What HST rebates are available when buying a new home in Ontario?

As of September 16, 2026, five programs are in effect: the federal GST New Housing Rebate (up to $6,300, all buyers), the Ontario provincial HST New Housing Rebate (up to $24,000, all buyers), the federal First-Time Buyer GST Rebate under Bill C-4 (up to $50,000), the Ontario First-Time Buyer provincial HST rebate (up to $80,000), and the Ontario Enhanced HST Rebate from the 2026 Budget (combined savings of up to $130,000, all buyers).

How much can a first-time buyer save on HST on a new home in Ontario?

Combined, the federal First-Time Buyer GST Rebate (up to $50,000) and the Ontario First-Time Buyer provincial rebate (up to $80,000) can save up to $130,000. The full GST is eliminated on homes up to $1,000,000, with a sliding scale between $1M and $1.5M. The agreement of purchase and sale must be signed on or after March 20, 2025 and before January 1, 2031.

What is the Ontario Enhanced HST Rebate from the 2026 Budget?

A temporary one-year enhancement open to all buyers, not just first-time buyers. It rebates the full 8% provincial HST (up to $80,000) on homes up to $1.5M, declining to $24,000 between $1.5M and $1.85M. Ontario also pays a top-up equal to the 5% federal portion, up to $50,000, reduced by any federal rebate received. The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027.

Who counts as a first-time home buyer for the HST rebate?

At the time you take ownership, you must be 18 or older and a Canadian citizen or permanent resident, and neither you nor your spouse or common-law partner can have owned and lived in a home anywhere in the world during the current calendar year or the four preceding calendar years. The rebate is once per lifetime.

Do rental properties qualify for the new housing HST rebate in Ontario?

The existing rebates have a rental equivalent (the NRRPR) with the same dollar values, but you pay full HST upfront and apply to CRA after closing, and the first occupant must be a tenant on a one-year lease. The first-time buyer rebates have no rental equivalent. The 2026 Ontario Enhanced rebate includes rental properties through a separate enhanced rental rebate (ENRRPR).

Buying new in Ontario

Ontario New Housing HST Rebates

A plain-language guide to what you can save when buying new housing.

Current as of September 16, 2026

At a glance

Rebate	Who qualifies	Max savings	Status
Existing Federal GST New Housing Rebate	All buyers	Up to $6,300	In effect
Existing Ontario Provincial HST New Housing Rebate	All buyers	Up to $24,000	In effect
Federal First-Time Buyer GST Rebate (Bill C-4)	First-time buyers only	Up to $50,000	In effect
Ontario First-Time Buyer Provincial HST Rebate	First-time buyers only	Up to $80,000	In effect
Ontario Enhanced HST Rebate (2026 Budget)	All buyers	Up to $130,000	In effect

The five rebate programs

Existing Federal GST New Housing Rebate

All buyersIn effect

What it is: A partial rebate of the federal GST (5%) you pay when buying a new or substantially renovated home. This program has been around since HST was introduced in Ontario in 2010.
Savings: Up to $6,300, which is 36% of the GST paid. Full rebate on homes up to $350,000. Phases out between $350,000 and $450,000. No federal rebate above $450,000.
Key condition: The home must be your primary residence (or a close relative's).
How it works: In most new housing transactions, the builder includes the rebate in the purchase price and claims it from CRA on your behalf.

Existing Ontario Provincial HST New Housing Rebate

All buyersIn effect

What it is: A partial rebate of the provincial portion of the HST (8%) you pay when buying a new or substantially renovated home.
Savings: Up to $24,000, which is 75% of the provincial HST on the first $400,000 of the purchase price. Unlike the federal rebate, this is available regardless of the total purchase price.
Key condition: The home must be your primary residence (or a close relative's).
How it works: Same as the federal rebate: typically included in the builder's purchase price and claimed from CRA on your behalf.

Federal First-Time Buyer GST Rebate

First-time buyers onlyIn effect

What it is: A federal rebate that eliminates or significantly reduces the 5% GST on new homes for first-time buyers. Became law on March 12, 2026 (Bill C-4).
Savings: Homes up to $1,000,000: full GST eliminated, save up to $50,000

Homes $1M to $1.5M: partial rebate on a sliding scale

Homes above $1.5M: no rebate
APS signed: On or after March 20, 2025 and before January 1, 2031.
Construction: Must begin before 2031 and be substantially completed before 2036.
How to claim: Closings after March 12, 2026: the builder can credit the rebate on your statement of adjustments.

Closings between March 20, 2025 and March 12, 2026: apply directly to CRA.
Watch out: This rebate is once per lifetime. If your spouse or common-law partner already claimed it, you cannot. Assignment sales don't qualify if the original APS was signed before March 20, 2025. Cancelling and re-signing with the same builder to qualify is also blocked.

Ontario First-Time Buyer Provincial Rebate

First-time buyers onlyIn effect

What it is: Ontario's matching program to rebate the full 8% provincial HST for first-time buyers. Announced October 28, 2025. Now law, retroactive to March 20, 2025.
Savings: Up to $80,000 (provincial portion). Combined with the federal first-time buyer rebate: up to $130,000.
APS signed: On or after March 20, 2025 and before January 1, 2031.
Eligibility: Same rules as the federal first-time buyer rebate (#3). If you qualify federally, you generally qualify here too.
Already closed?: If your APS was signed on or after March 20, 2025, you can apply directly to CRA for this rebate. You generally have two years from taking ownership to apply.

Ontario Enhanced HST Rebate (2026 Budget)

All buyersIn effect

What it is: A temporary, one-year enhancement to the existing Ontario HST rebate. Open to all buyers, not just first-time buyers. Announced in the March 26, 2026 Ontario Budget. Now law, effective April 1, 2026.
Savings: Homes up to $1M: full 8% provincial HST rebated, up to $80,000

Homes $1M to $1.5M: maximum $80,000 maintained

Homes $1.5M to $1.85M: declining rebate (down to $24,000)

Homes above $1.85M: existing $24,000 rebate applies

Ontario also pays a separate top-up equal to the 5% federal portion, up to $50,000 (the Ontario New Home Affordability Payment). It is reduced by any federal rebate you receive under #1 or #3. Combined savings of up to $130,000.
APS window: April 1, 2026 to March 31, 2027 (one year only).
Construction: Must begin by December 31, 2028. Substantially completed by December 31, 2031.
Qualifying use: Primary residence (yours or a relation's). Long-term rental properties qualify under a separate enhanced rental rebate (see rental properties below).
How to claim: The builder can credit the rebate on your statement of adjustments, or you apply to CRA after closing. CRA expects to start processing claims in fall 2026. The top-up is paid separately by Ontario.
Watch out: Assignment sales only qualify if both the original APS and the assignment were signed in the APS window. Amending an APS signed before April 1, 2026, or cancelling and re-signing with the same builder, does not qualify.
Important: If you're a first-time buyer who qualifies for both this and the Ontario first-time buyer rebate (#4), you can claim either or both, but total provincial relief is capped at $80,000.

Key definitions and fine print

What counts as a "First-Time Home Buyer"?

This is a legal definition. At the time you take ownership, all of the following must be true:

You are 18+, and a Canadian citizen or permanent resident.
Neither you nor your spouse/common-law partner have owned and lived in a home (anywhere in the world) during the current calendar year or the four preceding calendar years.

This is once per lifetime. If your spouse or partner already claimed it, you are not eligible.

What counts as a "Relation"?

Some rebates apply if the home is for a relation's primary residence. Under the Income Tax Act, this includes: parents, children, siblings (blood); your spouse or anyone connected to them by blood (marriage); your common-law partner or anyone connected to them by blood; and adopted children. For the existing rebates (#1 and #2) and the Ontario enhanced rebate (#5), former spouses and former common-law partners also qualify.

Not included: aunts, uncles, nieces, nephews, cousins, friends. If any person on title is not a qualifying relation and does not live in the home, the entire rebate can be denied.

What about rental properties?

Programs 1 & 2 (existing rebates): Not directly, but the NRRPR provides the same dollar values. Key difference: you pay full HST upfront, apply to CRA yourself post-closing, and the first occupant must be a tenant with a one-year lease.
Programs 3 & 4 (first-time buyer rebates): Primary residence only. No rental equivalent.
Program 5 (Ontario Enhanced, 2026 Budget): Includes rental properties through a separate enhanced rental rebate (ENRRPR). CRA guidance on it is expected by October 2026.

Filing under the wrong program (NHR vs. NRRPR) can result in the rebate being denied entirely. Consult your lawyer before closing.

A note about builder pricing

Builders can now credit these rebates on closing. But if one is credited and you don't actually qualify, you will owe it back to CRA. Confirm your eligibility with your lawyer before signing.

Disclaimer: This guide is for general information only and does not constitute legal, tax, or financial advice. Rebate programs and eligibility rules may change. Always consult a qualified lawyer or tax professional before entering into an agreement of purchase and sale.

Guide prepared by

Zachary Soccio-Marandola

Real Estate Lawyer

(647) 797-6881
zachary@socciomarandola.com
www.socciomarandola.com