Buying a newly built home in Ontario can come with significant HST relief, but the rules have changed in 2026. Understanding which rebates apply—and whether they’re already included in a builder’s price—can make a major difference to your closing costs.

HST Rebates Are Mainly for New Housing

A common misconception is that HST rebates apply to every home purchase. Typical resale homes are generally exempt from GST/HST, so these rebates primarily matter when purchasing a new or substantially renovated home, buying from a builder, or constructing your own qualifying home.

Ontario’s Enhanced New Housing Rebate

Ontario introduced temporary enhanced HST relief in 2026.

For eligible homes purchased from a builder, the Ontario Enhanced New Housing Rebate generally applies when the purchase agreement is entered into from April 1, 2026 through March 31, 2027.

The enhanced rebate can provide:

• 100% of Ontario’s 8% HST portion on qualifying homes valued up to $1 million
• Up to $80,000 for homes valued between $1 million and $1.5 million
• A gradually reduced rebate for homes between $1.5 million and $1.85 million

At $1.85 million and above, the existing Ontario new housing rebate may still provide up to $24,000 when eligibility requirements are satisfied.

Eligible recipients of the enhanced Ontario rebate may also qualify for the Ontario New Home Affordability Payment, which provides additional relief equivalent to as much as the 5% federal portion.

Additional Relief for First-Time Buyers

Qualifying first-time buyers can also benefit from the federal First-Time Home Buyers’ GST/HST Rebate.

It provides a full rebate of the 5% federal GST—or federal portion of HST—on eligible new homes valued up to $1 million, with a maximum federal rebate of $50,000.

For homes between $1 million and $1.5 million, the federal rebate is gradually reduced.

Ontario also now provides a first-time home buyers’ rebate of up to $80,000 of the provincial HST portion for eligible buyers.

Check What the Builder’s Price Includes

Some builders advertise prices that already assume applicable HST rebates will be credited to the purchaser.

Before signing an agreement, confirm whether the advertised price includes HST, which rebates have been assumed, whether you qualify for them, and whether the builder will credit the rebate at closing.

If a rebate has been built into the price and you later turn out to be ineligible, you could be responsible for the difference.

Primary Residence Requirements Matter

New housing rebates generally have specific occupancy and primary-residence requirements. A property purchased primarily as a rental investment may instead fall under separate rental-property rebate rules.

Eligibility can also differ for owner-built homes, substantial renovations, assignments, and properties involving multiple purchasers.

Ontario’s 2026 HST changes can significantly reduce the cost of eligible new housing. However, purchase dates, property value, occupancy plans, and buyer eligibility all affect the amount available.

Before relying on a rebate when calculating your budget, confirm your eligibility with the CRA and review the purchase agreement with a qualified tax or legal professional.