8 April 2026
The Ontario government has announced a full HST rebate on new homes priced up to $1 million, which will be capped at $130,000.
Homes priced between $1 million and $1.85 million will receive either a flat or gradually reduced rebate.
First-time home buyers may also qualify for additional provincial and federal rebates retroactive to March 20, 2025.
On March 25, 2026, the Province of Ontario introduced an affordability measure: a full HST rebate for eligible purchasers of newly constructed homes valued at up to $1 million.
For higher-priced homes, the rebate is structured as follows:
Homes between $1 million and $1.5 million receive a flat $130,000 reduction. Homes between $1.5 million and $1.85 million receive a graduated reduction, decreasing from $130,000 to the current $24,000 level. Homes above $1.85 million continue to qualify for the existing $24,000 provincial rebate.
| Home price range | HST reduction amount |
| Up to $1,000,000 | Full 13% |
| $1,000,001–$1,500,000 | $130,000 |
| $1,500,001–$1,850,000 | Declining reduction: $130,000 → $24,000 |
| Over $1,850,000 | $24,000 |
Legislative Considerations
Because the HST framework is governed by the federal Excise Tax Act, implementing this rebate requires federal cooperation. Notably, the announcement was made by Ontario without a simultaneous federal release.
While the federal government has indicated a willingness to participate potentially covering the 5% federal portion, formal confirmation and legislative amendments are still pending. It also remains uncertain whether similar measures will apply in other provinces.
Eligibility Requirements
To qualify, the property must be a “qualifying new home”, falling into one of two categories:
1. Primary Residence
- Purchase agreement signed between April 1, 2026, and March 31, 2027
- Construction begins on or before December 31, 2028
- Substantial completion by December 31, 2031
2. Purpose-Built Rental Property
- Construction begins before March 31, 2026
- Purchase agreement signed between April 1, 2026, and March 31, 2027
- Substantial completion by December 31, 2029
First-Time Home Buyer Rebate
Separate from the above program, Ontario has also introduced a provincial HST rebate for first-time home buyers, aligned with the federal program.
- Applies to agreements signed between March 20, 2025, and December 31, 2030
- Both provincial and federal rebates may be available concurrently
Considerations
Buyers should be aware that:
- The primary rebate program has a narrow purchase window (April 1, 2026 – March 31, 2027)
- Strict construction timelines apply depending on property type
- The program remains subject to federal legislative changes. It’s “coming soon”!
Given the complexity and evolving nature of the rules, purchasers are strongly advised to seek guidance from legal and tax professionals to confirm eligibility and ensure compliance.
Brian Madigan LL.B., Broker