Ontario has introduced one of the most significant housing affordability measures in years: a temporary elimination of HST on newly built homes, announced in the 2026 provincial budget.

For homes valued up to $1 million, the full 13% HST is removed for purchase agreements signed between April 1, 2026 and March 31, 2027. That's a saving of up to $130,000 — and unlike the rebate introduced last fall, this expanded program is available to all qualifying buyers, not just first-time purchasers. Regan IrishThe Lourantos Group

Here's how the savings break down:

• Up to $1M — Full 13% HST rebated, maximum saving of $130,000
• $1M to $1.5M — Flat $130,000 rebate (partial offset of HST)
• $1.5M to $1.85M — Rebate phases down from $130,000 to $24,000
• Over $1.85M — Existing $24,000 rebate applies

Ontario covers the 8% provincial portion and the federal government has agreed to cover the 5% federal portion, subject to passage of applicable legislation. LocalWiki

To qualify, your agreement of purchase and sale must be signed within the rebate window, with construction beginning by December 31, 2028. The rebate applies to detached homes, semis, condos, townhomes, and qualifying rental properties.

Important caveat: As of early May 2026, the rebate remains proposed and is not yet fully law — federal legislation is still required to bring it fully into force. Buyers should confirm eligibility details with their lawyer before signing.