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Ontario HST Rebate on New Homes 2026: Save Up to $130,000 Starting April 1

Condo123 · March 31, 2026

Ontario HST Rebate on New Homes 2026: Save Up to $130,000 Starting April 1

Ontario just made buying a new home significantly more affordable. On March 25, 2026, Premier Doug Ford announced one of the most impactful housing tax relief measures in the province's history: a dramatic expansion of the HST rebate on new homes, effective April 1, 2026. For a limited one-year window, the full 13% HST is removed on new homes priced up to $1 million — and a substantial rebate is maintained on homes up to $1.85 million.

If you are purchasing a new construction home, a pre-construction condo, or a substantially renovated property, this policy change could mean tens of thousands of dollars back in your pocket. In this guide, we break down exactly how the new rebate works, who qualifies, how it stacks with the new federal first-time home buyer GST rebate, and why the next twelve months represent a genuinely rare opportunity for Ontario buyers.

Explore available new construction listings across Ontario and see which projects qualify under this expanded rebate.

What Is the HST Rebate on New Homes — and What Changed?

When you purchase a newly constructed or substantially renovated home in Ontario, you pay 13% HST — a combination of the 5% federal GST and Ontario's 8% provincial component. On a $900,000 condo, that is $117,000 in tax before any rebate. Historically, the Ontario government offered a partial rebate that maxed out at just $24,000, regardless of the home's purchase price.

That cap was set decades ago and had not kept pace with the dramatic rise in Ontario real estate values. The result: buyers of new homes were effectively paying a full tax penalty that made new construction increasingly unattractive relative to the resale market — contributing to a housing supply shortage and discouraging builders from launching new projects.

The April 1, 2026 expansion changes that calculus entirely.

The New Rebate Structure at a Glance

Homes up to $1,000,000: Full 13% HST removed — maximum saving of $130,000
Homes $1,000,001 to $1,500,000: Full $130,000 rebate maintained (flat amount)
Homes $1,500,001 to $1,850,000: Sliding scale — rebate tapers from $130,000 down to $24,000
Homes above $1,850,000: Standard $24,000 rebate only (unchanged from previous policy)

This window is temporary. It applies to qualifying purchases closing between April 1, 2026 and March 31, 2027. After that date, the rebate is expected to revert to the previous structure unless the provincial government takes further action.

Old Rebate vs New Rebate: Side-by-Side Comparison

To appreciate the scale of this change, consider what buyers at various price points were previously receiving — and what they stand to gain under the expanded programme.

Purchase Price	HST Payable (13%)	Old Rebate (max $24,000)	New Rebate (from Apr 1, 2026)	Additional Saving
$500,000	$65,000	$24,000	$65,000 (full HST)	$41,000
$700,000	$91,000	$24,000	$91,000 (full HST)	$67,000
$1,000,000	$130,000	$24,000	$130,000 (full HST)	$106,000
$1,200,000	$156,000	$24,000	$130,000 (flat cap)	$106,000
$1,500,000	$195,000	$24,000	$130,000 (flat cap)	$106,000
$1,700,000	$221,000	$24,000	~$77,000 (sliding scale)	~$53,000

Note: HST amounts represent gross tax before any rebate. The "New Rebate" column reflects the rebate amount applied against that gross tax. For homes in the $1.5M–$1.85M sliding scale range, the precise rebate amount depends on the exact purchase price. Consult a qualified real estate lawyer or tax professional to confirm figures for your specific transaction.

The Ontario government estimates this programme will deliver $2.2 billion in total relief to buyers, stimulate the construction of approximately 8,000 additional homes, and support roughly 21,000 jobs in the building sector.

Who Qualifies? Open to All Buyers — Not Just First-Timers

One of the most significant aspects of the Ontario expansion is its broad eligibility. Unlike many housing incentive programmes that restrict benefits to first-time buyers, this rebate is open to all purchasers of qualifying new homes — including:

First-time home buyers
Repeat purchasers moving to a new home
Real estate investors purchasing rental properties
Buyers purchasing a new home as a principal residence or secondary property
Corporations and numbered companies (subject to specific conditions)

The property itself must qualify — not the buyer's prior ownership history. This makes the rebate particularly powerful for the investment community, where HST has traditionally been a significant barrier to purchasing new construction for rental purposes.

Qualifying Property Types

The expanded rebate applies to:

New construction homes — detached, semi-detached, townhomes, and condominiums built by a developer or builder
Pre-construction condominiums — provided the closing (occupancy or final closing) falls within the April 1, 2026 to March 31, 2027 window
Substantially renovated homes — where renovations are so extensive that the home is effectively treated as newly constructed under CRA guidelines
Owner-built homes — where the owner acts as their own general contractor and the home meets the "first use" test

Resale homes do not attract HST and are therefore unaffected by this policy change. The rebate applies exclusively to properties where HST is charged at closing.

How This Affects Pre-Construction Condo Buyers in Ontario

Pre-construction condo buyers in Toronto, Mississauga, and across the Greater Toronto Area have a unique relationship with this rebate — and the timing complexities deserve careful attention.

The Closing Window Is What Matters

In pre-construction real estate, HST becomes payable at the time of the final closing, not when you signed your purchase agreement. This means that even if you signed your Agreement of Purchase and Sale (APS) in 2022 or 2023, you may still qualify for the expanded rebate if your final closing occurs between April 1, 2026 and March 31, 2027.

Many Toronto-area condo towers that were delayed during the post-pandemic construction slowdown are now approaching their final closing dates. Buyers in those projects should review their estimated occupancy and final closing schedules with their lawyers immediately, as the timing could mean the difference between the old $24,000 cap and up to $130,000 in HST relief.

Interim Occupancy vs Final Closing

In a pre-construction condo transaction, there are two key dates:

Interim Occupancy (Occupancy Date): You move in and begin paying occupancy fees to the builder, but legal title has not yet transferred.
Final Closing (Registration Date): Legal title transfers, your mortgage funds, and HST (net of rebate) is settled.

The expanded HST rebate applies at the point HST is assessed — which is the final closing. Confirm this date with your builder and solicitor if your project is approaching closing in the coming months.

Builder Purchase Prices Already Include HST

Many buyers are surprised to learn that the purchase price shown in their original APS with a builder typically already includes HST, with the rebate assigned back to the builder. Under this arrangement, the builder retains the rebate directly and sets the net purchase price accordingly.

With the expansion of the rebate, some builders may reprice upcoming units to reflect the larger rebate — while buyers who signed earlier agreements at prices that pre-dated the expansion may need to negotiate with their builder or consult legal counsel to understand the implications for their specific contract.

Browse Toronto pre-construction condos and Mississauga pre-construction homes closing within the qualifying window.

The Federal First-Time Home Buyer GST Rebate: Bill C-4

While Ontario expanded its provincial rebate, the federal government also moved — and first-time buyers stand to benefit from both simultaneously.

On March 12, 2026, the federal government received Royal Assent for Bill C-4, which introduces a separate First-Time Home Buyer GST Rebate of up to $50,000. Here is how the federal programme works:

Maximum rebate: $50,000 (represents a full rebate of the 5% federal GST component on homes up to $1,000,000)
Eligibility: First-time home buyers only — at least one purchaser must not have owned a principal residence in the previous four years
Phase-out range: The rebate phases out linearly between $1,000,000 and $1,500,000
Above $1,500,000: No federal FTHB GST rebate is available
Property types: New construction homes, substantially renovated homes, and shares in a co-operative housing corporation

This federal rebate operates independently from the Ontario provincial expansion — the two programmes address different tax components (federal GST vs. provincial HST) and have different eligibility thresholds.

Stacking Both Rebates: First-Time Buyer in Ontario

If you are a first-time home buyer purchasing a new construction home in Ontario, you may be eligible to stack both the Ontario provincial expansion and the federal Bill C-4 FTHB GST rebate. The combined saving is substantial.

Stacking Example: $750,000 New Condo in Toronto

Tax Component	Gross Tax	Rebate	Net Tax Payable
Federal GST (5%)	$37,500	$37,500 (Bill C-4 FTHB — full rebate)	$0
Ontario PST component (8%)	$60,000	$60,000 (Ontario expansion — full rebate)	$0
Total HST (13%)	$97,500	$97,500	$0

A first-time buyer purchasing a $750,000 new condo in Toronto during the qualifying window could potentially face zero net HST — a saving of $97,500 compared to the pre-2026 rebate regime.

Stacking Example: $1,000,000 New Home — First-Time Buyer

Tax Component	Gross Tax	Rebate	Net Tax Payable
Federal GST (5%)	$50,000	$50,000 (Bill C-4 FTHB — maximum rebate)	$0
Ontario PST component (8%)	$80,000	$80,000 (Ontario expansion — full rebate)	$0
Total HST (13%)	$130,000	$130,000	$0

At the $1,000,000 price point, a first-time buyer could claim the full $130,000 in HST relief — $50,000 from the federal FTHB rebate and $80,000 from the Ontario provincial expansion.

Important Caveat on Stacking

The exact mechanics of how the two rebates are applied, assigned, and claimed simultaneously — particularly when the builder holds an assignment of the rebate — involve nuanced tax law. You should work with a real estate lawyer and a tax accountant familiar with new construction transactions to confirm you are structured correctly and that the full combined benefit flows to you as the purchaser.

For a deeper dive into the full cost picture, read our Toronto closing costs breakdown for 2026.

How to Claim the HST Rebate: A Practical Guide

In most new construction transactions, the HST rebate process is largely handled for you — but it is important to understand how it works so you are not leaving money on the table.

Builder-Assigned Rebate (Most Common for New Condos)

When you purchase a new home from a builder, the purchase agreement typically includes a clause assigning your HST rebate to the builder in exchange for a lower purchase price. In this arrangement:

The builder claims the rebate directly from the Canada Revenue Agency (CRA)
You pay the "net of rebate" purchase price at closing
The builder is responsible for filing the rebate application with CRA

With the expanded rebate, the assigned amount is significantly larger. Ensure your purchase agreement explicitly reflects the updated rebate amount. If you signed your APS prior to the April 1, 2026 expansion, have your lawyer review whether your agreement captures the expanded rebate or only the previous $24,000 cap.

Buyer-Claimed Rebate (Less Common)

If you are purchasing a new home that you intend to use as a principal residence and the builder does not assign the rebate, you may claim it directly from CRA after closing. The process involves:

Filing CRA Form GST190 (GST/HST New Housing Rebate Application) within two years of closing
Providing evidence of the purchase price, HST paid, and intended use of the property
For the Ontario component, a separate Ontario Rebate Schedule may also be required

CRA processing times can vary. For substantial rebates, engaging a tax professional to handle the application is strongly recommended.

Rental Properties and the New Residential Rental Property Rebate

Investors purchasing new construction for rental purposes are also eligible for the expanded rebate, but claim it through the GST/HST New Residential Rental Property (NRRP) Rebate rather than the standard New Housing Rebate. The same expanded thresholds apply. The property must be intended for long-term residential rental use — short-term rental platforms may disqualify the property.

Timing Considerations

With a one-year window, timing is everything. Consider the following:

Final closings scheduled for April 2026 through March 2027: You are in the window — confirm the rebate is reflected in your closing documents.
Occupancy in 2026, final closing in 2027: Verify the final registration date — if it slips past March 31, 2027, you may lose access to the expanded rebate.
Purchasing now for a future closing: Projects with anticipated closings beyond March 2027 carry some risk of missing the window unless extended by the government.

Also review our guide on Ontario Land Transfer Tax in 2026 to understand the full tax picture alongside HST.

The Urgency Is Real: Why You Should Act Within This Window

Temporary government incentives have a history of disappearing — and sometimes not returning. The April 1, 2026 to March 31, 2027 window is a policy choice that can be reversed, extended, or replaced with something less generous. Here is why acting within this window matters:

1. The Saving Is Transformational

For the average Toronto condo buyer purchasing a $750,000 unit, the difference between the old regime and the new regime is approximately $73,500. That is not a marginal improvement — it is a sum that could cover a year's worth of mortgage payments, fund a significant renovation, or serve as an emergency reserve. For a $1,000,000 purchase, the incremental saving exceeds $106,000.

2. Builder Pricing May Adjust Once the Window Closes

Builders and developers are acutely aware of the HST rebate dynamics. During the window, the expanded rebate effectively reduces the real cost of new construction significantly. Once the window closes (absent an extension), the effective cost of new homes rises again — and buyer demand may soften in response. Acting now locks in the benefit.

3. Inventory Is Available Now

A combination of post-pandemic construction delays, rising cancellation rates in 2024–2025, and slower absorption has left a relatively healthy inventory of pre-construction and near-completion units available across the GTA. Buyers entering the market now have more negotiating leverage and selection than at any point in the previous five years.

4. Federal and Provincial Incentives Are Aligning

The simultaneous arrival of the Ontario expansion and the federal Bill C-4 FTHB rebate is historically unusual. Both levels of government have rarely offered this degree of tax relief at the same time. First-time buyers who can complete their purchase within this window are in an exceptionally advantageous position.

If you are ready to start your search, explore all available new construction properties on Condo123, or read our complete first-time home buyer guide for Toronto in 2026.

Summary: What the Ontario HST Rebate Expansion Means for You

Whether you are a first-time buyer, a repeat purchaser, or an investor, the April 1, 2026 HST rebate expansion is a material change to the economics of buying new in Ontario. Here is a quick summary of the key points:

The full 13% HST is effectively removed on new homes priced up to $1,000,000, saving up to $130,000
The full $130,000 saving is maintained on homes between $1,000,000 and $1,500,000
A sliding scale applies between $1,500,000 and $1,850,000, tapering to the standard $24,000
All buyers qualify — first-time, repeat, and investors alike
First-time buyers may also stack the federal Bill C-4 FTHB GST rebate of up to $50,000
The window runs from April 1, 2026 to March 31, 2027 only
Pre-construction condo buyers should confirm their final closing date falls within the window
Ontario estimates $2.2B in total relief, 8,000 new homes, and 21,000 jobs as a result of this programme

Frequently Asked Questions

Does the Ontario HST rebate expansion apply to resale homes?

No. The HST rebate applies only to newly constructed homes, pre-construction condos, and substantially renovated properties where HST is charged as part of the sale. Resale homes are generally exempt from HST, so neither the old nor the new rebate structure applies to them. If you are considering whether to buy new or resale, our closing costs breakdown compares the full cost picture for both.

I signed a pre-construction purchase agreement in 2023. Do I qualify for the expanded rebate?

It depends on your closing date, not your signing date. HST on a pre-construction condo becomes payable at final closing (registration), not when you signed your Agreement of Purchase and Sale. If your final closing occurs between April 1, 2026 and March 31, 2027, you are in the qualifying window. However, the terms of your specific purchase agreement — particularly any rebate assignment clause — may affect how the expanded benefit flows to you. Review your contract with a real estate solicitor as soon as possible.

Can investors claim the Ontario HST rebate on a rental property?

Yes. The Ontario expansion does not restrict eligibility to owner-occupants. Investors purchasing new homes for long-term residential rental purposes can claim the expanded rebate through the GST/HST New Residential Rental Property (NRRP) Rebate. The same price thresholds apply. The property must be intended for long-term residential rental — properties used for short-term rentals (such as Airbnb) do not qualify.

What is the difference between the Ontario HST rebate expansion and the federal Bill C-4 FTHB rebate?

They are two separate programmes targeting different components of the 13% HST. The Ontario expansion covers both the provincial (8%) and federal (5%) components and is available to all buyers. The federal Bill C-4 First-Time Home Buyer GST Rebate targets only the 5% federal GST component and is restricted to first-time buyers. A first-time buyer in Ontario may be eligible to claim both, potentially eliminating the full HST liability on a qualifying purchase.

Is the expanded rebate permanent, or will it expire?

The current expansion is temporary, covering closings from April 1, 2026 through March 31, 2027 — a one-year window. After that date, the rebate is expected to revert to the previous structure (maximum $24,000) unless the provincial government announces an extension or permanent reform. Given the stakes, buyers who are in a position to close within the window should do so rather than waiting.

How does the sliding scale work for homes between $1.5M and $1.85M?

For homes priced between $1,500,000 and $1,850,000, the rebate tapers linearly from the maximum of $130,000 (at $1,500,000) down to the standard $24,000 (at $1,850,000). The formula reduces the rebate proportionally across that $350,000 price band. At $1,675,000 (the midpoint), the rebate would be approximately $77,000. For a precise calculation for your specific purchase price, consult a tax professional or real estate lawyer.

Does the HST rebate reduce my mortgage amount?

In most builder transactions, the rebate is assigned to the builder and is factored into the net purchase price — meaning the mortgage is based on the price after the rebate is applied. In situations where you claim the rebate directly from CRA after closing, you would initially finance the gross HST amount and receive the rebate as a cash refund after the fact. How your specific transaction is structured will affect your mortgage amount. Discuss this with your mortgage broker and real estate lawyer early in the process.

Ready to explore new construction homes closing within the HST rebate window? Browse Toronto pre-construction condos, Mississauga new homes, and all Ontario new construction listings on Condo123. Our team can help you identify projects with qualifying closing dates and connect you with legal and financial professionals who specialise in new construction transactions.

Disclaimer: This article is provided for informational purposes only and does not constitute legal or tax advice. Tax rules can change and individual circumstances vary. Always consult a qualified real estate lawyer and tax professional before making purchasing decisions.