HST Rebate on New Homes in Ontario: 2026 Buyer Guide
If you sign an agreement to buy a newly built home in Ontario between April 1, 2026 and March 31, 2027, and the home will be your primary residence, you may get back the full 13% HST, up to $130,000. You do not have to be a first-time buyer. Homes priced up to $1 million get full relief. Homes up to $1.5 million can get the $130,000 maximum, and the amount drops gradually on homes between $1.5 million and $1.85 million. Above $1.85 million, the existing Ontario rebate of up to $24,000 still applies.
The $130,000 comes from two programs. Ontario’s Enhanced New Housing Rebate returns up to $80,000 of the 8% provincial portion. The Ontario New Home Affordability Payment covers up to $50,000, equal to the 5% federal portion. Agreements signed before April 1, 2026 fall under the earlier rules, which are more generous for first-time buyers than for everyone else.
RealEstateLawyers.ca LLP is an Ontario real estate law firm that closes home purchases across the province, including new builds. This guide covers who qualifies, how much you can get back and how the money reaches you.
How HST Works on a New Home
HST in Ontario is 13%: 5% federal and 8% provincial. It applies to newly built homes and to homes that have been substantially renovated. Most resale homes do not carry HST.
Most Ontario builders quote prices that include HST, with the buyer’s rebates assigned back to the builder. That means you may never see the rebate as a separate cheque. Instead, it is built into the price or shows up as a credit on closing. Read how your agreement handles HST before you sign.
How Much You Can Get Back
For agreements signed from April 1, 2026 to March 31, 2027, for a home you or a relative will live in:
| Home price | Maximum relief | How it is made up |
|---|---|---|
| Up to $1,000,000 | Full 13% HST, up to $130,000 | Provincial 8% plus the 5% equivalent payment |
| $1,000,000 to $1,500,000 | Up to $130,000 | Up to $80,000 provincial plus up to $50,000 for the 5% portion |
| $1,500,000 to $1,850,000 | Reduces gradually toward $24,000 | Phased out as the price rises |
| Over $1,850,000 | Up to $24,000 | Existing Ontario new housing rebate only |
To qualify, construction must start by the end of 2028 and the home must be substantially completed by the end of 2031. Agreements signed before April 1, 2026 that are cancelled and re-signed to fit inside the window are treated as outside it. Ontario passed the enabling law, Bill 114, in May 2026.
Which Rebate Applies to Your Agreement
The date you sign the agreement of purchase and sale decides which rules apply.
| Your situation | What you can claim |
|---|---|
| Any buyer, agreement signed April 1, 2026 to March 31, 2027 | Enhanced New Housing Rebate (up to $80,000) and New Home Affordability Payment (up to $50,000) |
| First-time buyer, agreement signed on or after March 20, 2025 | Federal first-time buyer GST/HST rebate (up to $50,000) and Ontario first-time buyer rebate (up to $80,000) |
| Repeat buyer, agreement signed before April 1, 2026 | Ontario new housing rebate (up to $24,000), plus a small federal rebate on lower-priced homes |
First-time buyers who sign inside the 2026 window claim the federal first-time buyer rebate first. Ontario’s payment then covers any part of the 5% portion that rebate does not. On the provincial side, the combined amount is capped at $80,000 or the provincial HST you paid, whichever is lower. Across all programs, you cannot get back more than the HST charged on the home.
Worked Example: A $900,000 New Home
A repeat buyer purchases a new home for $900,000 before HST and will live in it. The table compares an agreement signed in February 2026 with one signed in June 2026.
| Item | Signed February 2026 | Signed June 2026 |
|---|---|---|
| HST at 13% | $117,000 | $117,000 |
| Ontario new housing rebate | -$24,000 | Included in the line below |
| Enhanced New Housing Rebate (8% portion) | Not available | -$72,000 |
| New Home Affordability Payment (5% portion) | Not available | -$45,000 |
| Net HST paid | $93,000 | $0 |
The example uses a price before HST to keep the math simple. In a real agreement, the price usually includes HST with the rebates assigned to the builder, so the saving shows up in the price or as a credit on closing.
How the Rebate Reaches You
There are two routes, and your agreement decides which one you take.
| Route | How it works | When you get the money |
|---|---|---|
| Builder credit | You assign the rebate to the builder, who credits it on your statement of adjustments | On closing day |
| Direct claim | You pay the full HST on closing, then apply to the CRA on Form GST190 with schedule RC7190-ON | After the CRA assesses your application |
Some builders have been cautious about crediting the enhanced amounts up front while the program rolls out. The Ontario Home Builders’ Association says the CRA expects processing to take about 120 days once its systems are in place, and that New Home Affordability Payments are expected to begin in early 2027. If your builder will not credit the rebate, budget to cover the full HST on closing and wait for the refund. First-time buyers claiming directly have two years from the date ownership or possession transfers to apply.
Your lawyer checks how the agreement treats HST and confirms the rebate credit on the statement of adjustments before you send your closing funds. Our guide on how much a real estate lawyer costs in Ontario walks through the other amounts on a closing statement. Our article on buying a home from a builder covers what else to review in a builder’s agreement.
Occupancy Rules and Repayment Risk
The owner-occupied rebates require the home to be the primary residence of you or a relative. If you buy a new unit to rent out, you may qualify for a rental property rebate instead, which has its own rules and is claimed from the CRA.
Repayment risk is real. If a builder credits a rebate to a buyer who does not qualify, the rebate may have to be paid back. The builder and the buyer can both be held responsible, and most builder agreements require the buyer to repay the builder. Tell your lawyer early if your plans for the home might change.
First-time buyers can also claim the land transfer tax refund on a new build. Our guide to first-time buyer land transfer tax in Ontario explains how that refund is calculated and claimed at closing.
Confirm Your Rebate Before Closing Day
The rebate can be the largest number on a new-build closing statement, so check it before you send your funds. RealEstateLawyers.ca LLP closes new-build purchases across Ontario for a flat legal fee, with disbursements listed separately on your quote, and you can speak with a lawyer about how your agreement handles HST. Our fee also includes one remote video signing appointment, available 7 a.m. to midnight (Eastern) seven days a week. Request your free quote and send us your agreement as soon as you have it.
Frequently Asked Questions
Do I have to be a first-time buyer to get the 2026 HST rebate?
No. For agreements signed from April 1, 2026 to March 31, 2027, the enhanced relief is open to any buyer of a qualifying new home that will be a primary residence.
I signed before April 1, 2026. Can I re-sign to qualify?
No. Agreements that are cancelled and re-signed to fall inside the window are treated as outside it. Earlier agreements stay under the earlier rules, which include the first-time buyer rebates.
What if my builder will not credit the rebate on closing?
You pay the full HST on closing and apply to the CRA yourself. Plan for a wait, since processing is expected to take several months.
Does the HST rebate apply to resale homes?
No. Most resale homes do not carry HST, so there is no rebate to claim. The rules cover newly built and substantially renovated homes.
What happens if I rent the home out instead of moving in?
You may lose the owner-occupied rebate and have to repay any amount the builder credited. A rental property rebate may be available instead, under separate rules.
This article provides general information only and is not legal advice. Rebate amounts and rules are current as of October 26, 2026 and can change. For advice about your new-build purchase, speak with a lawyer.
