Ontario expands HST rebate to all new home buyers

Key Takeaways:

• Starting April 1, 2026, the province will temporarily expand the HST rebate to all eligible buyers of new homes rather than only first-time owners
• Qualifying purchasers can receive a maximum rebate of $130,000 for new homes valued up to $1.5 million, with a reduced rebate available for properties priced up to $1.85 million
• The federal government has agreed to cost-share the relief, a joint effort estimated to stimulate 8,000 new housing starts and support 21,000 jobs

The Whole Story:

Ontario is expanding its Harmonized Sales Tax rebate for new home buyers, removing the full 13% HST for eligible purchasers of new homes valued up to $1 million for a maximum rebate of $130,000, with a scaled rebate extending to homes valued at $1.85 million, the province said in a news release ahead of the 2026 Budget.

The expanded rebate, effective April 1, 2026, to March 31, 2027, maintains the $130,000 maximum for homes valued up to $1.5 million and decreases proportionally to a minimum of $24,000 for homes valued at $1.85 million and above. The federal government has agreed to cost-share the federal 5% portion of the HST removal, providing approximately $2.2 billion in total joint tax relief for housing in Ontario.

The measure builds on a previous provincial HST rebate for first-time buyers of new homes up to $1 million announced last October. Ontario is aligning the effective date of its first-time home buyer rebate with the federal government’s newly proposed date of March 20, 2025.

“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” Premier Doug Ford said in the release. “Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.”

The province estimates the expanded rebate could stimulate an additional 8,000 housing starts in Ontario next year, supporting up to 21,000 jobs and boosting gross domestic product growth by $2.7 billion.

Eligibility requirements remain unchanged: purchasers must be acquiring the new home for use as their primary residence or as a residential rental property. The agreement of purchase and sale must be entered into on or after March 20, 2025, and on or before December 31, 2030.

Ontario is also expanding HST relief for purpose-built rental housing, removing the full 8% provincial portion of the HST on qualifying projects. The province is providing $4 billion through the Municipal Housing Infrastructure Program and $1.2 billion through the Building Faster Fund, which rewards municipalities that accelerate housing construction.

Finance Minister Peter Bethlenfalvy said the enhancement supports home affordability during a period of economic uncertainty. “With this enhancement and expansion of the HST rebates, we are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives,” he said.

Further details on the expanded HST rebates will be available following the release of the 2026 Budget on March 26, 2026.