The Ontario HST rebate on new homes is the biggest housing tax break the province has ever offered. For agreements signed between April 1, 2026 and March 31, 2027, buyers of new homes can get up to $130,000 of HST relief. Best of all, you also no longer have to be a first-time buyer to qualify.
However, the program has several layers, firm deadlines and price bands. So this guide breaks down how the Ontario HST rebate works, how much you can save and how to claim it.
What is the Ontario HST rebate on new homes?
New homes in Ontario carry 13% HST: a 5% federal part and an 8% provincial part. For example, on a $900,000 home, that is $117,000 of tax. So a full rebate makes a huge difference to what you actually pay.
Since 2026, three programs now work together, according to a June 2026 summary by SV Law:
The three layers of new-home HST relief in Ontario
| Program | Who qualifies | Maximum |
|---|---|---|
| Federal first-time buyer GST rebate | First-time buyers | $50,000 (5% part) |
| Ontario first-time buyer rebate | First-time buyers | $80,000 (8% part) |
| Enhanced Ontario HST rebate | All buyers of new homes | $130,000 (full 13%) |
In other words, first-time buyers were already able to get the full 13% back. Now, however, the enhanced Ontario HST rebate extends similar relief to repeat buyers, move-up buyers and downsizers for one year.
How much is the Ontario HST rebate worth?
Generally, the amount depends on the price of the home. For the enhanced program, Osler summarizes the price bands this way:
Enhanced Ontario HST rebate by home price
| Home price | HST relief |
|---|---|
| Up to $1,000,000 | Full 13% HST (up to $130,000) |
| $1,000,000 to $1,500,000 | Flat $130,000 |
| $1,500,000 to $1,850,000 | Declines from $130,000 to $24,000 |
| Over $1,850,000 | $24,000 (existing new housing rebate) |
Approximate HST relief on a new Ontario home
Who qualifies for the Ontario HST rebate?
For the enhanced, all-buyer program, you generally must:
- Buy a new home from a builder, or build one, as your primary residence.
- Sign your agreement of purchase and sale between April 1, 2026 and March 31, 2027.
- Have construction start by December 31, 2028.
- Have the home substantially completed by December 31, 2031.
Meanwhile, first-time buyers can rely on the first-time buyer rebates, which cover agreements signed from March 20, 2025 through the end of 2030. For details on the federal part, also read our first-time buyer GST rebate guide.
How to claim the Ontario HST rebate
Claiming your HST relief
Ask the builder to credit it
Most builders credit the rebate on the statement of adjustments at closing, so the savings reduce what you owe.
Otherwise, apply to the CRA
Use Form GST190 with the Ontario schedule RC7190-ON for homes bought from a builder.
Keep your paperwork
Also hold on to your purchase agreement, statement of adjustments and proof of occupancy.
Watch the two-year limit
Direct applications generally must be filed within two years of taking ownership.
How the Ontario HST rebate changes your mortgage math
When your builder credits the rebate at closing, the effective price of the home falls. As a result, you may need a smaller mortgage. You may also qualify for a lower CMHC insurance premium, because the premium is based on your loan amount.
Also, remember that the rebate does not reduce the minimum down payment unless the builder lowers the purchase price itself. So speak with your lender early, and get a mortgage pre-approval before you sign.
Is now the time to buy new in Ontario?
The enhanced rebate is a limited-time offer for repeat buyers, so the March 31, 2027 deadline matters. Still, a rebate is only a good deal when the home itself fits your budget. Before you commit, check how much mortgage you can afford and compare the new-build price with similar resale homes nearby.
Frequently asked questions
Up to $130,000. For homes up to $1 million, the full 13% HST can be removed. Between $1 million and $1.5 million the relief is a flat $130,000, and it then declines to $24,000 by $1.85 million.
No. For agreements signed between April 1, 2026 and March 31, 2027, the enhanced rebate is open to all buyers of new homes used as a primary residence. First-time buyers also have separate rebates that run through 2030.
No. It only applies to new and substantially renovated homes, because resale homes do not charge HST on the purchase price.
Your builder usually credits it at closing. Otherwise, you can apply to the CRA using Form GST190 with the RC7190-ON Ontario schedule.
Sources: SV Law (June 2026) · Osler · Gowling WLG · CRA: FTHB GST/HST rebate