HST and new home rebates: Ontario Pre-Construction Guide

HST applies to new homes

New homes in Ontario are subject to 13% HST: a 5% federal part and an 8% provincial part. In most builder agreements for homes you will live in, the price already includes HST and you assign your rebates to the builder, so the rebates reduce the price you pay rather than coming back to you as a cheque.

Rebates for every buyer

If the home will be your (or a relative’s) primary residence, Ontario’s new housing rebate covers 75% of the provincial part, up to $24,000. A small federal rebate also applies to homes under $450,000.

Temporary enhanced relief: agreements signed April 1, 2026 to March 31, 2027

For homes bought as a primary residence, Ontario’s enhanced new housing rebate covers the full 8% provincial part up to $80,000, and the Ontario New Home Affordability Payment covers the 5% federal part up to $50,000. Together that removes the full 13% HST on homes up to $1 million, with the $130,000 maximum kept up to $1.5 million and a reduced amount up to $1.85 million. Construction must begin by December 31, 2028 and be substantially complete by December 31, 2031.

First-time home buyers

First-time buyers who sign with a builder between March 20, 2025 and the end of 2030 can get the federal first-time home buyers’ rebate (the full 5% federal part up to $50,000 on homes up to $1 million, phasing out at $1.5 million) and Ontario’s matching first-time buyer rebate on the provincial part.

Investors are treated differently

If you plan to rent the home rather than live in it, the owner-occupied rebates above don’t apply. You generally pay the full HST at closing and may apply afterwards for a rental property rebate. Check your agreement and budget for this.

HST rebate calculator

Estimated HST relief

$117,000

HST on $900,000 (13%): $117,000
Ontario enhanced new housing rebate: − $72,000
Ontario New Home Affordability Payment: − $45,000
HST after relief: $0

Based on the CRA's GST190 Ontario rebate schedule (RC7190-ON) and Ontario's ONHAP rules, checked October 2026. Eligibility depends on your agreement, construction dates and status; confirm with your lawyer.

General information only, reviewed October 2026. Confirm the details for your purchase with your lawyer.

HST and new home rebates