The Ontario HST Rebate
Need to Know - Advocacy Bulletin – June 19, 2026
What is the Ontario HST Rebate?
The Government of Ontario has introduced a HST rebate that eliminates the 8% provincial portion of the HST for eligible purchases of newly built homes valued up to $1 million. In addition, the federal government has agreed to partner with Ontario, and remove the 5% federal portion of the tax for first-time buyers of a newly built home. This creates a combined HST rebate of 13% for eligible Ontarians who are first-time homebuyers purchasing a newly built home.
What Homes Qualify?
The rebate applies to newly built detached and semi-detached houses, condominium units, townhouses, and rowhouses only if the agreement of purchase and sale between the buyer and builder was signed between April 1, 2026, and March 31, 2027.
How Much Can a First-Time Homebuyer Save?
The province covers its 8% portion of the HST, and the federal government covers 5% of the federal portion creating a combined HST rebate of 13% on qualifying new homes valued up to $1 million.
For example,
8% covered by Ontario (up to $80,000)
5% covered by the federal government (up to $50,000)
13% total = up to $130,000 back on a $1 million home
When is the Rebate Active?
Ontario’s HST rebate has passed provincial legislation, but, as of June 19th, 2026, administrative and regulatory processes still need to be set up between the province and federal government. This means that the provincial portion of the rebate still needs to be finalized for the Canadian Revenue Agency (CRA) to accept the rebate. For example, a first-time buyer could currently receive the federal portion of the rebate, but the Ontario portion of the rebate would only become accessible once the rules are finalized.
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