Ontario HST Rebate on New Homes: Up to $130,000 (2026 Guide)
Quick answer: For agreements signed between April 1, 2026 and March 31, 2027, Ontario's temporary relief can remove the full 13% HST on an eligible new home valued up to $1 million, and caps it at $130,000 for homes up to $1.5 million. It has two parts: the Ontario Enhanced New Housing Rebate (up to $80,000, the 8% provincial portion, run by the CRA) and the Ontario New Home Affordability Payment (up to $50,000, the 5% federal portion, paid by Ontario). It is not limited to first-time buyers, but the home must be your or a relation's primary residence.
The two parts
1. Ontario Enhanced New Housing Rebate (provincial 8%)
Refunds up to 100% of the 8% provincial part of the HST, to a maximum of $80,000. The CRA administers it.
2. Ontario New Home Affordability Payment (federal 5%)
A payment from Ontario of up to $50,000, equal to up to 100% of the 5% federal part of the HST. You must qualify for the enhanced rebate first. It is reduced by any federal rebate you receive, and needs no separate application.
The federal First-Time Home Buyers' rebate
First-time buyers (18+, citizen or permanent resident, no owner-occupied home in the current or previous four years) can get up to $50,000 of GST back on new homes up to $1 million, phasing out at $1.5 million. In Ontario this mainly changes who pays the 5% relief, not the total.
Eligibility checklist
- You are an individual buying a new home from a builder.
- The home will be your or a relation's primary place of residence. Rentals fall under a separate rental rebate with different rules.
- The agreement of purchase and sale is signed on or after April 1, 2026 and on or before March 31, 2027.
- Construction begins on or before December 31, 2028 and is substantially completed on or before December 31, 2031.
- Agreements signed before April 1, 2026 and later amended or assigned do not qualify.
How the amount scales with price
| Home value | Maximum relief |
|---|---|
| Up to $1,000,000 | All 13% HST (8% provincial plus 5% federal portion) |
| $1,000,000 to $1,500,000 | Flat $130,000 |
| $1,500,000 to $1,850,000 | Reduced, phasing out |
| $1,850,000 and up | No enhanced relief |
$130,000 is a ceiling. Under $1 million, the relief equals the HST on that home.
Worked example: a Brooklin Towns 2.0 U-829
Illustration only, assuming a pre-tax price of $479,990. Ask the builder for the agreement's HST schedule.
- 13% HST on $479,990: about $62,399.
- Provincial 8% portion (Enhanced New Housing Rebate): about $38,399.
- Federal 5% portion (federal first-time rebate and/or Ontario affordability payment): about $24,000.
- Net cost to an eligible buyer: $479,990*.
- Cost to a buyer who does not qualify: about $542,389 including HST.
How the net-of-rebate prices on this site work
Asterisked prices on this site assume the buyer qualifies and the rebates are credited at closing. Builders can credit the relief at closing: the buyer assigns the rebates to the builder and signs Form GST190 with Schedule RC7190-ON, and the builder files them. Buyers can also pay the HST and apply to the CRA themselves.
If you do not qualify
If the home will not be your primary residence, or you sign outside the window, HST is payable at closing on top of the price shown. If a rebate was credited and you were not entitled to it, the CRA can require repayment. Confirm before you sign.
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This guide is general information, not tax or legal advice. Confirm your eligibility with your lawyer or accountant before signing.
Sources (checked October 30, 2026): CRA Notice 346, Ontario Enhanced New Housing Rebate; Ontario.ca, Ontario New Home Affordability Payment; CRA, First-time home buyers' GST/HST rebate; 2026 Ontario Budget, Annex.
Frequently asked questions
Is Ontario’s HST rebate on new homes only for first-time buyers?
No. Both parts are available to individuals buying a new home as their own or a relation’s primary residence, under an agreement signed between April 1, 2026 and March 31, 2027. The total cannot exceed the HST paid.
How is the up to $130,000 made up?
Up to $80,000 from the Ontario Enhanced New Housing Rebate (the 8% provincial part) and up to $50,000 for the 5% federal part, through the federal first-time buyer rebate where it applies and Ontario’s New Home Affordability Payment for the rest. The full $130,000 applies only to homes valued from $1 million to $1.5 million.
What is the deadline to qualify?
The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. Construction must begin by December 31, 2028 and be substantially completed by December 31, 2031.
Can investors get the enhanced HST rebate?
Not under the new housing rebate, which requires a primary residence. A separate rental property rebate has different rules.
How do I claim the rebate?
Usually the builder credits it at closing after you assign the rebates and sign Form GST190 with Schedule RC7190-ON. Otherwise, you pay the HST and apply to the CRA yourself.
Presented by UB Realty Inc., Brokerage. *Prices marked with an asterisk are net of the Ontario enhanced HST relief on new homes for eligible buyers (generally an individual buying the home as their own or a relation's primary residence, with an agreement signed between April 1, 2026 and March 31, 2027). If you do not qualify, or the program changes, HST is payable at closing in addition to the price shown. Phase 2 (Brooklin Towns 2.0) prices from Madison Group's October 20, 2026 price list. Phase 1 (Street Towns) prices from Madison Group's October 13, 2026 price list; Phase 1 incentives from the Phase 1 Client Incentive Program, July 2026. Occupancy dates are tentative. Drive times are approximate. Prices, incentives and availability can change without notice. Not tax or legal advice. E.&O.E.