Important: The provincial 8% HST rebate is confirmed in the 2026 Ontario Budget. The full 13% (including the federal 5%) requires federal legislation that Ottawa has agreed to in principle but has not yet passed. All estimates below assume the full 13%. Learn more
Save Up to $130,000 on Your New Home or Rental Property
Ontario is temporarily removing the full 13% HST (Harmonized Sales Tax) on qualifying newly built homes, condos, and rental properties. Your Agreement of Purchase and Sale (APS) must be signed between April 1, 2026 and March 31, 2027.
New to Canada? What is HST?
HST (Harmonized Sales Tax) is a 13% tax on most purchases in Ontario, including newly built homes. On a $700K condo, that means $91,000 in tax. HST is not the same as property tax (annual) or land transfer tax (one-time at closing). This rebate specifically removes the HST charged on new construction. Canadian citizens and permanent residents (PR holders) are both eligible.
Why This Matters
The largest single housing affordability measure in Ontario's recent history.
Up to $130K Savings
Full 13% HST removed on new builds under $1M. Capped at $130K up to $1.5M.
All Buyers Welcome
Not just first-time buyers. Move-up buyers, investors, and permanent residents all qualify.
Homes & Rentals
Primary residences and long-term rental properties both qualify under the enhanced NRRP.
All of Ontario
Toronto, Mississauga, Brampton, Vaughan, Oakville, Hamilton, Ottawa — every municipality.
How Much You Save by Price
Up to $1M
Full HST removed. Maximum benefit tier for condos and townhomes.
$1M – $1.5M
Rebate capped at maximum. Common for detached in Vaughan, Oakville, Brampton.
$1.5M – $1.85M
Slides down proportionally as price approaches $1.85M.
Over $1.85M
Falls back to pre-existing provincial rebate maximum.
Before vs. After This Rebate
What the same home costs with the old rebate versus the new 2026 program.
| Property | Price | Old Rebate | New Rebate | Extra Savings |
|---|---|---|---|---|
| 1-bed condo, Toronto | $700K | ~$24,000 | $91,000 | +$67,000 |
| Townhome, Brampton | $850K | ~$24,000 | $110,500 | +$86,500 |
| 2-bed condo, Mississauga | $1.0M | ~$24,000 | $130,000 | +$106,000 |
| Detached, Vaughan | $1.3M | ~$24,000 | $130,000 | +$106,000 |
| Luxury detached, Oakville | $1.7M | ~$24,000 | ~$69,500 | +$45,500 |
Savings Estimator
Calculate your HST savings on new homes in 2026.
Typical GTA Examples
Rental Property Rebate (NRRP)
The New Residential Rental Property Rebate (NRRP) has been enhanced with the same rebate tiers. If you're buying a new-build to rent out long-term, you qualify for up to $130,000 in HST savings.
Investor vs. Primary Residence
| Primary Residence | Rental (NRRP) | |
|---|---|---|
| Rebate Tiers | Same | Same |
| CRA Form | GST190 + RC7190-ON | GST524 |
| Completion By | Dec 31, 2031 | Dec 31, 2029 |
| Construction Start | Dec 31, 2028 | Dec 31, 2028 |
| Holding Requirement | Must be your home | Min. 12 months rental |
Corporate/partnership purchases: consult your accountant. Holding corps that rent may qualify under NRRP in certain structures. Assignment sales have separate HST implications.
Eligibility & Key Dates
You Qualify If
- checkBuying a newly built or substantially renovated home, condo, or co-op
- checkPurchasing directly from a builder (not resale)
- checkAPS signed April 1, 2026 – March 31, 2027
- checkUsing as primary residence or long-term rental
- checkCanadian citizen or permanent resident (PR holders fully eligible)
- checkAlready own a home? Move-up buyers qualify. Selling resale to buy new is fine.
You Don't Qualify If
- closeBuying a resale home (resale is HST-exempt)
- closeAPS signed before April 1, 2026 (not retroactive)
- closeUsing as a vacation home or secondary residence
- closeFlipping or purchasing through a flip corporation
- closeConstruction deadlines missed (CRA can claw back the full rebate)
APS Window
Apr 1, 2026 – Mar 31, 2027
Construction Start
By Dec 31, 2028
Complete (Residence)
By Dec 31, 2031
Complete (Rental)
By Dec 31, 2029
Already Signed Before April 2026?
We know this is frustrating. The enhanced rebate is not retroactive — only APS signed within the April 2026–March 2027 window qualify. But you still have options.
What you're still entitled to:
- checkProvincial rebate: up to $24,000
- checkFederal rebate: up to $6,300 (if under $450K)
- checkCombined maximum: ~$30,300
Options to explore:
- arrow_forwardAsk your builder about price adjustments or credits
- arrow_forwardExplore assignment + repurchase within the new window
- arrow_forwardConfirm you're claiming the full old rebate via your lawyer
- arrow_forwardContact your MPP about retroactivity advocacy
Frequently Asked Questions
Common questions about the Ontario HST rebate on new homes in 2026.
What is HST and how does it apply to new homes?
expand_moreHST (Harmonized Sales Tax) is a 13% tax charged on most goods and services in Ontario, including newly built homes. It is not the same as property tax (annual) or land transfer tax (one-time at closing). On a $700K new condo, HST adds $91,000 to the cost. This rebate removes that tax for qualifying purchases.
Do permanent residents (PR holders) qualify?
expand_moreYes. Canadian citizens and permanent residents are both fully eligible. There is no citizenship-only requirement. You (or a blood/adoption relation) must intend to use the home as a primary residence or long-term rental.
I signed my APS before April 2026. Can I get this rebate?
expand_moreNo. The enhanced rebate is not retroactive. Only APS signed between April 1, 2026 and March 31, 2027 qualify. If you signed earlier, you're eligible for the pre-existing rebates (up to ~$24K provincial + ~$6.3K federal). See your options.
Is the full 13% confirmed or just the provincial 8%?
expand_moreThe provincial 8% is confirmed in the 2026 Ontario Budget. The full 13% requires federal cost-sharing via Excise Tax Act changes, which Ottawa has agreed to in principle but hasn't legislated. If only the provincial portion passes, the rebate would be approximately 8% instead of 13%. We'll update this page as legislation is finalized.
Will builders raise prices to absorb the rebate?
expand_moreThis is a real concern. However, with pre-construction sales down 86-89% in Toronto/Hamilton versus 10-year averages, builders are under significant pressure to move inventory. Working with an experienced pre-construction advisor can help you negotiate effectively and identify builders offering genuine value.
What if construction is delayed past the deadline?
expand_moreMissing deadlines can disqualify the entire rebate. The Canada Revenue Agency (CRA) can audit and claw it back. "Substantially completed" means the home is habitable and ready for occupancy (not necessarily every cosmetic detail finished). Choosing a builder with a documented track record of on-time delivery is critical.
How is the rebate applied at closing?
expand_moreIn most GTA pre-construction purchases, builders include HST in the price and assign the rebate at closing. Your real estate lawyer handles the paperwork (CRA forms GST190 and RC7190-ON for primary residences, or GST524 for rental properties). The rebate is deducted from what you owe at closing — meaning you pay less out of pocket on closing day.
Can I combine this with other programs (FTHB, HBP, LTT rebate)?
expand_moreYes. The HST rebate is separate from and stackable with other programs. The First-Time Home Buyer Tax Credit provides a $1,500 non-refundable tax credit (based on a $10,000 amount at 15%). The Home Buyers' Plan lets you withdraw up to $60K from your RRSP (repayable over 15 years — this is a loan, not a grant). The Ontario land transfer tax rebate provides up to $4,000 for first-time buyers. Combined with the HST rebate, total benefits for a first-time buyer on a $700K condo: $91K (HST rebate) + $1,500 (FTHB credit) + $4,000 (LTT rebate) = approximately $96,500 in direct savings, plus access to $60K from your RRSP via HBP.
Get Expert Guidance
The rebate window is one year. Construction deadlines are strict. Timing your APS correctly is everything. Speak with a pre-construction specialist who understands the program inside and out.
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Sources & References
Ontario Ministry of Finance — March 25, 2026 Announcement
2026 Ontario Budget — Chapter 1B: Reducing Costs
Canada Revenue Agency — RC4028: GST/HST New Housing Rebate
CRA Forms: GST190 + RC7190-ON (primary residence) / GST524 (rental properties)