Ontario Expanding HST Rebate to Lower the Cost of New Homes in Partnership with the Federal Government
Proposal would save homebuyers up to $130,000, spurring new home construction and keeping costs down for families
MISSISSAUGA — The Ontario government is continuing to lower costs and help families realize the dream of homeownership by removing the full 13 per cent of the Harmonized Sales Tax (HST) for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000, as part of the upcoming 2026 Budget. This maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million, and would decrease proportionally from $130,000 at $1.5 million to a maximum of $24,000 for homes valued at $1.85 million and above, building on the province and federal government’s previous move to rebate the HST for all first-time buyers of new homes up to $1 million.
The federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, subject to passage of federal legislation, which would approximately cover the federal five per cent portion of the HST that is being removed from new homes in Ontario. This partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario.
“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” said Premier Doug Ford. “Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.”
