A new or pre-construction home in Ontario carries 13% HST on top of the price: 5% federal and 8% provincial. On a $900,000 home that is $117,000. Since 2025, federal and provincial rebates can now return up to the full 13%.
1. Ontario's temporary enhanced rebate: up to $130,000
This is the largest program. It applies to primary residences and rentals, and you don't need to be a first-time buyer.
- Agreement date: signed with the builder between April 1, 2026 and March 31, 2027
- Up to $1 million: the full 13% HST is relieved
- $1 million to $1.5 million: a flat $130,000
- $1.5 million to $1.85 million: declines from $130,000 to $24,000
- $1.85 million and above: only the standard Ontario rebate, up to $24,000
The relief comes in two parts: the Ontario enhanced rebate (ENHR, up to $80,000) through the CRA, and the Ontario New Home Affordability Payment (ONHAP) covering the federal 5%. Ontario has opened applications.
2. First-time buyer rebates: federal + Ontario, agreements to the end of 2030
First-time buyers also have a longer-running program:
- Federal: 100% of the 5% GST on homes up to $1 million (max $50,000), phasing out to zero at $1.5 million. This became law in March 2026.
- Ontario: 100% of the 8% on homes up to $1 million (max $80,000), phasing down between $1 million and $1.5 million, with the standard Ontario rebate (up to $24,000) as a floor.
- Agreement date: March 20, 2025 to December 31, 2030
You generally qualify if you are 18 or older, a Canadian citizen or permanent resident, neither you nor your spouse lived in a home you owned this year or in the previous four years, and you will be the first occupant.
3. Can you combine them?
No double-dipping: total relief can't exceed the full HST. Inside the enhanced window, first-time and repeat buyers usually end up with the same total; only the split between the federal rebate and ONHAP changes. The first-time buyer rebate matters most after the enhanced program ends in March 2027.
4. Examples
| Price before HST | HST | Enhanced window | First-time buyer (outside window) |
|---|---|---|---|
| $750,000 | $97,500 | Full | Full |
| $1,000,000 | $130,000 | Full | Full |
| $1,250,000 | $162,500 | $130,000 | $65,000 |
| $1,600,000 | $208,000 | about $99,714 | $24,000 |
Run your own numbers with our new home HST rebate calculator.
5. Watch out for
- The agreement date decides, not the closing date. Pre-construction often closes years later.
- Assignments follow different rules; confirm eligibility for the assignee separately.
- Timing of payment. If the builder can't credit the rebate at closing, you pay the HST and claim it back from the CRA.
- The home must be a primary residence for you or a close relative to claim as an owner-occupier.
Looking at a new build and want to know what a specific project qualifies for? Talk to us.
Sources
For general information only, not legal or tax advice. Rules can change; confirm with your lawyer or accountant before you sign.
