Ontario HST Rebate for New Builds: Eligibility 2026

If you have been watching new build prices in Ontario and thinking, wait, how is anyone supposed to swallow the HST on top of that… yeah. Same.

The province has announced a temporary expansion of the HST rebate for new homes, and it is a big one. The headline version is basically: remove the 13% HST cost for eligible buyers on new builds up to $1 million, for one year, starting April 1, 2026.

But, as always, the details matter. Timing matters even more. And if you are buying a pre construction home, the dates on your agreement and the builder schedule can decide whether you get the rebate or not.

So this is a plain English breakdown of what we know so far about the Ontario HST rebate expansion for 2026, who is eligible, how much it could be worth, and what to watch out for if you are buying a new build or a new condo.

Quick summary of the 2026 Ontario HST rebate expansion (what is being proposed)

Ontario says it plans to temporarily expand HST rebates on new home purchases to support a housing market that has, frankly, been stuck. The goal is to boost construction starts and reduce one of the biggest upfront costs for buyers.

Here is the proposed framework that has been publicly discussed:

• One year window to sign: purchase agreements signed between April 1, 2026 and March 31, 2027
• Maximum rebate: up to $130,000
• Full rebate target: new homes up to $1,000,000 could effectively have the 13% HST removed
• Partial rebate range: homes up to $1.5M could still qualify for the maximum $130K, then the benefit phases down until about $1.85M, where the rebate could be around $24K
• Federal and provincial coordination: Ontario says the full HST is covered through a partnership approach until legislation passes that covers the federal portion formally

Construction deadlines

• Construction must begin on or before December 31, 2028 for a primary residence
• Construction must begin on or before December 31, 2029 for a rental property

Also, this is expected to be included in an upcoming provincial budget, meaning the exact legal wording matters and could still shift.

This article is about eligibility and how to think about it so you can plan without getting blindsided later.

First, what is the HST on a new build in Ontario?

Ontario HST is 13% total, made up of:

• 5% federal portion
• 8% Ontario portion

New homes can already qualify for certain rebates, but they have caps and phase outs and a lot of rules that most people only discover when their lawyer sends the final statement of adjustments.

This 2026 measure is being described as “removing HST” for qualifying new builds, which in practical terms means a rebate large enough that the buyer does not end up carrying the full 13% cost, at least within the qualifying price ranges and eligibility rules.

What does “new build” mean here?

Usually, when governments talk about “new homes” for HST rebate purposes, they mean things like:

• newly constructed homes bought from a builder
• pre construction condos
• substantially renovated homes (in some cases)
• custom builds where you hire a builder and meet specific criteria

The announcement language is focused on new home purchases and the housing starts pipeline, so the safest assumption is it is aimed at builder sold new homes and new condos, not resale homes.

If you are buying resale, this is probably not your program.

Ontario HST rebate for new builds in 2026: eligibility requirements (the dates are everything)

Based on the publicly shared criteria, eligibility is going to come down to a few gating questions.

1) When did you sign the purchase agreement?

To qualify under the proposed expansion, the purchase agreement has to be signed between April 1, 2026 and March 31, 2027.

Not “you started negotiating then.” Not “you paid a deposit then.” Signed.

If you sign March 30, 2026, you likely miss it. If you sign April 2, 2026, you are in the window. That kind of thing.

This matters a lot for pre construction buyers because many projects sell out before they even break ground. Some people are going to be sitting on 2025 contracts and realizing they are just outside the window.

2) Is it your primary residence or a rental property?

Ontario has described two tracks:

• Primary residence (you will live in it)
• Rental property (you will rent it out)

Both may qualify, but the construction start deadline is different. Which leads to the next gating question.

3) Does construction begin by the required deadline?

Construction must begin on or before:

• December 31, 2028 if it will be a primary residence
• December 31, 2029 if it will be a rental property

This is a little unusual in the sense that buyers do not control construction start dates. Builders do. Municipal approvals do. Weather does. Financing does.

So if you are buying pre construction in that 2026 to 2027 signing window, you will want to pay attention to whether the project is already shovel ready or still in planning limbo.

4) Does the home price fall within the qualifying range?

The way the program has been described:

• homes up to $1M could receive a rebate that effectively removes the full 13% HST
• homes up to $1.5M could still qualify for the maximum $130K rebate (as stated in the background info)
• then the rebate decreases proportionally until about $1.85M, where it might be around $24K

So the benefit is not an on off switch once you cross $1M. There is a phase down range.

Still, the cleanest version is this:

• if you are buying at or under $1,000,000, this is where the government is trying to make it feel like “HST is gone”
• above that, you may still get help, just less

5) Do you meet the program’s other conditions?

The background notes say “eligible buyers must meet conditions,” but the fine print is what usually decides edge cases, like:

• assignments
• co ownership
• corporations
• living there for a minimum period (common for primary residence rebates)
• whether the builder credits the rebate on closing or you apply after

Those details matter. And they are typically where people get tripped up.

So for now, treat the dates and price thresholds as necessary conditions. Not always sufficient.

How much is the Ontario new build HST rebate in 2026?

The numbers being discussed are substantial:

• maximum rebate: $130,000

The simplest mental math:

• 13% of $1,000,000 is $130,000

That is why the program is being framed as removing the 13% tax up to $1M. It maps directly to the maximum rebate amount.

But the program also describes a sliding scale for higher priced homes.

Example: buying a $950,000 new build

If the full 13% is effectively rebated, that is up to $123,500 of HST relief in theory.

How it shows up on paper could vary. Sometimes the builder “includes” HST in the price and then credits rebates. Sometimes you pay it and then claim. You need to look at the contract language.

Example: buying a $1.2M new build

You may still qualify, but not necessarily for a full removal of HST depending on the phase out structure. The info provided says homes up to $1.5M may still qualify for max $130K, then decreasing until $1.85M.

So $1.2M might still fall into a strong benefit zone, but again, wait for the final tables.

Example: buying a $1.85M new build

The background says at $1.85M, the rebate could be around $24K.

So yes, still meaningful, but it is no longer the “HST is basically gone” feeling.

Is this only for first time homebuyers?

The broader description in the same context talks about buyers of new homes and a general expansion to boost construction. Those are not always the same thing.

So the honest answer right now is:

• the program is being framed as a broad new home measure
• but there may be additional eligibility filters or separate messaging focused on first time buyers

Until the budget legislation is published, do not assume you qualify just because you are a first time buyer. And also do not assume you do not qualify if you are not.

This is one of those moments where you wait for the actual rules.

Does this apply to condos?

Likely yes, if the condo is a new build purchased from the developer and meets the agreement signing window and the construction timing conditions.

Condos are actually where this could get weird, because condo timelines can be long. If you sign in 2026 and the developer does not begin meaningful construction until after the deadline, eligibility could be at risk depending on how “construction begins” is defined in the final rules.

You will want to watch for definitions like:

• first shovel in the ground
• excavation start
• permit issuance
• substantial work commencement

Governments sometimes define “construction begins” in a specific way for tax purposes. Ask your lawyer to flag this.

Does it apply to assignment sales?

Likely not.

If you buy an assignment from an original purchaser, you are not buying directly from the builder. The original purchase agreement date might be outside the window even if your assignment is inside it. Or vice versa.

And HST treatment on assignments can be complicated on a good day.

So if you are planning to buy an assignment and you are counting on this rebate, do not guess. Get tax advice or at least a lawyer who deals with pre construction assignments regularly.

What about custom builds?

If you buy land and hire a builder, HST can show up in different places. Materials, services, builder invoices, and then there are rebate paths depending on how the build is structured.

This program seems primarily targeted at purchase agreements for new homes, meaning builder sale transactions, but it might also touch self builds depending on how the final legislation is drafted.

If you are doing a custom build, do not assume the headline applies to you automatically. It might. It might not.

Why Ontario is doing this (and why it is only for one year)

The province is trying to kickstart housing starts.

The background provided mentions expectations like:

• 8,000 additional housing starts next year
• supporting up to 21,000 jobs
• boosting Ontario GDP growth by $2.7B
• the province is building around 70,000 new homes this year
• a longer term goal of 1.5M homes by 2031

The one year signing window is basically a shove. A “do deals now, start projects now” kind of policy.

It also lines up with the idea that builders are struggling with project economics. High rates, high costs, slower pre sales. Remove a big tax chunk, you create demand, projects pencil out, financing gets easier. At least in theory.

Practical things to do if you are planning to buy in 2026

This is where people get value from this kind of announcement, because you can actually plan around it.

1) If you can choose your signing date, the window matters

If you are negotiating a pre construction deal in early 2026, the difference between signing in March vs April could be massive.

Some buyers will intentionally delay signing to fall into the window. Builders might not love that. But money is money.

2) Ask the builder how the rebate is handled

In many new build contracts, the purchase price is stated as “including HST” with rebates assigned to the builder, or something similar.

If a new temporary rebate comes in, you want to know:

• does the builder automatically credit it to you on closing
• do you have to apply
• is the price being adjusted, or are they keeping the benefit and marketing it as “tax included”

Do not be shy about this. Ask it directly.

3) Watch for price inflation that quietly eats the rebate

This is the annoying part.

If buyers suddenly have up to $130K of tax relief available, list prices can creep up. Not always, not everywhere, but it is a real risk.

So the net benefit depends on the market reaction.

4) Pay attention to construction start risk on pre construction

This is a big one.

If eligibility requires construction to begin by December 31, 2028 or 2029, then projects that are not ready can fall behind.

Ask for:

• current permitting status
• expected construction start date
• what happens if the start date slips and you lose eligibility, if anything is written into the deal

A lot of builders will not guarantee government rebates. They will say it is your responsibility. Which is exactly why you want to know the risk up front.

5) Keep your documentation clean

If the rebate depends on primary residence status, you may need to prove you moved in and intended to live there. That can involve:

• driver’s license address
• utility bills
• mailing address
• occupancy timing

Just do the normal life stuff, but do it consistently.

Federal portion of HST: what does “partnership until legislation passes” mean?

The background notes say the full HST is covered through partnership until legislation passes covering the federal HST portion for new homes.

Translation, in normal person terms:

• Ontario controls its 8% portion more directly.
• The 5% federal portion requires federal participation and legislation.

So Ontario is basically saying: we are aligned, we are moving together, and buyers should not be stuck in the middle while the legal pieces get finalized.

Still, until the legislation is actually passed, there is always a tiny bit of uncertainty on the mechanics. Not necessarily the intent, but the exact process.

Common questions people will have (and the best current answers)

“Does this mean I pay no HST at all?”

If you buy a qualifying new home up to $1M in the signing window, the intent is yes, effectively no 13% burden after rebates. But on closing documents, it may still appear as HST with a rebate credit. It is not always printed as “0.”

“What if I sign in the window but close years later?”

Closing date is not the key date being discussed. The key dates are signing date and construction start date. Closing later is normal for pre construction. Still, wait for final wording.

“Can investors get it?”

Rental properties are explicitly mentioned with a later construction start deadline, which suggests yes, at least in some form, provided the rules are met.

“Is it only Ontario’s 8% or the full 13%?”

The announcement framing suggests removing the 13% for qualifying homes, with federal cooperation expected. The mechanics may evolve as the legislation is finalized.

The part nobody wants to hear: this is proposed, and details can change

It is planned, announced, and expected to be included in a provincial budget.

But until the budget passes and the implementing rules are published, you should treat this as:

• highly likely, but not legally final
• clear in broad strokes, unclear in edge cases

If you are making a purchase decision that depends on it, build in a backup plan. Or at minimum, do not commit based purely on a headline.

Wrap up

Ontario’s 2026 HST rebate expansion for new builds is being positioned as a temporary but major affordability lever.

If you sign a purchase agreement between April 1, 2026 and March 31, 2027, and the project meets the construction start deadlines (end of 2028 for primary residences, end of 2029 for rentals), you could be looking at up to $130,000 in rebate value, with the biggest impact on new homes priced at $1M or less, and a phase down that still offers relief at higher prices.

Now the real move is simple. If you are planning a new build purchase in 2026, start tracking your signing timeline like it is part of the mortgage. Because it kind of is.

And when the budget language is released, read the definitions. Or get someone to read them for you. That is where the whole thing will be won or lost.

FAQs (Frequently Asked Questions)

What is the 2026 Ontario HST rebate expansion for new home buyers?

The 2026 Ontario HST rebate expansion is a temporary measure planned to remove the 13% Harmonized Sales Tax (HST) cost on eligible new home purchases up to $1 million. This one-year program, starting April 1, 2026, aims to support the housing market by boosting construction starts and reducing upfront costs for buyers.

Who is eligible for the Ontario HST rebate expansion in 2026?

Eligibility requires signing a purchase agreement for a new build between April 1, 2026, and March 31, 2027. The home must be a primary residence or rental property with construction beginning by December 31, 2028 (primary residence) or December 31, 2029 (rental). The home’s price must fall within qualifying ranges: full rebate up to $1 million, partial rebates up to about $1.85 million.

What types of homes qualify as ‘new builds’ under this HST rebate program?

Qualifying ‘new builds’ typically include newly constructed homes bought from builders, pre-construction condos, substantially renovated homes in some cases, and custom builds meeting specific criteria. Resale homes generally do not qualify for this program.

How does the rebate amount vary based on home price?

Homes priced up to $1 million may receive a full rebate effectively removing the entire 13% HST. For homes priced between $1 million and $1.5 million, buyers can still get the maximum rebate of up to $130,000. Beyond $1.5 million, the rebate phases down proportionally until about $1.85 million, where it could be around $24,000.

What are important timing considerations for buyers regarding this HST rebate?

The key timing factors include signing the purchase agreement within the specified one-year window (April 1, 2026 – March 31, 2027) and ensuring construction begins by the set deadlines (December 31, 2028 for primary residences; December 31, 2029 for rentals). Buyers should also note that pre-construction contracts signed before April 1, 2026 likely won’t qualify.

How does this rebate coordinate with federal and provincial portions of HST?

Ontario plans to cover the full HST through a partnership approach until legislation formally includes the federal portion. This means eligible buyers will effectively receive rebates covering both provincial (8%) and federal (5%) parts of the total 13% HST on qualifying new home purchases during this program period.