Ontario's 2026 Budget introduced expanded HST relief measures designed to reduce upfront costs for eligible new home buyers. The expanded HST rebate on new homes in Ontario could put thousands of dollars back in your pocket.Whether you're buying a pre-construction condo in Mississauga, building in Brampton, or investing in Vaughan, these changes directly affect how much HST you can recover. This guide walks you through eligibility, rebate amounts, and exactly how to claim so you don't leave money behind.
Buyers should confirm whether some builders already credit the rebate into your purchase price. Since your final affordability depends on factors like deposits, closing costs, and financing, using a mortgage calculator before purchasing can help you estimate your monthly costs more accurately. Before you assume you can claim it separately, confirm with your builder whether that's the case.
What Is the HST Rebate on New Homes?
The HST rebate on new homes isn't just one thing. It's actually made up of two separate pieces: the federal GST portion and the Ontario provincial portion. Together, they're what most people call the HST rebate.Terms like "HST rebate," "GST portion," and "Ontario new housing rebate" are often used interchangeably, but they're distinct components with their own rules. Before you file anything, you need to know which part you're claiming.2026 Policy Update: What's New and Why It Matters To You
Ontario’s Budget March 25-26, 2026, cut the full 13% HST on new homes up to $1 million in value, providing qualifying buyers with a possible rebate of up to $130,000. If your home is $1.5 million or less, you still get the entire $130,000. Above that, the rebate phases down, landing at $24,000 for homes at $1.85 million and beyond.This expanded HST rebate on new homes in Ontario program is temporary. It runs from April 1, 2026, through March 31, 2027. It's backed by a roughly $2.2 billion federal cost-share agreement, so it has real teeth but only if you act within the window. And if you're a first-time buyer, you'll want to know the First-Time Home Buyers' GST/HST Rebate has also received Royal Assent and applies retroactively to March 20, 2025.Who Qualifies? Find Your Buyer Type Below
Your eligibility depends on who you are and how you're buying.- Buying a new-build home in the GTA? Buying a new-build home in the GTA? If you're purchasing in Brampton, Milton, Vaughan, Markham, or Oakville and the home will be your primary residence, you're in. For buyers looking for a balance between affordability and modern living, new-construction townhomes are also a popular option across Ontario.
- Buying a pre-construction condo in Toronto or Mississauga? Pay close attention to whether you're claiming at assignment or at final closing
- Building or substantially renovating your own home? You can claim your rebate directly through the CRA as an owner-builder.
- Investing in a rental property? You cannot use the standard buyer rebate. You'll need to go through the separate NRRP rebate and confusing the two is one of the most costly mistakes investors make.
- Buying through a co-op, or purchasing a mobile or floating home? You may also qualify under additional eligible categories.
How Much Can You Actually Get Back?
Under the older federal structure, the rebate phases out entirely once fair market value (FMV) exceeds $350,000. Under the old rules, Ontario's provincial rebate stays capped at $24,000 regardless of FMV.| Price Band | 2026 Rebate Amount |
| Up to $1,000,000 | Up to $130,000 |
| $1,000,000–$1,500,000 | Up to $130,000 |
| $1,500,000–$1,850,000 | Phases down to $24,000 |
| $1,850,000+ | $24,000 |
Are You an Investor? Here's What You Need to Know
If you're a landlord or investor, the New Residential Rental Property (NRRP) rebate is your path, not the standard buyer rebate. And there's been a significant update: the federal NRRP rebate has increased to 100%, up from 36%, for purpose-built rental housing.The 2026 Ontario Budget also announced an Enhanced NRRP Rebate for rental properties. The basic NRRP rebate requires an FMV of less than $450k. If your project is purpose-built rental housing that starts after September 13, 2023 and is completed before 2036, you may be eligible for the higher PBRH refund. You will file Form GST524. If you are dealing with numerous units, include Form GST525.How To Apply: The Right Forms For Your Purpose
The forms you need will depend on whether you bought or constructed the property. Before filing their claim, buyers can review the official CRA GST/HST New Housing Rebate requirements, eligibility rules and application details.- Bought from a builder? File GST190 + RC7190-ON
- Owner-built your home? File GST191 + GST191-WS + RC7191-ON
- Investor or landlord? File GST524 (plus GST525 for multi-unit properties)
Common Mistakes You'll Want to Avoid
Common mistakes include:- Assuming the rebate is already at your builder's price. Always confirm; it's not always the case.
- Investors filing for the buyer rebate instead of NRRP. These are two separate programs. Filing the wrong one means your claim will be denied.
- Missing the filing deadline. There are no extensions.
- Losing original invoices. The CRA won't accept photocopies, so keep everything organised from day one.
- Misunderstanding the phase-out thresholds. Your rebate amount shifts significantly depending on your home's price; know your number before you file.