HST rebate on new homes in Ontario: Check your eligibility

A new home doesn’t automatically qualify for an HST rebate. The HST rebate on new homes in Ontario can provide eligible buyers with up to C$130,000 under the temporary enhanced program, including full relief from the 13% HST on qualifying homes valued up to C$1 million. For a home bought from a builder, the purchase agreement generally must be entered into from April 1, 2026, through March 31, 2027, and the home must meet the program’s eligibility conditions.

It’s understandable to focus on the purchase price, but your intended use of the home, the agreement date and how the rebate is handled at closing can also affect the outcome. This guide explains who may qualify for the enhanced or existing rebate, how the home’s value affects the amount, and what assigning the rebate or applying directly means for your closing. It also explains why an assignment purchase may require a closer look at the original agreement date, helping you approach this major purchase with greater clarity.

Eligibility for the existing GST/HST new housing rebate

Ontario’s HST rate on a new home is 13%, according to the Canada Revenue Agency. Claims can fail when buyers miss eligibility dates, don’t meet the residence requirement, or include a non-qualifying co-owner; even a 1% title share may void the entire claim.

Purchase and Construction Timing

For the temporary enhanced rebate, the Agreement of Purchase and Sale date sets an important eligibility window. A builder-purchased home generally needs an agreement dated April 1, 2026, through March 31, 2027. Construction must begin by December 31, 2028, and be substantially completed by December 31, 2031.

These dates apply to the enhanced program, not every existing rebate claim. Owner-built homes have different timing rules: construction generally must begin April 1, 2026, through March 31, 2027, and be substantially completed before 2030. Keep the signed agreement and construction records together; the dates help establish which rules apply.

Eligible Home Types

The rebate can cover a newly built home or a home substantially renovated to qualify as new housing. For a substantial renovation under the owner-built rules, at least 90% of the home’s interior must be removed or replaced. A resale home doesn’t qualify for the Ontario HST rebate because the sale isn’t subject to HST.

For the primary-residence category, buyers generally must intend to live in the home or have a relation use it as their primary residence. An owner-built home under the existing federal rebate rules must have a fair market value below C$450,000 at substantial completion. For an owner-built home, enhanced rebate eligibility depends on its value when construction or substantial renovation is substantially completed.

The existing federal and Ontario rebates are distinct from the temporary enhanced rebate. Under the standard federal new housing rebate, the federal portion refunds 36% of the 5% GST, up to C$6,300. Ontario’s standard provincial new housing rebate may provide up to C$24,000 when other eligibility conditions are met, including for some homes valued above C$450,000.

Price, intended use, ownership and timing all affect eligibility. Distinguish the established rebates from the enhanced program’s Agreement of Purchase and Sale window, then compare the home type and relevant dates with the applicable rules. This matters at closing, particularly when the purchase price reflects an assigned rebate.

Does the HST rebate change for homes with a base price over $1M?

Yes. For eligible homes above C$1 million, the temporary enhanced rebate changes by price band, while the existing Ontario rebate may still apply. A home valued above C$450,000 can remain eligible for the existing provincial rebate of up to C$24,000, subject to its conditions.

For builder purchases, the 2026-2027 enhanced program has a separate Agreement of Purchase and Sale window: April 1, 2026, through March 31, 2027. The program is described as proposed, so distinguish its potential relief from the existing rebate when reviewing the purchase terms.

• Above C$1 million to C$1.5 million: eligible buyers may receive a flat combined enhanced rebate of C$130,000.
• Above C$1.5 million and below C$1.85 million: the enhanced rebate is phased out based on purchase price.
• C$1.85 million or more: no enhanced Ontario rebate applies, though the existing provincial rebate of up to C$24,000 may still be available.

The price bands answer only part of the eligibility question. A builder-purchased home must meet the applicable use and construction conditions. For the enhanced primary-residence category, construction must begin by December 31, 2028, and be substantially completed by December 31, 2031. The HST on the supply must become payable on or before December 31, 2032.

The federal First-Time Home Buyers’ GST/HST New Housing Rebate is a separate program for eligible first-time buyers. It applies to qualifying purchase agreements entered into on or after March 20, 2025. Its eligibility requirements don’t replace the Ontario rebate’s price bands or conditions, so identify which program applies before assessing the expected amount.

For a home above C$450,000, the key distinction is between the existing provincial rebate and any enhanced or federal relief. Compare the purchase price, agreement date, intended use and construction timeline. Buyers considering a newly built home can also explore pre-construction property listings alongside the rebate terms.

Rebate assignment and application at closing

Eligible buyers can assign rebate proceeds to the builder at closing or apply directly to the Canada Revenue Agency. For the primary-residence category, the buyer generally must intend to live in the home or have a relation live there.

Assigning Rebate Proceeds to the Builder

Assigning the rebate authorizes the builder to receive eligible proceeds, often reducing the amount the buyer pays at closing. The purchase price shown may depend on meeting government eligibility and residency requirements and assigning the applicable rebate to the builder. Read the signed Agreement of Purchase and Sale carefully: the closing arrangement affects the funds due if the buyer doesn’t qualify.

Assignment sales need particular attention. For enhanced-rebate eligibility, both the original builder agreement and assignment agreement must fall within the April 1, 2026, through March 31, 2027 window. The original Agreement of Purchase and Sale date determines eligibility, rather than the later assignment date alone.

Builder Claims and Applications

When a rebate is assigned, the builder often applies on the purchaser’s behalf after closing. Understand which rebate proceeds are assigned and how the purchase price accounts for them. Assignment doesn’t remove the buyer’s responsibility to meet eligibility conditions. If the claim is ineligible, the expected relief may not be available.

Buyers who claim directly must file within two years of closing. Keep original invoices and application records. The Canada Revenue Agency accepts original invoices in the claimant’s or co-owners’ names as proof, not photocopies, payment slips, account statements, estimates or quotes. Retain supporting documents for six years in case they’re requested.

Rental homes follow separate rules from primary residences. For one rental-property category, construction must have begun before March 31, 2026; another rental stream requires construction to begin by March 31, 2027, with substantial completion by December 31, 2029. An assignment purchase intended as a rental must meet the applicable category’s conditions, not simply the owner-occupier test.

Assignment premiums also affect the closing calculation. HST on a C$50,000 assignment premium is approximately C$6,500, and the new rebate doesn’t cover that tax. Separate the premium from the home’s base price when reviewing the agreement and estimating the maximum rebate relief.

2026 Enhanced Ontario HST rebate amounts and price thresholds

The enhanced housing program combines federal and provincial relief for eligible new homes. For qualifying homes valued up to C$1 million, the temporary rebate can cover the full 13% HST, up to C$130,000. Its amount changes at higher price thresholds, so the home’s value and purchase agreement date both matter.

For homes valued above C$1 million and up to C$1.5 million, eligible buyers may receive a flat combined rebate of C$130,000. Between C$1.5 million and C$1.85 million, the enhanced rebate phases out based on purchase price. At C$1.85 million or more, the enhanced Ontario rebate isn’t available, though the existing provincial rebate may still apply.

• Up to C$1 million: the enhanced rebate can include up to C$80,000 for the provincial portion and up to C$50,000 for the federal portion.
• Above C$1 million to C$1.5 million: the combined enhanced rebate is a flat C$130,000 for eligible homes.
• Above C$1.5 million to below C$1.85 million: the enhanced amount reduces as the purchase price rises.
• C$1.85 million or more: the existing Ontario provincial housing rebate of up to C$24,000 may remain available.

The existing federal GST/HST new housing rebate is separate. It refunds 36% of the 5% GST, up to C$6,300. Ontario’s standard provincial rebate may provide up to C$24,000 when its conditions are met. Together, the standard federal and provincial rebates can return about C$30,300 at the lower end of the home-price range.

For the enhanced program, builder purchase agreements generally must be entered into from April 1, 2026, through March 31, 2027. The combined provincial rebates cannot exceed the lesser of C$80,000 and the provincial HST payable. This limit applies to the provincial portion, not the federal top-up.

Compare the home’s value, agreement date and potential rebate before assessing the closing amount. Explore available property listings as you consider your next purchase.

Pinnacle Realty: Residential Listing Services

Pinnacle Realty supports buyers and sellers with Buyer Agency Services and Residential Listing Services. If you’re comparing newly built homes, its Pre-Construction Property Sales and Condominium Sales services can help you explore options and consider how each purchase fits your plans.

After reviewing rebate eligibility, agreement dates and price thresholds, a real estate professional can help assess the property and purchase terms. This guidance is separate from determining tax eligibility or submitting a rebate claim. Keep those questions distinct as you plan your purchase or sale.

For a considered approach to buying or selling in Brampton and the GTA, contact Pinnacle Realty to discuss your plans.

Make your next move with clarity

Buying or selling a home is more than a transaction; it’s a meaningful transition. As you plan your next step, keep tax questions distinct from property decisions: the HST rebate on new homes in Ontario concerns eligibility and the claim, while choosing a home or preparing to sell calls for a clear view of your goals and circumstances.

Pinnacle Realty offers Buyer Agency Services for buyers weighing their options, Condominium Sales for condo-focused plans, and Residential Listing Services for homeowners preparing to sell. The next step could be exploring properties, discussing your buying plans or considering how to position your home for sale.

For a considered conversation about your real estate plans, contact Pinnacle Realty. Move forward with greater clarity and confidence.

Frequently Asked Questions

Do I qualify for the HST rebate?

The HST rebate on new homes in Ontario may apply if a new or substantially renovated home meets the rules for the rebate stream being claimed. Eligibility can depend on whether you bought from a builder or built the home yourself, the agreement or construction dates, the home’s value, and whether it will be a primary residence or rental. A resale home doesn’t qualify because its sale isn’t subject to HST.

How much can you claim under the standard rebate?

The standard federal GST/HST new housing rebate can refund up to C$6,300, while Ontario’s standard provincial rebate may provide up to C$24,000 when its conditions are met. These are separate portions of the tax relief, and the amount depends on the home and claim details. For a particular purchase, distinguish these existing rebates from the temporary enhanced program’s different price bands.

Quick Answer: What Is the 2026 Ontario HST Rebate?

The 2026 enhanced program may provide eligible buyers with up to C$130,000 in combined federal and provincial relief. For qualifying homes valued up to C$1 million, it can cover the full 13% HST. The program is described as proposed and pending legislation, with a builder-purchase agreement window from April 1, 2026, through March 31, 2027. Price and eligibility rules affect the amount.

What if I'm buying with a co-purchaser who already owns a home?

A co-purchaser’s ownership history can affect the claim, especially if the purchase relies on first-time buyer eligibility. Ownership shares and each buyer’s status matter; even a 1% title share held by a non-qualifying co-owner may void the entire Ontario rebate claim. Before signing, establish who will hold title and whether every co-owner meets the rules for the rebate being claimed.

Can I combine the rebate with other home-buying incentives?

Some relief may overlap, but the amounts don’t necessarily stack in full. Ontario’s new home affordability payment may provide eligible recipients with up to C$50,000, reduced by the federal portion of any GST/HST new housing rebate or first-time home buyers’ rebate they’re entitled to receive. Treat each program separately in your purchase planning, since eligibility and offsets affect the combined benefit.

Do I get the HST rebate automatically?

No, the HST rebate on new homes in Ontario isn’t automatic in every transaction. At closing, an eligible buyer may assign the applicable rebate to the builder, who often claims it on the buyer’s behalf. If you pay the full HST and claim directly, you must submit an application to the Canada Revenue Agency within two years of closing. Keep original invoices and supporting records for the claim.