Ontario Is Removing HST on New Homes – Here Is Everything You Need to Know
If you have been thinking about buying a home in Ontario, now might genuinely be the best time in years to make that move. On March 25, 2026, Premier Doug Ford announced something big. The Ontario government, together with the federal government, is temporarily removing the HST on newly built homes. This time, it is open to almost everyone.
WIAURA brings you a complete breakdown of what this means, who it applies to, and what you need to do.
A Quick Summary for Easy Reading
- The HST on new homes in Ontario is being temporarily removed for one year
- It applies to all eligible buyers, not limited to first-time buyers anymore
- Maximum savings of up to $130,000
- Applies to homes up to $1.5 million at the full rebate amount
- The home must be used as a primary residence or rental property
- Purchase agreements must be signed between April 1, 2026 and March 31, 2027
- The total tax relief across Ontario is expected to be $2.2 billion
What Exactly Is the HST Rebate on New Homes?
HST stands for Harmonized Sales Tax. In Ontario, that is a 13% tax added to the purchase price of a new home. On a home that costs $800,000, for example, that tax alone comes to $104,000. It is a significant amount of money, and for many families it is one of the biggest barriers to buying a newly built home.
Until now, this rebate was only available to first-time homebuyers. The province, in partnership with the federal government, is now planning to temporarily expand the 13% HST break to all buyers of newly built properties in Ontario.
How Much Money Can You Save?
This is where it gets really interesting. Homes valued at up to $1.5 million would be eligible for a maximum of $130,000 in relief.
Here is the full breakdown by home price:
- Homes up to $1 million: You get the full HST removed. Maximum rebate of $130,000.
- Homes between $1 million and $1.5 million: You still get the full $130,000 rebate.
- Homes between $1.5 million and $1.85 million: You get a partial rebate that decreases gradually.
- Homes above $1.85 million: You still qualify for $24,000 in relief under existing rules.
Together, the federal and provincial relief would provide up to $130,000 for eligible new homes. Ontario says the total joint tax relief would be almost $2.2 billion.
Who Qualifies for This Rebate?
This is important to understand clearly. The rebate is now expanded to a much wider group of buyers, including people who have owned a home before, and also some investors who plan to rent out their units.
So to be clear, you qualify if:
- You are buying a brand new home to live in as your primary residence
- You are buying a new home to rent out to tenants as a residential rental property
- You are a first-time buyer or someone who has owned a home before
You do not qualify if you are buying purely for investment purposes without the property being used as a residence or rental.
When Does This Apply? Key Dates You Must Know
The proposed new rules would be in effect from April 1, 2026 to March 31, 2027. That is a one year window only. After that, it goes back to the old rules.
To qualify, your situation must meet one of these two conditions:
Option 1
- Your purchase agreement with the builder is signed between April 1, 2026 and March 31, 2027
- Construction of the home starts on or before December 31, 2028
- Construction is substantially completed by December 31, 2031
Option 2
- Construction already started before March 31, 2026
- Your purchase agreement is signed between April 1, 2026 and March 31, 2027
- Construction is substantially completed by December 31, 2029
The key takeaway is simple. The purchase agreement must be signed within this one year window. So if you are even slightly thinking about buying a new home, this is the time to act.
Why Is the Government Doing This?
Premier Doug Ford framed this announcement within the context of economic challenges facing Ontario. The government is working closely with the federal government to lower costs for families, keep workers on the job, and build a more competitive and resilient economy.
There is also a housing supply side to this. The expanded HST relief could stimulate an additional 8,000 housing starts in Ontario, support up to 21,000 jobs, and increase GDP by $2.7 billion.
In plain terms, the new home construction market in Ontario has been slow. This rebate is designed to get buyers moving, get builders building again, and get more homes onto the market.
Is This Confirmed? Is It Already Law?
This is an important question and you deserve an honest answer. While the announcement comes from the Ontario government and the federal government has agreed to cover the federal portion of the HST, the changes still need to pass as part of the upcoming Ontario 2026 Budget and through federal legislation.
So the short version is this. It has been announced that both levels of government have agreed in principle, the final legislation still needs to pass. Buyers should consult with a legal or tax professional to confirm eligibility and ensure they meet all requirements before making any decisions.
What Should You Do Right Now?
If this applies to you, here are your next steps:
- Talk to a mortgage broker to understand what you can afford and get pre-approved
- Speak to a real estate lawyer to understand how the rebate would apply to your specific purchase
- Contact new home builders in your area as many are already promoting this rebate
- Act within the window as this only runs from April 1, 2026 to March 31, 2027
- Stay updated as more details will be released following the Ontario 2026 Budget
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