07/30/2026
Ontario’s 2026 budget measures have fundamentally reshaped the tax landscape for newly constructed homes by introducing a temporary, high-impact expansion of the HST rebate.
For purchase agreements signed between April 1, 2026, and March 31, 2027, the program eliminates the full 13 percent HST on eligible homes valued up to $1 million, delivering up to $130,000 in direct relief. This temporary expansion applies broadly to primary residences, self-builds, and qualifying residential rental properties, shifting the traditional eligibility requirements away from strict first-time buyer status. The rebate structure operates on a tiered scale, offering full relief up to $1 million, a flat $130,000 reduction for properties between $1 million and $1.5 million, and a tapering benefit up to $1.85 million, above which the relief caps at the baseline $24,000 threshold.
Navigating these changes requires a careful review of contract assignment clauses, construction timelines extending through 2031, and traditional closing adjustments such as development charges and utility fees.
Our latest real estate blog breaks down the exact eligibility timelines, developer pricing strategies, and contract clauses required to protect your rebate: https://ow.ly/tkNG50Zum63
Learn how federal and Ontario HST rebates may reduce the cost of buying a new or substantially renovated home in Ontario in 2026.