The HST Rebate on New Homes in Ontario (2026): Up to $130,000, Explained

There is a lot of money on the table for new-home buyers in Ontario right now, and a lot of confusion about it, because there are actually two separate rebates and people keep mashing them into one number. Let me untangle it, because which one you get, and how much, depends entirely on who you are and what you are buying.

Two programs, not one

Keep these separate in your head and the rest is easy.

The first is the Ontario provincial rebate. It returns the full 8% provincial portion of the HST on a qualifying new home, up to $80,000. The important thing here is who it covers: almost anyone buying a new home as their primary residence. You do not have to be a first-time buyer. Move-up buyers and downsizers are in, and investors buying a new home to hold as a long-term rental are in too, through the rental version of the rebate.

The second is the federal rebate. It returns the 5% federal GST, up to $50,000, but this one is for first-time buyers only. You have to be buying your first home, occupying it as your primary residence, and meet the usual first-time conditions.

So where does the headline "$130,000" come from? It is the two stacked. A first-time buyer who qualifies for both, in the window where both apply, can combine the $80,000 provincial and the $50,000 federal for up to $130,000 of relief. That is the best case, and it is real, but most buyers are not first-time buyers, so the number most people will actually see is the $80,000 provincial rebate. If you are a first-time buyer, you get to add the federal piece on top.

The price tiers

The maximum you can claim scales down on more expensive homes, and the two programs use different ceilings.

For the provincial $80,000, you get the full amount on homes up to $1.5 million. Above that it phases down, reaching the older $24,000 maximum by about $1.85 million.

For the federal $50,000, you get the full amount on homes up to $1 million, and it phases out to zero by $1.5 million.

For the vast majority of new homes in Waterloo Region, which sit well under a million dollars, you are in full-rebate territory on both, so the price tiers rarely bite here. They matter more on the high end.

The deadlines, and they are different

This is where people get tripped up, because the two programs do not share a window.

The provincial rebate is a one-year program: your agreement of purchase and sale has to be signed between April 1, 2026 and March 31, 2027. That is a tight window, and it is the signing date that counts, not the move-in date. The home can finish later.

The federal first-time-buyer rebate has a much longer runway: agreements signed from May 27, 2025 through December 31, 2030, with construction beginning before 2031 and substantially complete before 2036.

A quick honesty note on status. The federal first-time-buyer rebate is enacted and in force. The enhanced Ontario provincial rebate was announced in the 2026 Ontario Budget and is moving through the legislative process, so before you count on the provincial $80,000 for a specific purchase, confirm it has been enacted and that your deal qualifies. I keep an eye on this and will tell you where it stands when we talk.

How it actually gets claimed

In most cases the builder credits the rebate against your purchase price at closing, and you assign your rebate rights to the builder. If the builder does not credit it, which can happen on assignment sales or while a program's mechanics are still settling, you pay the HST up front and file with the Canada Revenue Agency yourself, generally within two years of closing.

Either way, the move is the same: get the builder's HST treatment written into your agreement, and have your lawyer review the HST clauses before you sign. This is not a place to assume, and the wording around who claims what is exactly the kind of thing I check on a pre-construction deal.

Before you rely on this

A few cautions, because the dollars are big enough to matter. The home has to genuinely be your primary residence, or a long-term rental for the investor version. Reselling or short-term renting too early can trigger a clawback of the rebate. The price tiers use the home's fair market value, not just the sticker. And the rules can still change, particularly on the provincial side while it is being finalized.

This is general information, not tax or legal advice. Confirm your eligibility and the exact amount with a tax professional and the builder before you count on it.

Want the homes that fit the window?

If you are thinking about a new build and want to make the most of these rebates, I can pull the current new-construction options in Waterloo Region that fit, and walk you through exactly how the rebate gets claimed on your specific deal. Start with my pre-construction guide and the closing cost estimator, then talk to me and we will run your real numbers.

William Forbes, The Rego Team, Corcoran Horizon Realty, Brokerage. Sources: the 2026 Ontario Budget, the federal Department of Finance and Canada Revenue Agency, and published analysis from MNP, Osler, Torkin Manes, and Aird & Berlis. Current as of June 2026 and subject to change as the provincial measure is finalized.