If you sign an agreement to buy a new home in Ontario between April 1, 2026 and March 31, 2027, the full 13% HST can come off the price, up to $130,000. That is the single biggest change to the cost of buying new in a generation, it applies to every buyer rather than only first-timers, and it has a hard end date. Here is how the relief works, how much it is worth at different price points, who qualifies, and the timing traps to check before you sign.
Use our HST rebate calculator — enter a price, your plans and occupancy date and see the relief, the timing fit and the first-time buyer alternative in seconds.
The short version
- Who: any buyer of a new home from a builder in Ontario, for a primary residence (yours or a close relative’s) or a qualifying long-term rental. You do not need to be a first-time buyer.
- When: purchase agreements signed from April 1, 2026 to March 31, 2027.
- How much: the full 13% HST on homes up to $1,000,000; a flat $130,000 on homes from $1,000,000 to $1,500,000; then it phases down to a $24,000 floor at $1,850,000 and above.
- What counts: condos, condo townhomes, freehold townhomes and detached homes bought new from a builder all qualify.
- Timing rules: the home has to be built within the program’s deadlines (details below), which is why the builder’s construction schedule matters as much as the price.
How much you save at each price
New-home prices in Ontario are quoted with HST built in, and builders have always collected the old, much smaller rebates on your behalf. The 2026 relief is far larger. Here is what it is worth across the price bands:
| Purchase price | HST relief for agreements signed Apr 1, 2026 – Mar 31, 2027 |
|---|---|
| Up to $1,000,000 | Full 13% HST removed |
| $1,000,000 – $1,500,000 | Rebate capped at $130,000 |
| $1,500,000 – $1,850,000 | Phases down from $130,000 to $24,000 |
| $1,850,000 and above | $24,000 |
Worked examples, assuming a price before HST:
- $550,000 townhome at Lakeview Village in Mississauga: 13% is $71,500 of HST that no longer has to be paid.
- $600,000 downtown condo: about $78,000.
- $900,000 townhome in Markham or Aurora: about $117,000.
- $1,200,000 detached home: the cap applies, so $130,000.
- $1,700,000 home: roughly $69,000, because the relief is phasing down between $1.5M and $1.85M.
- $2,500,000 luxury suite: the $24,000 floor.
The sweet spot is obvious. Under $1,000,000 the relief is a straight 13% price cut, which is more than most builder incentives of the last three years combined. That is why the projects worth looking at hardest right now are the ones with entry prices in the $450,000 to $950,000 range, from waterfront condos in Mississauga to freehold towns in Oshawa.
Who qualifies
Three things have to be true:
- You are buying new from a builder. Resale homes do not qualify, and neither do most assignment purchases of someone else’s pre-construction contract (ask us before assuming an assignment is covered).
- The home will be a primary residence or a long-term rental. You, your spouse or a close relative can live in it, or you can rent it out as a long-term residential rental. Short-term rentals do not qualify.
- The agreement is signed inside the window. The purchase agreement date is what counts, not the closing date. A deal signed on March 31, 2027 qualifies; one signed on April 1, 2027 does not, unless the governments extend the program.
Investors should read point two twice. For the first time, an Ontario HST relief this large applies to long-term rental purchases, which changes the math on a $500,000 to $800,000 condo or townhome bought to hold. We cover that case in our guide for rental investors.
The timing rules that can catch you out
The relief is tied to when the home gets built, not only when you sign. As summarised by Woitzik Polsinelli LLP in June 2026:
- Primary residences: construction must begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031.
- Rental properties: construction must be substantially completed on or before December 31, 2029.
Earlier summaries of the program also described a shorter completion deadline for projects that started construction before the window opened. The practical advice is the same either way: for a high-rise tower that broke ground in early 2026 with occupancy promised for 2030, do not assume the relief applies until the builder confirms it in writing. For a townhome finishing in 2027 or 2028, or a condo with 2029 occupancy, the timing is comfortable.
This is one of the first things we check for every project on this site. Each project page shows the builder’s construction start and expected occupancy so you can see where it sits against the deadlines.
How you actually receive the money
Ontario’s side of the program became law on May 12, 2026 (the HST Relief Implementation Act (Residential Property Rebates), 2026). The federal government still has to finish the CRA mechanics, and as of mid-2026 it had not published a date. What that means in practice:
- Agreements signed from April 1, 2026 onward are expected to qualify once the system is live, provided the other rules are met.
- The intended route is a builder credit at closing: the builder applies the relief and you pay the lower amount, which is how new-home rebates have worked in Ontario for years.
- If your closing happens before the application system opens, you may have to pay the provincial HST at closing and claim it back from the CRA afterwards. Ask your lawyer to build this into your closing plan.
The first-time buyer rebate is separate, and runs longer
If you have never owned a home, there is a second program you should know about. The federal and Ontario first-time home buyer rebates remove the full 13% HST on a new home up to $1,000,000, phasing down to a $24,000 floor at $1,500,000, for agreements signed from March 20, 2025 until the end of 2030. It is already enacted and the CRA is processing claims. A first-time buyer signing before March 31, 2027 is covered by both programs; after that date, the first-time buyer rebate carries on. We explain how to stack it with the FHSA and the Home Buyers’ Plan in our first-time buyer guide.
What to do before March 31, 2027
- Shortlist projects under $1,000,000 with occupancy inside the deadlines. Our project database filters by price band and shows occupancy dates.
- Get the builder’s price list and deposit structure in writing. Several builders now offer fixed-dollar deposits of $60,000 to $110,000 spread over a year or more, which pairs well with a 13% price cut.
- Ask the builder to confirm HST eligibility for the specific home and whether the relief will be credited at closing.
- Have a real estate lawyer review the agreement before the cooling-off period ends (ten days for a new condo in Ontario).
Quick answers
How much is the HST rebate on a new home in Ontario in 2026?
For purchase agreements signed between April 1, 2026 and March 31, 2027, the full 13% HST is removed on a new home priced up to $1,000,000. The relief is capped at $130,000 for homes between $1,000,000 and $1,500,000, phases down to $24,000 at $1,850,000, and is $24,000 above that.
Do I have to be a first-time buyer?
No. The 2026 relief applies to all buyers of a new home from a builder in Ontario, for a primary residence or a qualifying long-term rental.
Does it apply to rental properties?
Yes, for long-term residential rentals; short-term rentals do not qualify. For rentals the home must be substantially completed by December 31, 2029.
What is the deadline?
The purchase agreement must be signed by March 31, 2027. Primary residences must start construction by December 31, 2028 and complete by December 31, 2031.
Does a resale home qualify?
No. The relief is for new homes bought from a builder.
Find homes that fit the full HST relief
We track every GTA project that is selling now, with entry prices, occupancy dates and deposit structures, and we flag which ones sit comfortably inside the HST timing rules. Tell us your budget and where you want to be and we will send the current price lists.
Chat with an expert on WhatsApp — an expert will reply within minutes — or browse every project with current pricing and use the form below to get price lists and floor plans.
Sources: CP24, March 25, 2026; Baker Tilly, Ontario expands HST relief; Woitzik Polsinelli LLP via Mondaq, June 15, 2026; TRREB.
This article is general information from a real estate brokerage, not tax or legal advice. Rebate amounts, eligibility and timing rules are set by the federal and Ontario governments and can change; confirm your situation with the builder and a tax professional before you sign. Prices quoted are “from” prices published by builders or their co-operating brokerages on the dates noted and are subject to change.
