# Ontario HST Rebate Expansion (2026): Save Up to $130,000 on Your New Home
If you're planning to buy or build a new home in Ontario, this is one of the biggest affordability announcements in recent years.
The Ontario government, in partnership with the federal government, has introduced a temporary expansion of the HST rebate, allowing buyers to recover up to $130,000 in tax savings.
For buyers in Toronto, Brampton, Mississauga, and across the GTA, this could dramatically reduce the cost of new construction homes.
ℹ️ Did You Know?
This expanded rebate applies to agreements signed between April 1, 2026 and March 31, 2027, making timing a critical factor for buyers considering new construction or pre-construction purchases.
What Is the HST Rebate?
When purchasing a newly built home in Ontario, buyers pay 13% HST, which includes:
On higher-priced homes, this tax can be substantial.
| Home Price | HST (13%) |
|---|---|
| $700,000 | $91,000 |
| $1,000,000 | $130,000 |
| $1,200,000 | $156,000 |
Historically, buyers only received partial rebates, especially in high-priced markets like the GTA.
The new policy changes that significantly.
How the New HST Rebate Works
Under the expanded rebate program:
| Home Price Range | Maximum Rebate |
|---|---|
| Up to $1,000,000 | Up to $130,000 (Full HST) |
| $1,000,000 – $1,500,000 | $130,000 (Maintained) |
| $1,500,000 – $1,850,000 | Gradually Reduced |
| Above $1,850,000 | $24,000 (Standard rebate) |
This means many buyers can now recover 100% of the HST paid on their purchase.
Real Savings Example
| Scenario | Before (Old System) | After (New Program) |
|---|---|---|
| $1M Home | ~$24,000 rebate | $130,000 rebate |
| $1.2M Home | ~$24,000 rebate | $130,000 rebate |
| $1.7M Home | ~$24,000 rebate | Reduced rebate (~$69K) |
This represents a massive increase in affordability, especially for mid-range buyers.
Who Qualifies for the Rebate?
To qualify, buyers must:
For rental properties:
⚠️ Warning
Eligibility details are subject to final federal legislation and CRA administration. Always confirm details with a lawyer or tax professional before proceeding.
Why This Policy Was Introduced
Ontario introduced this measure to:
The government estimates:
This is both a buyer incentive and economic stimulus program.
Federal Government’s Role
This rebate expansion depends on federal participation.
Ontario’s contribution alone is estimated at:
> $1.4 billion in tax relief
This makes it a joint federal-provincial initiative.
Impact on GTA Buyers
In markets like:
Most new homes fall within the $800K–$1.5M range.
Previously:
Now:
This significantly improves:
Market Impact
This policy is expected to:
Buyers entering early may benefit most before:
Common Mistakes to Avoid
Mistakes can cost:
> Up to $130,000 in lost savings
What You Should Do Next
Timing and structure are critical.
Final Thoughts
Ontario’s expanded HST rebate is a game-changing opportunity for home buyers.
With potential savings of up to $130,000, this program significantly improves affordability—especially in high-cost markets like the GTA.
However, this is a temporary program, and buyers must act within the eligibility window to benefit.
Planning to buy a new construction home in the GTA?
Team Shailesh helps buyers navigate HST rebates, builder pricing, and closing costs across Toronto, Brampton, Mississauga, and surrounding areas—ensuring you maximize savings and make confident decisions.
Shailesh Patel
Licensed Real Estate Broker | Team Shailesh | RE/MAX
With deep expertise in new construction and investment properties across the Greater Toronto Area, Shailesh Patel helps buyers understand complex pricing structures, including HST rebates, builder incentives, and closing costs.
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