Ontario Expands HST Rebates for New Home Buyers

Ontario Premier Doug Ford announced on Wednesday that his government will temporarily expand rebates on the harmonized sales tax for new home purchases, aiming to stimulate the province's lagging housing construction industry. The one-year measure, to be detailed in Thursday's provincial budget, extends eligibility beyond first-time buyers and covers homes valued up to 1.85 million dollars, providing up to 130,000 dollars in tax relief per qualifying property.

The expansion builds on a rebate program introduced last October, which offered a full provincial rebate of the eight percent portion of the 13 percent HST for first-time buyers of new homes valued at one million dollars or less, combined with a federal rebate for a maximum total of 130,000 dollars. Under the new proposal, effective from April 1, 2026, to March 31, 2027, all buyers of new homes intended as primary residences or residential rental properties will qualify for the full 13 percent HST rebate on homes valued at one million dollars or less. Properties up to 1.5 million dollars remain eligible for the maximum 130,000-dollar rebate, with the amount decreasing proportionally for higher values, down to 24,000...