Ontario’s $130,000 HST Rebate: New Home HST Rebate Calculator

1. The Ontario Expansion Window (April 1, 2026 – March 31, 2027)

For exactly one year, Ontario is removing the 8% provincial portion of the HST for all buyers (not just first-time buyers). Furthermore, through a special federal-provincial cost-sharing arrangement, the government is also covering the 5% federal GST for non-first-time buyers during this window. This results in a complete 13% tax elimination for homes under $1 million.

2. The Federal Foundation: Bill C-4 (Effective March 20, 2025)

Did you miss the 2026 expansion window? If you are a first-time home buyer, you are still protected. Federal Bill C-4 (which received Royal Assent on March 12, 2026) permanently eliminates the 5% federal GST portion for eligible first-time buyers. This federal rebate saves first-time buyers up to $50,000 on homes up to $1 million and applies to purchase agreements signed between March 20, 2025, and December 31, 2030.

For a limited one-year window (April 1, 2026 – March 31, 2027), Ontario is opening its HST rebate to all buyers. This is a major shift from the previous program, which only allowed first-time buyers to apply.

For Primary Residences:

• Signature Window: You must sign the purchase agreement between April 1, 2026, and March 31, 2027.
• Construction Start: The builder must begin construction on or before December 31, 2028.
• Completion Date: The home must be substantially completed on or before December 31, 2031.

For Investors & Residential Rental Properties:

To encourage housing supply, investors can claim the exact same 13% rebate, provided the property is used as a long-term residential rental.

• Signature Window: You must sign the purchase agreement between April 1, 2026, and March 31, 2027.
• Completion Date: Construction must be substantially completed on or before December 31, 2029.

(Note: If construction on a rental began before March 31, 2026, you can still qualify if you sign within the expansion year and finish by the 2029 deadline).

For most buyers, navigating the CRA is unnecessary. Here is how the money is handled:

1. Automatic at Closing: In most pre-construction purchases, the builder applies the HST rebate directly to your closing costs. This means the savings are instantly reflected in your final purchase price, rather than coming as a delayed tax refund.

2. Retroactive Claims: If you took ownership of a home between March 20, 2025, and March 12, 2026 (before Bill C-4 became law), the rebate does not apply automatically. You must apply directly to the CRA using official forms (like Form GST190) and retain thorough documentation of your closing documents.

Yes! You can stack this rebate with other powerful financial tools to lower your out-of-pocket costs even further:

• First Home Savings Account (FHSA): Save up to $40,000 tax-free for your down payment.
• RRSP Home Buyers' Plan (HBP): Withdraw up to $60,000 tax-free from your retirement savings.
• First-Time Home Buyers' Tax Credit: Claim a $1,500 federal credit on your income tax return the year you buy.

By focusing strictly on new construction, these rebates are a strategic move to fix the root of the housing crisis: supply. The Ontario government projects this policy will spark 8,000 new housing starts, support 21,000 jobs, and inject $2.7 billion into the province's GDP. Builders finally have the green light to launch new projects. However, buyers should act strategically—record-high tax relief often drives up buyer demand, which can lead to higher base home prices.

Do not leave money on the table. If you are entering the new-build market, follow these steps:

1. Watch the $1M and $1.5M Marks: Upgrades and add-ons can easily push a $990,000 home over the $1 million threshold, changing how your rebate is calculated.

2. Verify the Deadlines: Have a real estate lawyer review the specific construction deadlines in your builder's contract. If the builder's projected completion date extends past December 31, 2031, your rebate could be at risk.

3.Confirm the Statement of Adjustments: Always ask your builder and lawyer to confirm that the HST credit is accurately reflected in your closing costs before you sign.

Does this rebate apply to resale homes? No. Resale homes are not subject to HST, so they do not qualify for this program. This rebate is strictly for newly constructed homes or substantially renovated properties.

Am I considered a first-time buyer again? Under federal CRA guidelines, you are considered a first-time buyer again if you (and your spouse/partner) have not owned and occupied a home as your primary residence during the current calendar year or the four preceding calendar years.

What if I already signed a contract before April 1, 2026? If you are a first-time home buyer who signed an agreement on or after March 20, 2025, you still qualify for the Federal GST rebate (up to $50,000) and the matching provincial first-time buyer rebate. However, the universal expansion for non-first-time buyers strictly requires a signature between April 1, 2026, and March 31, 2027.

The 2026 legislative changes have dramatically lowered the barrier to entering the pre-construction market. With up to $130,000 in savings available, this is a landmark year for Ontario real estate. Run your numbers through our Ontario’s $130,000 HST Rebate: New Home HST Rebate Calculator today to see exactly how much you can save.

Contact our team today. We specialize in the Toronto and GTA pre-construction market. We will expertly navigate your builder's contract to ensure it is structured properly and your rebate eligibility is fully protected.

Disclaimer: This website is for informational purposes and intended for consumers with a bona fide interest in real estate. The data comes in part from the MLS® Reciprocity program and other reliable sources but is not guaranteed to be perfectly accurate. This content does not constitute legal or tax advice; always consult a qualified professional before entering a purchase agreement.