A newly built home in Ontario carries 13% HST: 5% federal and 8% provincial. Two programs can give most or all of it back. The new-build HST rebate in Ontario does not apply to resale homes, which carry no HST. Figures checked October 3, 2026.
1. Federal first-time home buyers’ rebate
- Up to 100% of the federal part, to a maximum of $50,000.
- Full rebate on homes at or below $1,000,000. It is gradually reduced between $1,000,000 and $1,500,000, and there is none at $1,500,000 or above.
- For first-time buyers, on a newly built or substantially renovated home used as a primary place of residence.
2. Ontario enhanced new housing rebate
- Up to 100% of the 8% Ontario part, to a maximum of $80,000.
- The agreement must be signed on or after April 1, 2026 and on or before March 31, 2027.
- Construction must begin by December 31, 2028 and be substantially completed by December 31, 2031.
- A flat $80,000 from $1,000,000 to $1,500,000, a partial rebate up to $1,850,000, and above that only Ontario’s regular rebate of up to $24,000.
- It is not limited to first-time buyers. The home must be a primary residence for you or a relative.
A worked example
A new townhouse at $800,000 before HST, bought by an eligible first-time buyer inside the Ontario window: HST is $104,000. The federal rebate covers the $40,000 federal part and the Ontario rebate covers the $64,000 provincial part. A buyer who is not a first-time buyer would still get the Ontario rebate, and would pay the $40,000 federal part.
Two questions for the builder
- Does the advertised price include HST, and are the rebates assigned to the builder?
- If I don’t qualify for a rebate, for example because I rent the home out, how much will I owe on closing?
Run your own price: the new-build HST rebate calculator.
Sources (official pages, checked October 3, 2026)
- CRA – First-time home buyers’ GST/HST rebate (new homes, up to $50,000)
- CRA Notice 346 – Ontario Enhanced New Housing Rebate (up to $80,000)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.