Loading...
Ontario HST Rebate: The One-Year Window That Could Save You Thousands
The Ontario HST rebate is an announced, time-limited change aimed at lowering the tax cost of qualifying new homes. It is tied to a one-year agreement window. It could remove the full 13% HST on eligible new homes up to $1 million. That can mean savings up to $130,000.
This proposal Ontario HST rebate is described as temporary. The key window is agreements signed from April 1, 2026 to March 31, 2027. The program details are also described as subject to federal steps, and the HST system is administered by the Canada Revenue Agency
If you are considering a new build or pre-construction, your timing matters. Your contract date matters even more. This guide breaks down what is known today, how the savings tiers work, and what to ask before you sign.
What Is the Ontario HST rebate and Why It Matters
In late-March 2026 announcements, the Government of Ontario said it is taking steps to temporarily provide relief on the full 13% HST for qualifying new homes valued up to $1 million. That is described as a maximum relief amount of up to $130,000.
A March 30, 2026 federal release says the full 13% HST would be removed on new homes in Ontario valued up to $1 million. It also outlines the higher-price tiers: the $130,000 maximum would be maintained up to $1.5 million, then reduced proportionally until it reaches $24,000 at $1.85 million and above.
This matters because it is not only a buyer headline. It is also a supply headline. The same federal release cites Ontario’s estimates of nearly $2.2 billion in tax relief, plus an estimated 8,000 additional housing starts next year, up to 21,000 jobs, and a $2.7 billion GDP contribution. These are forecasts, not guarantees, but they show the scale of the policy intent.
Ontario’s 2026 budget highlights add an important detail for buyers: the federal government “has agreed to cost-share,” but Ontario also notes this is subject to passage of federal legislation. That is a practical reason to treat this as “announced and being implemented,” not as a final tax opinion for your specific contract.
How much could you save with the Ontario HST rebate
The savings depend on the home value and the tier it falls into. The official description is tiered. Up to $1 million, it is described as removing the full 13% HST (up to $130,000). From $1 million to $1.5 million, it is described as maintaining the $130,000 maximum. Above $1.5 million, it is described as tapering down to $24,000 at $1.85 million and above.
Savings examples by price tier
The table below shows illustrative maximum relief based on the published tiers. For homes in the “taper” range ($1.5M to $1.85M), the “estimated” figures assume a straight-line reduction as described (“decrease proportionally”). Always confirm the final calculation for your exact situation.
Two quick notes help set expectations.
First, the Ontario budget text also explains the provincial mechanics. Ontario proposes to enhance its existing rebates for one year by removing the full 8% provincial portion (up to $80,000), and it describes a federal partnership that “could provide up to $130,000” in combined relief for eligible new homes valued at $1M and up to $1.5M.
Second, the existing CRA guidance says Ontario’s “Ontario new housing rebate” has long had a maximum of $24,000, even when the federal new housing rebate may phase out due to value thresholds. The new one-year plan is described as expanding beyond that in many cases, but the $24,000 number still matters as the described “floor” at the high end.
Key dates and a simple timeline
This is the part many buyers miss. The one-year measure is about when you sign, not only when you get the keys.
Ontario’s budget backgrounder says that for a new home purchased from a builder for use as a primary place of residence, enhanced relief would generally be available if the agreement is signed between April 1, 2026 and March 31, 2027, construction begins on or before December 31, 2028, and the home is substantially completed on or before December 31, 2031.
The backgrounder also outlines different timelines for owner-built homes and long-term residential rental properties, with a substantial completion deadline of December 31, 2029 in the owner-built example, and a similar 2029 completion deadline shown in the rental-property scenarios.
If you are shopping pre-construction, this timeline should shape your strategy. It can affect which projects make sense, and which ones carry timing risk.
What to ask before you sign
The announced policy direction is big. The details in your agreement are still bigger.
Ontario’s eligibility backgrounder says the enhanced relief is intended to generally apply to the same types of housing and follow the same eligibility conditions as Ontario’s existing rebate programs, but it is also described as subject to federal regulatory amendments. It also states the HST and associated relief are administered federally by the Canada Revenue Agency.
That means you should treat your agreement like a “tax document,” not just a price sheet.
Here are practical questions that keep deals clean:
How is HST shown in the price?
Ask the builder whether the purchase price is stated as “HST included,” and what assumptions are baked in. Then ask how the one-year Ontario HST rebate window will be reflected on the statement of adjustments.
Who files what?
CRA guidance on the GST/HST new housing rebate explains that buyers generally use Form GST190 (and the Ontario schedule RC7190-ON for the provincial portion). CRA forms and guidance also show that, in many cases, the buyer completes and signs the forms and provides them to the builder, who sends the application to CRA when the builder is crediting the rebate.
Is it even a new-build situation?
Do not assume every home purchase has HST. CRA guidance notes that many sales of used owner-occupied homes by individuals are exempt, with important exceptions in “builder” or change-in-use scenarios. This blog topic is mainly about new builds and substantially renovated “new housing” situations.
Are there other rebates that could apply?
For first-time buyers, CRA now has a First-time Home Buyers’ GST/HST rebate that can recover up to 100% of the GST (federal portion) up to $50,000 on homes at or below $1 million, with a reduced benefit up to $1.5 million. It is separate from the Ontario one-year measure, but it can matter for qualifying buyers and timelines.
If you want a broader checklist of Canadian homebuyer incentives, Canada Mortgage and Housing Corporation maintains a consumer-facing overview that links out to programs like the GST/HST New Housing Rebate, the FHSA, and other first-time buyer supports.
FAQ – Ontario HST Rebate
Is the Ontario HST rebate for resale homes too?
Most resale homes are generally GST/HST-exempt, so this one-year measure is not usually the “main event” for resale purchases. The big impact is on qualifying new houses, condos, and substantial renovations where HST applies.
Do you have to be a first-time buyer?
No. Ontario’s 2026 budget highlights describe the removal of the full 13% HST for “all eligible buyers” of new homes valued up to $1 million, within the announced structure.
What property types are included?
Ontario’s eligibility backgrounder says eligible homes would generally include detached or semi-detached houses, condominium units, townhouses, or rowhouses bought or built for use as a primary place of residence, with parallel guidance for long-term residential rental scenarios.
Can investors get it for long-term rentals?
Ontario’s backgrounder says enhanced relief may apply to long-term residential rental properties (generally where the unit is rented for long-term residential use as a tenant’s primary residence), with specific timing conditions. Confirm the details with your lawyer and tax advisor.
What if my project finishes late?
The Ontario backgrounder describes outside deadlines for “construction begins” and “substantial completion” in different scenarios. If a build misses the relevant deadline, you may not meet the conditions as described. That is why the timeline should be part of your project selection.
Contact Us:
The Ontario HST rebate is simple to headline. It is not always simple to execute.
If you are buying a new build or pre-construction in Ontario, contact our team today for a New-Home Tax Savings Consult. We will help you:
- Review your builder’s agreement date against the one-year window.
- Estimate your potential savings using the published tiers.
- Build a clean question list for your builder, lawyer, and accountant.
- Compare a new build versus resale with a clear view of where HST commonly applies (and where it often does not).
Book a call, send us the project name and price range, and we will map out your next steps.
