The 2026 Ontario HST/GST Rebate on a New Home: Save Up to $130,000

Buying a brand-new home in Ontario comes with a tax most buyers underestimate. Unlike a resale home, a newly constructed or substantially renovated home is subject to 13% HST (a 5% federal GST portion plus an 8% Ontario portion). On a $900,000 new home, that’s over $100,000 in tax.

Here’s the good news: in 2026, Ontario is offering the most generous new-home tax relief in the province’s history — and you don’t have to be a first-time buyer to benefit. Eligible buyers of a qualifying new home can save up to $130,000 in HST/GST. Here’s how it works.

1. The headline: up to $130,000 back — for all eligible buyers

In its 2026 Budget, Ontario announced a temporary enhancement to its New Housing Rebate that removes the full 8% provincial portion of the HST on eligible new homes valued up to $1 million — worth up to $80,000. Ontario also committed to provide relief equal to the 5% federal portion (roughly another $50,000) for the same buyers. Combined, that’s a rebate of up to $130,000 on a qualifying new home.

Crucially, this enhanced relief is not limited to first-time buyers. Move-up buyers — and even investors building long-term rental housing — can qualify, as long as the home is a primary residence (yours or a close relation’s) or an eligible rental property.

2. How much you get, by home price

• Up to $1,000,000: the full 13% HST is rebated — up to $130,000.
• $1,000,001 to $1,500,000: the maximum $130,000 rebate is maintained.
• $1,500,001 to $1,850,000: the rebate declines on a sliding scale from $130,000 down to $24,000.
• Over $1,850,000: the existing $24,000 rebate applies.

Quick example: An eligible buyer purchases a newly built $950,000 home in Oakville. The 13% HST would normally add roughly $123,500. Under the enhanced relief, most or all of that tax can be recovered — dramatically lowering the real cost of ownership.

3. The catch: it’s a one-year window

This is a temporary program, so timing is everything. To qualify, your agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. For a home bought from a builder, construction must generally begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031. (Owner-built homes and rental properties have their own construction timelines.)

Because both the provincial and federal portions depend on legislation and federal regulations being finalized, confirm the current status with your builder or a tax advisor before you rely on it.

4. Do you qualify? The new-home buyer checklist

You’ll generally qualify for the enhanced relief if:

• You’re buying or building a new or substantially renovated home.
• The home is your primary residence (or a close relation’s) — rental builds qualify under a parallel provincial rebate.
• You do not need to be a first-time buyer; move-up buyers qualify too.
• Your agreement of purchase and sale is signed between April 1, 2026 and March 31, 2027.
• The build meets the program’s construction and completion deadlines.

Already a first-time buyer? You may also be eligible for separate first-time-buyer rebates at the federal and provincial level. During this one-year window, though, the enhanced relief already extends the full benefit to most buyers — and the total Ontario rebate on any one home is capped at the enhanced amount.

5. Building a custom home? You’re in the sweet spot

Because this relief applies to new construction, it’s tailor-made for buyers building a custom home or garden suite — exactly what we do at Golden Brick Homes. When you build with us in Oakville, Burlington, Mississauga, or Hamilton, we’ll help you understand which rebates your project may qualify for and make sure the paperwork is handled correctly so you don’t leave money on the table.

How to claim

For a builder-built home, the rebate may be credited at closing or filed shortly after; for an owner-built home, you apply directly to the CRA after substantial completion. The required forms are submitted to the Canada Revenue Agency, and the Ontario portion is claimed at the same time. Note that builders can only credit the enhanced provincial rebate once the federal regulations that implement it are in place — otherwise you pay the HST at closing and apply for the rebate afterward.

Thinking about building — and want to keep more money in your pocket? Schedule a strategy consultation or call +1 (647) 772-1642.

This article is for general information only and is not tax or legal advice. These rebate programs are temporary, subject to legislation and federal regulations, and carry specific eligibility rules, deadlines, and dollar thresholds that can change. Confirm your eligibility with the Canada Revenue Agency and a qualified tax professional before making decisions.