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Now law · Royal Assent May 12, 2026

Ontario HST New Housing
Rebate Calculator

See exactly how the expanded rebate changes the math on your new-build deal.

🏡Ontario expanded the HST rebate on new homes.

For agreements signed between April 1, 2026 and March 31, 2027, the rebate on new-build homes gets a major upgrade - potentially putting up to $130,000 back into the deal. This tool shows how it worked before, how it works now, and what the savings actually look like at any price point.

Read the official Ontario news release

$100K$3M
  • The SPNR is the price on the APS. It already reflects the builder’s assumption that the buyer will assign the HST rebate on closing. The actual HST-inclusive value of the home is $774,000.00 - the buyer just never sees that number because the rebate offsets $24,000.00 of it.
  • On closing, the buyer assigns their Ontario HST new housing rebate entitlement to the builder. The buyer never receives a rebate cheque.
  • The builder collects $750,000.00 from the buyer and receives $24,000.00 directly from CRA - total inflow of $774,000.00.
  • HST is calculated on the full pre-tax consideration of $684,955.75 - not on $750,000.00 ÷ 1.13. The builder remits $89,044.25 to CRA.
  • This calculation follows CRA Info Sheet GI-085.
  • Builder nets: $750,000.00 + $24,000.00 − $89,044.25 = $684,955.75.
Pre-tax consideration: $774,000.00 ÷ 1.13 = $684,955.75
Stated Price Net of Rebate (SPNR) - buyer pays on closing$750,000.00
+ Old rebate assigned to builder+$24,000.00
Total transaction value (HST-inclusive)$774,000.00
Pre-tax consideration (Formula 4)$684,955.75
HST at 13%$89,044.25
Builder receives from buyer$750,000.00
Builder receives rebate from CRA$24,000.00
Builder total receipts$774,000.00
Builder remits HST to CRA−$89,044.25
Builder nets$684,955.75
Buyer pays on closing$750,000.00
Enhanced rebate (100% of HST on pre-tax consideration)$89,044.25
Less old rebate already assigned to builder−$24,000.00
Assumed buyer savings$65,044.25
  • Under the expanded rules, the rebate on this deal becomes $89,044.25 - computed as 100% of the HST on the pre-tax consideration ($684,955.75) from Step 1.
  • The builder keeps the $24,000.00 it was already receiving (baked into the SPNR in Step 1). The remaining $65,044.25 ($89,044.25 − $24,000.00) is new money created by the enhanced rebate - we assume it goes to the buyer.

Assumed buyer savings

$65,044.25

New price on closing

$684,955.75

was $750,000.00

Purchase Price (exclusive of HST, net of rebates assigned to builder)$684,955.75
Federal portion of HST (5%)$34,247.79
Provincial portion of HST (8%)$54,796.46
Total HST on Purchase Price$89,044.25
Total effective purchase price$774,000.00
Less HST Rebate Credit to Buyer (100% of HST)−$89,044.25
Amount paid by Buyer on Closing$684,955.75
Builder Remits HST−$89,044.25
Builder Receives Rebate from CRA$89,044.25
Net Amount Received by Builder$684,955.75
  • The buyer keeps the full assumed savings, so their price on closing drops by $65,044.25 - from $750,000.00 to $684,955.75.
  • The transaction is still subject to HST. The new rebate ($89,044.25) assigned by the buyer offsets the builder’s HST obligation ($89,044.25) - the two amounts are identical, so they net to zero.
  • The builder nets $684,955.75 - exactly the same as the $684,955.75 it would have netted under the old rules. All of the new money created by the enhanced rebate flows to the buyer.

How the rebate is paid right now. Ontario’s enabling legislation - Bill 114, the HST Relief Implementation Act (Residential Property Rebates), 2026 - received Royal Assent on May 12, 2026. But the federal HST regulations needed to credit the enhanced rebate at closing have not been made yet. Until they are, builders generally cannot credit the enhanced rebate on closing: the buyer pays the full HST at closing and applies to the CRA directly afterward to recover it. See “What if the buyer claims the rebate from CRA directly?” below for how that path works.

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Disclaimer

This calculator is for educational and illustrative purposes only and does not constitute legal, tax, or financial advice. The calculations are estimates based on publicly available information from the 2026 Ontario Budget, the Ministry of Finance backgrounder (updated May 5, 2026), and Bill 114, which received Royal Assent on May 12, 2026.

The enhanced rebate for the 8% provincial portion of the HST is to be implemented through federal HST regulations that have not yet been made. CRA forms, filing procedures, and rebate timelines for the enhanced rebate have not yet been published. All figures should be independently verified by a qualified professional before being relied upon for any transaction.

Use at your own risk. Simplyclose Law Professional Corporation accepts no liability for any decisions made based on this tool.

Prepared by Simplyclose Law Professional Corporation.

HST and associated rebates are administered by the Canada Revenue Agency.