Up to $130,000 Off a New Ontario Home, and the Window Closes March 2027

Ontario’s Enhanced New Housing Rebate rebates the 8% provincial portion of HST on eligible new homes, up to $80,000, with a further Ontario top-up equivalent to the 5% federal portion. It is tiered: a full rebate up to $1 million, a flat $80,000 between $1 million and $1.5 million, a partial rebate to $1.85 million, and $24,000 above that. The agreement of purchase and sale must be entered into between April 1, 2026 and March 31, 2027.

Last updated: August 2026

Up to $130,000

Combined provincial rebate and Ontario top-up

$1.0M to $1.5M

Still gets the full flat $80,000

March 31, 2027

Deadline to sign, not to close

There is currently up to $130,000 of HST relief available on a new home in
Ontario, and the window to sign closes on March 31, 2027.

I do not usually write about tax measures, because most of them are worth a few hundred dollars
and a lot of paperwork. This one is different, both in size and because it has an expiry date most
buyers are not aware of.

What was actually announced

The 2026 Ontario Budget, tabled March 26, 2026, introduced a temporary enhancement to the
provincial HST rebate on new housing. It rebates the 8 percent provincial portion of the HST on
eligible new and substantially renovated homes, and Ontario is providing further relief equivalent to
the 5 percent federal portion on top.

To be eligible, the agreement of purchase and sale must be entered into between
April 1, 2026 and March 31, 2027.

The part almost every article gets wrong

You will read that Ontario removed the HST on new homes under $1 million. That is roughly true and
badly incomplete, because the rebate is tiered, and the tiers matter enormously in the GTA
where very little is under a million.

Chart of the Ontario Enhanced New Housing Rebate tiers: a full rebate of the 8 percent provincial HST up to $1 million, a flat $80,000 between $1 million and $1.5 million, a partial rebate between $1.5 million and $1.85 million, and $24,000 above that.

From the Canada Revenue Agency’s own notice, the Ontario Enhanced New Housing Rebate provides:

Up to $1 million: a full 100 percent rebate of the 8 percent provincial part
of the HST.
$1 million to $1.5 million: a flat rebate of $80,000.
$1.5 million to $1.85 million: a partial rebate.
$1.85 million and above: the existing Ontario new housing rebate only, at a
flat $24,000.

Notice the second tier. A $1.4 million new build still attracts the full $80,000. In a market
where a new detached home in York Region routinely sits between $1.2 and $1.5 million, that band is
where a lot of GTA buyers actually live, and “under $1 million” headlines write them out of a benefit
they qualify for.

The $130,000 figure is two different reliefs stacked, and the second one has its own conditions

The maximum being quoted combines the Ontario Enhanced New Housing Rebate, worth up to $80,000 of the 8 percent provincial portion, with a separate Ontario top-up equivalent to a maximum of the 5 percent federal portion. They are not one rebate. The CRA also notes that where a buyer is eligible for the federal first-time home buyers’ GST rebate, that one should be claimed first, and that total rebates of the 8 percent provincial part cannot exceed the lesser of $80,000 and the provincial HST actually payable. So $130,000 is a ceiling for a specific situation, not a number everybody gets.

How you actually receive it

In most new home purchases the builder credits the rebate at closing rather than you applying for
it afterwards. The CRA has indicated builders can credit the Ontario ENHR and the 5 percent top-up at
closing once the forms are available, which it put at mid-July 2026.

That matters for two practical reasons. First, the number in your builder’s agreement may already
be net of a rebate, so read what the price actually includes. Second, if a builder is not crediting
it, ask why, and get your lawyer to confirm how and when you receive it instead.

The deadline is the signing date, not the closing date

This is the single thing to take away. Eligibility turns on when the agreement of purchase and
sale is entered into, and that window closes March 31, 2027. A pre-construction home closing in
2029 can still qualify if the agreement was signed inside the window. A home signed in April 2027
cannot, whenever it closes.

What I would actually do with this

If you are already considering a new build, stop treating the timing as neutral.
There is a real, dated financial difference between signing inside the window and after it.
Do not let it talk you into a bad purchase. A rebate on a home that does not
suit you, in a location you do not want, from a builder you have not checked, is still a bad
purchase. Tax relief is a discount, not a reason.
Get the rebate treatment in writing. Whether the price is net of it, who
claims it, and what happens if eligibility fails. This belongs in your lawyer’s review of the
builder agreement.
Check the interaction with any first-time buyer rebate you qualify for. The
CRA sets out the ordering, and getting it wrong can cost you part of the benefit.

A word on the resale comparison

HST is not charged on a normal resale home, so this does not shift the resale market directly.
What it does is change the relative price of new against resale for a defined period. If you were
weighing a new build against an existing home, the gap between them is temporarily smaller than it
was, and it will widen again after March 2027.

This is general information, not tax advice

This measure was introduced in a budget and is administered by the CRA, with conditions on
eligibility, ownership, occupancy and timing that I have summarised rather than exhausted. Confirm
your position with your real estate lawyer and an accountant before relying on any figure here.

Sources: Canada Revenue Agency GST/HST Notice 346, Ontario Enhanced New Housing Rebate, for the tier structure, the $80,000 maximum on the provincial portion, the 5% Ontario top-up, the interaction with the federal first-time home buyers’ rebate and the mid-July 2026 timing for builder credits at closing. 2026 Ontario Budget, tabled March 26, 2026, for the April 1, 2026 to March 31, 2027 eligibility window.

Where This Comes From

Written from Canada Revenue Agency GST/HST Notice 346 and the 2026 Ontario Budget tabled March 26, 2026. Eligibility conditions are summarised rather than exhausted; confirm your position with a lawyer and an accountant.

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Frequently Asked Questions

How much is the Ontario HST rebate on a new home?

The Ontario Enhanced New Housing Rebate returns up to $80,000 of the 8 per cent provincial part of the HST. A separate Ontario top-up equivalent to a maximum of the 5 per cent federal portion may also apply, which is where the widely quoted $130,000 maximum comes from.

What is the deadline for the Ontario new housing rebate?

The agreement of purchase and sale must be entered into between April 1, 2026 and March 31, 2027. Eligibility turns on the signing date rather than the closing date, so a pre-construction home closing years later can still qualify if the agreement was signed inside the window.

Does the rebate apply to homes over $1 million?

Yes, on a sliding basis. A flat $80,000 applies to homes valued between $1 million and $1.5 million, a partial rebate applies between $1.5 million and $1.85 million, and above $1.85 million the existing Ontario new housing rebate applies at a flat $24,000.

Do I claim the rebate or does the builder?

In most new home purchases the builder credits it at closing. CRA has indicated builders can credit the Ontario ENHR and the 5 per cent top-up at closing once the forms are available, which it put at mid-July 2026. Check whether your purchase price is already stated net of a rebate.

Does this apply to resale homes?

No. HST is not generally charged on an ordinary resale home, so the rebate applies to new and substantially renovated housing. Its practical effect is to narrow the gap between new and resale for a defined period.

Up to $130,000 Off a New Ontario Home, and the Window Closes March 2027

Up to $130,000 Off a New Ontario Home, and the Window Closes March 2027

What was actually announced

The part almost every article gets wrong

How you actually receive it

What I would actually do with this

Where This Comes From

Frequently Asked Questions

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