2026 New Home HST Rebate: What Buyers Need to Know
The Ontario new home HST rebate introduced in 2026 can provide eligible buyers with substantial tax relief when purchasing a qualifying new or substantially renovated home.
Under the Ontario Enhanced New Housing Rebate (ENHR), eligible individuals can receive combined provincial HST relief of up to $80,000 on qualifying new or substantially renovated homes. Ontario also introduced the Ontario New Home Affordability Payment (ONHAP), which may provide up to $50,000 of additional relief corresponding to the federal portion of HST. Together, qualifying buyers may receive as much as $130,000 in combined relief on eligible homes.
Who can qualify?
For a home purchased from a builder, the Ontario ENHR is generally available where the agreement of purchase and sale is entered into on or after April 1, 2026 and on or before March 31, 2027.
The home must generally be acquired for use as the buyer’s or a relation’s primary place of residence. Construction must also meet the program’s timing requirements.
How much relief is available?
For qualifying new homes:
- Up to $1 million: up to $80,000 of provincial HST relief
- Above $1 million and up to $1.5 million: up to $80,000
- Above $1.5 million and below $1.85 million: a reduced provincial rebate may be available
- $1.85 million and above: the enhanced Ontario rebate is not available, although the existing Ontario new housing rebate may still apply in qualifying cases
The ONHAP may provide up to $50,000 of additional relief, although the amount can be reduced by other federal housing rebates the purchaser receives.
Is this only for first-time buyers?
No.
The Ontario ENHR is not limited to first-time homebuyers. Eligible purchasers may qualify when buying a qualifying new home for use as their own or a relation’s primary residence.
Ontario also has separate first-time homebuyer HST relief rules, so buyers should review which programs apply to their specific situation.
Can the rebate be credited at closing?
In qualifying situations, a builder may pay or credit the rebate to the buyer as part of the transaction.
However, buyers remain responsible for ensuring that they actually qualify. The CRA notes that if a builder credits the rebate and the purchaser later turns out to be ineligible, the purchaser may have to repay that amount.
What should pre-construction buyers verify?
Before relying on advertised HST savings, buyers should confirm:
- the date of the agreement of purchase and sale
- the purchase price
- intended use of the property
- construction and completion timelines
- whether the builder is crediting the rebate at closing
- whether the advertised price already assumes a rebate
- whether another federal rebate affects the ONHAP amount
- what documents will be required
- what happens if eligibility changes before closing
This is especially important with pre-construction purchases because the agreement date, construction date and closing date can all affect eligibility.
Why this matters in today’s market
For some buyers, HST relief can materially change the effective cost of purchasing a new home.
That makes it important to compare more than just the advertised purchase price. Deposit requirements, builder incentives, closing costs, financing, development charges and rebate eligibility can all affect the final cost of the transaction.
A project that initially appears more expensive may compare differently once legitimate incentives and available tax relief are considered.
Team Ace perspective
At Team Ace, we help buyers compare new construction, pre-construction and resale opportunities across the GTA and select Ontario communities.
When reviewing a new-home opportunity, we look beyond the advertised price and help buyers understand available incentives, deposit structures, timelines and other factors that may affect the transaction.
Considering a new home purchase? Contact Team Ace to review current projects, builder incentives and available inventory.
