Ontario Eliminates Full 13% HST on Newly Built Homes Up to $1 Million
The largest new-construction tax incentive Ontario has seen in years — saving homebuyers and investors thousands on eligible purchases signed between April 1, 2026 and March 31, 2027.
Ontario has announced a full elimination of the 13% Harmonised Sales Tax (HST) on newly built homes priced up to $1 million. This is not a partial rebate or a deferred credit — it is a complete removal of the provincial and federal sales tax components on qualifying new home purchases.
13% HST
Fully eliminated on newly built homes up to $1 million
$1M Threshold
Maximum purchase price to qualify for full HST relief
1 Year Window
Agreements signed April 1, 2026 – March 31, 2027
For context, on a $900,000 newly built home, the HST would previously have added $117,000 to the purchase price. Under this new relief programme, that burden is entirely removed — a transformative saving for buyers at any stage of their property journey.
Who Qualifies for This Tax Relief?
This programme is intentionally broad in its reach. Unlike some housing incentives that are restricted solely to first-time buyers, Ontario's HST elimination applies to all homebuyers — including those purchasing a second property or investing in a new rental unit.
First-Time Buyers
Benefit fully from the HST elimination and may also stack additional federal rebates on top, maximising total savings on their first home purchase.
Move-Up Buyers
Existing homeowners purchasing a newly built home priced up to $1 million are equally eligible, with no restriction based on prior ownership.
Rental Property Investors
Investors purchasing new builds intended as rental properties can also qualify, reducing the upfront cost of growing a rental portfolio in Ontario.
Up to $130,000 in Combined Savings
Beyond the provincial HST elimination, qualifying buyers may be eligible for additional rebates at both the federal and provincial levels, stacking savings that can reach up to $130,000 in combined relief. Here is how the savings break down:
$130K
Maximum Combined Savings
Total federal and provincial rebates available to eligible buyers
$50K
Federal First-Time Buyer Rebate
GST Rebate available exclusively to first-time homebuyers on qualifying purchases
13%
HST Fully Eliminated
Complete removal of the Harmonised Sales Tax on new builds up to $1M
First-time buyers stand to benefit the most by combining the provincial HST elimination with the federal First-Time Home Buyer GST Rebate — potentially saving up to $130,000 on a single qualifying purchase.
How the Savings Stack Up: A Practical Example
Purchasing a $900,000 Newly Built Home
To illustrate the real-world impact, consider a buyer purchasing a newly built home for $900,000 under an agreement signed in October 2026:
Previous HST cost: $117,000 (13% of $900,000)
HST under new relief: $0
Immediate saving: $117,000
Additional federal rebate (first-time buyer): Up to $50,000
Total potential saving: Up to $167,000
These are not marginal adjustments — they represent a genuinely substantial reduction in the total cost of homeownership for buyers who act within the qualifying window.
Key Eligibility Conditions
Purchase agreement signed between April 1, 2026 and March 31, 2027
Newly built home priced at or below $1 million
Property located in Ontario
First-time buyer status required for federal GST rebate only
Ontario's Largest New-Construction Incentive in Years
Provincial officials have described this programme as the largest tax incentive for new construction in Ontario in recent memory. It arrives at a pivotal moment for the province's housing market — one facing persistent affordability challenges, constrained supply, and elevated construction costs that have made new builds increasingly out of reach for many buyers.
By removing the HST burden entirely, the province is simultaneously supporting individual buyers and signalling to developers that demand for new construction will be sustained — a signal that could help unlock more housing starts across the province.
Next Steps: Calculate Your Potential Rebate
Every buyer's situation is unique — the combination of rebates available to you will depend on factors including purchase price, first-time buyer status, and intended use of the property. The Ontario government has made it straightforward to understand your position.
01
Confirm Your Agreement Date
Ensure your purchase agreement is signed between April 1, 2026 and March 31, 2027 to qualify for the full HST elimination.
02
Verify the Purchase Price
The property must be a newly built home priced at or below $1 million. Confirm this with your builder or real estate professional.
03
Check First-Time Buyer Status
If you are a first-time buyer, you may also be eligible for the federal GST Rebate of up to $50,000 on top of the provincial relief.
04
Use the Official Rebate Calculator
Visit the HST Rebate Eligibility Calculator on the Ontario government's website to calculate your exact savings and confirm eligibility.