Ontario HST Rebate on New Homes: What Buyers Need to Know

Ontario Premier Doug Ford announced a major change to the provincial housing market on March 25, 2026. The province plans to remove the 13 per cent Harmonized Sales Tax on new homes for one year.

The program runs from April 1, 2026 to March 31, 2027. This applies to purchase agreements signed during this period.

Who Qualifies

This is not just for first-time buyers. The expanded rebate includes first-time home buyers, repeat buyers purchasing a new home as their primary residence, and some investors who plan to rent out their units.

Previously, only first-time buyers qualified for the HST rebate on homes under $1 million.

How Much Buyers Can Save

The savings are substantial. Homes under $1 million receive the full 13 per cent HST rebate, up to $130,000. Homes between $1 million and $1.5 million receive the maximum $130,000 rebate. Homes between $1.5 million and $1.85 million receive a partial rebate, decreasing proportionally. Homes over $1.85 million receive $24,000 under existing rules.

The federal government has agreed to cover its 5 per cent portion through a partnership with Ontario, making this a full 13 per cent relief for eligible buyers.

Key Deadlines

Buyers need to pay attention to these dates. Purchase agreements must be signed between April 1, 2026 and March 31, 2027. Construction must begin on or before December 31, 2028. Completion for primary residence must be on or before December 31, 2031. Completion for rental properties must be on or before December 31, 2029.

The Economic Impact

The province estimates this measure will stimulate an additional 8,000 housing starts annually, support up to 21,000 jobs, boost Ontario GDP by $2.7 billion, and provide nearly $2.2 billion in total tax relief.

Ontario currently builds about 70,000 new homes per year, well below the 175,000 annually needed to reach the province goal of 1.5 million homes by 2031.

What the Industry Is Saying

The Building Industry and Land Development Association (BILD) called it a game changer. Scott Andison, CEO of the Ontario Home Builders Association, said this is the biggest announcement we have seen in home building in decades.

Ontario Liberal housing critic Adil Shamji called the one-year timeframe the bare minimum and too little, too late. He noted the province rejected this same proposal from the Liberals six months ago.

What This Means for Ontario Realtors

This announcement creates opportunities for Realtors working with first-time buyers looking to enter the market, repeat buyers who have been priced out of new construction, investors considering rental properties, and clients currently sitting on the sidelines.

Premier Ford told reporters: Please get everything together. You have one year. Talk to your bankers and start buying the homes.

About the Author

Paige Kirkdene is Editor in Chief at RealtyChatter.com. She breaks down the Canadian real estate market for buyers, sellers, and Realtors who want straight answers, not noise. Paige works directly with Gary McGowan, bringing his 20+ years of real estate and training expertise into every article.