Rebate and the Ontario New Home Affordability Payment are open to any buyer who will live in the home as a primary residence, as long as the agreement is signed between April 1, 2026 and March 31, 2027 and the price is under $1.85 million.
What is the maximum HST rebate on a new home in Ontario in 2026?
Up to $130,000 per home: up to $80,000 for the provincial 8% portion and up to $50,000 for the federal 5% portion. Homes up to $1 million get the full 13% HST back.
Does the enhanced HST rebate apply to pre-construction condos?
Yes, if you sign within the window, the project starts construction by December 31, 2028, is substantially complete by December 31, 2031, and you live in the unit.
Can I get the enhanced rebate on an assignment?
Only if both the original agreement and the assignment were signed between April 1, 2026 and March 31, 2027. An assignment of a pre-April 2026 agreement does not qualify.
Does the rebate apply to investment properties?
Not this version. It requires the home to be a primary residence. A separate rental version was announced, but its final rules were not confirmed at the time of writing.
Sources
- CRA Notice 346: Ontario Enhanced New Housing Rebate
- Ontario: Ontario New Home Affordability Payment
- CRA: GST/HST New Housing Rebate (RC4028)
This article is general information, not legal, tax or financial advice. Rules and programs change; confirm the details for your purchase with a real estate lawyer, accountant or mortgage professional. NewBuild Connect is not a brokerage; you buy through one of our preferred realtors who specialize in new builds.