Ontario's HST Rebate on New Homes: The Complete 2026 Guide

By the Real Estate team at Simplyclose Law. Updated June 23, 2026.

Short answer. Ontario's enhanced HST rebate is now law and applies to agreements of purchase and sale signed between April 1, 2026 and March 31, 2027. An eligible individual buying or building a new home as a primary residence can recover up to $130,000 of the 13% HST. The regulations are retroactive to April 1, 2026, and the CRA expects the updated claim forms by mid-July 2026.

This is a full guide, written to be read start to finish or skimmed by section. It covers what the rebate is, how we got here, who qualifies, how much you can recover, the deadlines that matter, and how the money actually reaches you. If you are a buyer, a builder, or a realtor, there is a section below written specifically for you.

Ontario HST Rebate on New Homes at a Glance

• What it is. A temporary enhancement to Ontario's New Housing Rebate that relieves the full 13% HST on eligible new homes, up to $130,000.
• Who it is for. Individuals buying or building a new home as their primary residence. A separate version exists for new rental housing.
• How much. Up to $130,000 on a home valued up to $1.5 million, declining to $24,000 by $1.85 million.
• The window. The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027.
• Status. Now law, retroactive to April 1, 2026. The CRA expects the updated claim forms by mid-July 2026.
• If you already closed. You have not missed it. You claim once the forms are released.

Timeline: How Ontario's New-Home HST Rebate Became Law

The relief was built in stages over roughly eight months. The milestones that matter:

• October 28, 2025. Ontario first signals HST relief for first-time buyers on new homes.
• March 25, 2026. Ontario announces the broad expansion to all eligible buyers, up to $130,000 on the full 13%.
• March 30, 2026. Ontario and the federal government sign the Canada-Ontario Partnership to Build, committing $875 million to fund the federal share.
• May 12, 2026. Ontario's enabling law, Bill 114, receives Royal Assent (Statutes of Ontario, 2026, Chapter 5).
• June 12, 2026. The federal regulations that deliver the 8% enhancement are made (P.C. 2026-610).
• June 18, 2026. Federal Bill C-26 receives Royal Assent, providing the federal funding.
• June 22, 2026. Ontario Regulation 196/26 is made, delivering the 5% top-up.
• June 23, 2026. The CRA publishes Notice 346, setting out how the rebate is administered.
• Mid-July 2026. The date the CRA expects the updated claim forms to be available.

Both regulations are deemed to have come into force on April 1, 2026. Full links to every source are at the end of this guide.

What Is the Ontario Enhanced HST Rebate?

Ontario's HST is 13%. It is made up of an 8% provincial portion and a 5% federal portion. The enhanced rebate relieves both, in two layers.

The first layer is the enhanced Ontario New Housing Rebate. It returns up to $80,000 of the 8% provincial portion.

The second layer is the 5% Ontario top-up, funded by Ontario and paid by the province. It returns up to $50,000 of the federal portion.

Add the two layers and the program covers the full 13% of the HST, up to a combined $130,000 on a qualifying home.

One point to be clear on. This is a rebate, not an exemption. HST is still charged on the sale. The rebate refunds it, up to the cap.

How Much Is the HST Rebate on a New Home in Ontario?

The amount depends on the price of the home.

A few real figures show the shape of it. A $700,000 home recovers about $91,000. A $1.2 million home recovers the full $130,000. A $1.7 million home recovers about $69,500. At $1.85 million and above, the figure is $24,000.

To run an exact number on a specific price, including how the rebate changes the figure on the agreement, use our Ontario HST New Housing Rebate Calculator.

Who Qualifies for the Ontario HST New Housing Rebate?

The enhanced rebate follows the rules of Ontario's existing New Housing Rebate, with a few added conditions. Work through these.

You are an individual. The rebate is for individuals, not corporations or partnerships. Every co-owner has to be an individual.

The home is a primary residence. It has to be intended as the primary place of residence of you or a relation. A pure investment purchase does not qualify for this rebate, though new rental housing has its own version, covered below.

Your agreement is dated in the window. The agreement of purchase and sale has to be signed between April 1, 2026 and March 31, 2027.

The home is the right type. Eligible homes include a detached or semi-detached house, a townhouse or rowhouse, a condominium unit, a duplex, a unit in a co-operative housing corporation, and a mobile or floating home.

Construction meets the timing rules. For a home bought from a builder, construction has to begin on or before December 31, 2028 and be substantially complete on or before December 31, 2031. Owner-built homes run on a tighter clock, covered in the fine print below.

If all of those are true, the dollar figure you can recover is set by the price bands in the table above, up to $130,000.

Key 2026 HST Rebate Dates and Deadlines

• April 1, 2026 to March 31, 2027. The window for signing the agreement of purchase and sale.
• Mid-July 2026. When the CRA expects the updated claim forms to be available.
• December 31, 2028. The latest start of construction for a home purchased from a builder.
• December 31, 2031. The latest substantial completion for a home purchased from a builder.
• December 31, 2032. The backstop date by which the HST has to become payable.

Because the regulations reach back to April 1, 2026, a buyer who already closed on an eligible home earlier this year has not missed anything. The entitlement accrues from the date of the agreement.

How to Claim the HST Rebate on a New Home

There are two paths, and which one applies comes down to timing.

The builder credits it at closing. Once the CRA forms are available, expected by mid-July 2026, you can assign the rebate to the builder, and the builder credits both the 8% and the 5% against the price at closing. You never front that cash.

You claim it from the CRA. If you close before the forms are out, you pay the full HST on closing and apply afterward to recover it. There is no separate Ontario application. The updated CRA form carries your consent to share contact, banking, and rebate information with Ontario, and the province pays the 5% top-up after the federal 8% rebate is assessed.

The forms involved are Form GST190, Form RC7190-ON, and Guide RC4028, all of which the CRA is updating.

How Your Agreement of Purchase and Sale Affects the Rebate

This is the part buyers most often overlook. The rebate does not float free of your contract. The agreement of purchase and sale sets out who claims the rebate, whether you assign it to the builder in exchange for a credit, and how the price is stated. Many builder agreements already assume the buyer will assign the rebate, and the price on the contract reflects that assumption. We break down that "inclusive of rebate" pricing on a new build in a companion guide.

Before you sign, the agreement should be reviewed so you know exactly how the rebate is being treated, whether the credit is built into your price, and what happens if a closing falls before the forms are released. Getting this wrong can cost a buyer the full benefit. This is the single most valuable point on which to get advice.

What the HST Rebate Means for Buyers, Builders, and Realtors

If you are a buyer. Confirm your agreement falls in the April 1, 2026 to March 31, 2027 window and that the home will be your primary residence. If you are closing before the forms are out, plan to fund the full HST on closing and recover it afterward. If you already closed this spring, you have not lost the rebate. The rules are retroactive to April 1, 2026, and once the CRA releases the updated forms, expected mid-July 2026, you apply and recover it. Keep your agreement, your closing documents, and your statement of adjustments.

If you are a builder. Watch the cash flow on the two portions, because they behave differently. The 8% comes straight off your remittance on your GST/HST return. The 5% does not. You cannot deduct it. If you credit it at closing, you front it to the buyer and Ontario reimburses you separately, only after the Ontario rebate is assessed. Build that gap into your numbers, and make sure your agreements handle the rebate assignment cleanly.

If you are a realtor. The retroactive-to-April-1 point is the one most clients will not know yet, and it is a reason to revisit deals that already closed this spring. For new agreements, the March 31, 2027 signing deadline is the date to keep in front of buyers considering a new build, and the rebate treatment in the agreement is worth flagging to clients before they sign.

HST Rebate for New Rental Properties in Ontario

The program is not only for owner-occupiers. A landlord building or buying a new long-term rental property may qualify for an enhanced New Residential Rental Property Rebate of up to $80,000 per unit, on the same April 1, 2026 to March 31, 2027 timing.

Two differences matter. This rebate cannot be credited by a builder. The landlord always applies to the CRA directly. And it is keyed to long-term residential rental use, not resale.

Ontario HST Rebate Rules Most People Miss

The old $24,000 rebate has not been removed. This is a common point of confusion. Ontario's existing New Housing Rebate still exists. It remains the floor for homes at or above $1.85 million, and it is what continues once this temporary program ends. The enhanced rebate is a temporary increase sitting on top of the existing one, not a replacement.

Owner-built homes are on a much tighter clock. For a purchase from a builder, you only need the agreement signed by March 31, 2027, and construction can begin as late as the end of 2028. For an owner-built home, construction itself has to begin between April 1, 2026 and March 31, 2027 and be substantially complete by the end of 2029. For owner-built, March 31, 2027 is a shovels-in-the-ground deadline, not a signing deadline.

Assignments have to clear two dates, not one. If you are buying or selling an assignment of a new home, the enhanced rebate is available only if both the original agreement with the builder and the assignment agreement were signed between April 1, 2026 and March 31, 2027. An older builder contract assigned in 2026 does not qualify.

The 5% cannot always be credited by a builder. The builder-credit route for the top-up is available on a home bought from a builder. Owner-built homes and certain other situations deal with Ontario directly for the 5%, and it cannot be credited at closing.

First-time buyers have to sequence their claims. Where you qualify for the federal first-time home buyers' GST rebate, that rebate is claimed first, before the Ontario enhanced rebate.

Old agreements cannot be retrofitted. The regulations include anti-avoidance rules. An agreement signed before April 2026 that is varied, assigned, or cancelled and re-signed to land inside the eligible window is treated as still falling before April 2026, unless there is a genuine non-rebate reason for the change.

Speak With an Ontario Real Estate Lawyer

Every new-build file turns on its own facts, and on this program the timing and the wording of the agreement decide whether the benefit lands. If you are a buyer, a builder, or a realtor with a question on a specific transaction, our real estate team can confirm eligibility, review how the rebate is handled in the agreement, and structure the closing so nothing is left on the table.

Reach out to our real estate team at 519-997-3775 or hello@simplyclose.ca. We act for buyers and builders across Ontario.

Official Sources and Legislation

• Regulations Amending the New Harmonized Value-Added Tax System Regulations, No. 2 (Ontario), P.C. 2026-610 (federal, made June 12, 2026)
• Ontario Regulation 196/26, Residential Property Rebates Under Section 51.2 of the Act (made June 22, 2026)
• CRA Notice 346, Ontario Enhanced New Housing Rebate (June 23, 2026)
• 2026 Ontario Budget backgrounder, Enhancing HST Relief on New Homes
• Bill 114, HST Relief Implementation Act (Residential Property Rebates), 2026 (Ontario, Royal Assent May 12, 2026)
• Bill C-26, Improving Housing Supply Act (federal, Royal Assent June 18, 2026) and the Department of Finance Canada announcement
• Ontario news release, Expanding the HST Rebate to Lower the Cost of New Homes (March 25, 2026)

Common questions

Is the Ontario enhanced HST rebate now law?

Yes. The federal and Ontario regulations were made in June 2026 and are in force, retroactive to April 1, 2026.

How much can I get back from the Ontario HST rebate on a new home?

Up to $130,000 on a qualifying new home valued up to $1.5 million, declining to $24,000 by $1.85 million.

When do I have to sign my agreement to qualify?

Between April 1, 2026 and March 31, 2027.

Can the builder take the HST rebate off the price at closing?

Yes, once the CRA forms are available, expected by mid-July 2026. Before then, you pay the HST and claim it back from the CRA.

I already closed on a new home this spring. Did I miss the rebate?

No. The rules are retroactive to April 1, 2026. You apply and recover it once the forms are released.

Was the old $24,000 Ontario new housing rebate cancelled?

No. It remains as the floor for homes at or above $1.85 million and continues after this temporary program ends.

I am buying an assignment. Do I qualify for the HST rebate?

Only if both the original builder agreement and the assignment agreement were signed between April 1, 2026 and March 31, 2027.

Does the rebate apply to a custom home I am building myself?

Yes, on tighter timing. Construction has to begin between April 1, 2026 and March 31, 2027 and be substantially complete by the end of 2029.

Does the rebate apply to a rental property?

A separate rebate of up to $80,000 per unit may be available for new long-term rental housing, claimed from the CRA directly.

This article is current as of June 23, 2026 and is provided for general information. It is not legal or tax advice and does not create a solicitor-client relationship. The program is administered by the Canada Revenue Agency and the Ontario Ministry of Finance, and the governing law is found in the regulations linked above. Confirm your own situation with a qualified professional before relying on any figure or deadline.