New homes in Ontario carry 13% HST, which on a $1 million new build is $130,000. Resale homes don't. In 2026, a temporary enhanced rebate can return much or all of that HST for eligible buyers of new homes. If you are considering a new build in Vaughan, King City, Richmond Hill or Oakville, it's worth understanding.
Why HST matters on new homes
HST generally applies to newly built or substantially renovated homes bought from a builder. Builder prices are often quoted with HST included and the standard rebates assigned back to the builder, so read the agreement closely to see what's included.
The regular rebates
Before 2026, the main relief was the Ontario new housing rebate, worth up to $24,000 on the provincial portion of HST, plus a smaller federal rebate for lower-priced homes. Since 2025, eligible first-time buyers can also claim a federal rebate of up to $50,000 on new homes priced up to $1 million, phasing out up to $1.5 million.
Ontario's enhanced rebate for 2026–27
The 2026 Ontario Budget announced a temporary enhancement that applies to all eligible buyers, not just first-time buyers. According to the Toronto Regional Real Estate Board, the program came into effect after the CRA published guidance in June 2026. In summary:
- Up to $1 million: up to $130,000 combined (the 8% provincial portion up to $80,000, plus a 5% federal top-up up to $50,000)
- $1 million to $1.5 million: a flat $130,000 combined
- $1.5 million to $1.85 million: the rebate phases down
- Over $1.85 million: the enhanced rebate doesn't apply; the regular Ontario rebate of up to $24,000 remains
The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. The home must be a new or substantially renovated home bought from a builder, and it generally must be your primary residence. There are also construction start and completion deadlines.
What to check before you sign
- Is HST included in the price? And who receives the rebate: you, or the builder as a credit on closing?
- Agreement date. The signing date determines which rebate rules apply.
- Use of the home. Plan to live in it. Different rules apply to investors and rentals.
- Price thresholds. Upgrades and extras can push the price into a lower rebate band.
- Lawyer review. Have a real estate lawyer review the agreement during the cooling-off period, which is 10 days for new freehold homes and condos from a builder in Ontario.
New build or resale?
The enhanced rebate narrows the price gap between new and resale homes, but it isn't the only factor. New builds can take years to complete and may have closing adjustments and development charges. Resale homes offer established streets, mature trees and immediate possession. I help buyers compare both, with the full cost of each, before they decide.
Rebate rules are detailed and can change. Confirm your eligibility with your lawyer, the builder and the CRA before signing.
Common questions
How much HST rebate can I get on a new home in Ontario in 2026?
Under the enhanced program, up to $130,000 combined on homes up to $1.5 million, phasing down to $1.85 million, for agreements signed April 1, 2026 to March 31, 2027.
Do I have to be a first-time buyer?
Not for the enhanced 2026–27 rebate. It applies to all eligible buyers of a new home used as a primary residence.
Does HST apply to resale homes?
Generally no. HST applies to new and substantially renovated homes.
Alexey Kopeykin, Sales Representative, Zolo Realty Brokerage Inc. Published October 2026. General information, not legal or tax advice; confirm details for your situation.