HST Rebate for New Homes: Ontario and Canada 2026

Direct answer: Buyers of new or substantially renovated homes may qualify for a federal GST/HST New Housing Rebate — generally 36% of the GST or federal HST portion paid, up to $6,300, phased out between $350,000 and $450,000 fair market value. In Ontario, a separate provincial rebate covers 75% of the 8% provincial HST portion, up to $24,000, phased out above a $400,000 purchase price. Two newer 2026 programs can add significantly more for qualifying buyers: a federal First-Time Home Buyers' GST/HST Rebate (up to $50,000) and a temporary Ontario enhanced provincial rebate (up to $80,000) — both described below with their own eligibility windows.

Primary sources: CRA: GST/HST new housing rebate; CRA Notice 346: Ontario enhanced new housing rebate.

Standard GST/HST New Housing Rebate (federal)

Primary sources: CRA: GST/HST new housing rebate.

Rule	Detail
Rebate rate	36% of the GST, or the federal part of the HST, paid or deemed paid
Maximum rebate	$6,300
Full-rate threshold	Fair market value up to $350,000
Phase-out range	$350,000–$450,000, rebate declines to zero
Above $450,000	No federal new housing rebate under the standard program

Ontario's standard provincial new housing rebate

Primary sources: CRA Notice 346: Ontario enhanced new housing rebate.

Rule	Detail
Rebate rate	75% of the 8% provincial portion of HST paid
Maximum rebate (builder purchase)	$24,000, fully covering the provincial portion on homes up to $400,000
Maximum rebate (owner-built, land HST not paid)	$16,080, calculated on eligible construction costs only
Price cap	Unlike the federal rebate, Ontario's standard rebate has no upper fair-market-value cutoff — it simply maxes out at $24,000

New for 2026: First-Time Home Buyers' GST/HST Rebate (federal)

Primary sources: CRA: First-Time Home Buyers' GST/HST rebate.

Bill C-4 received Royal Assent in March 2026, creating a new federal rebate specifically for first-time buyers of new homes, on top of the standard rebate above. It eliminates the federal GST/HST on qualifying new homes valued up to $1,000,000, phases out between $1,000,000 and $1,500,000, and caps at a $50,000 maximum benefit. It applies to agreements of purchase and sale entered into on or after March 20, 2025. Because this program only recently became law, confirm current eligibility and how it's applied on your statement of adjustments with your builder, lawyer, or the CRA directly — buyers who closed before Royal Assent may need to apply to CRA separately to claim it retroactively.

New for 2026: Ontario's temporary enhanced provincial rebate

Primary sources: Ontario 2026 Budget: HST relief on new homes; CRA Notice 346: Ontario enhanced new housing rebate.

Ontario separately enacted a temporary enhancement to its provincial new housing rebate (implemented through Ontario's 2026 Budget legislation and enabling federal HST regulations). Unlike the federal first-time-buyer rebate, this one is open to all qualifying buyers of a new home used as a primary residence or rental, not just first-time buyers.

Fair market value	Enhanced provincial rebate
Up to $1,000,000	100% of the 8% provincial HST portion, up to $80,000
$1,000,001–$1,500,000	$80,000 flat
$1,500,001–$1,850,000	Declines linearly from $80,000 to $24,000
Above $1,850,000	$24,000 (the pre-existing standard rebate level)

This enhancement applies only to agreements of purchase and sale entered into between April 1, 2026 and March 31, 2027, with construction required to start by December 31, 2028 and substantial completion by December 31, 2031 (2029 for rental properties). It covers the 8% provincial portion only — the federal portion is addressed separately by the First-Time Home Buyers' GST/HST Rebate above, so how much a specific first-time buyer can combine from both programs depends on their purchase price and timing. Given how recently both programs took effect, verify the exact combined figure for your transaction with your builder or the CRA before relying on it.

Common mistakes

• Assuming every new home qualifies automatically: the rebate is generally credited by the builder at closing or claimed directly with CRA — it is not automatic on every purchase.
• Confusing the federal cap with the Ontario cap: the $6,300/$450,000 federal figures and the $24,000/$400,000 Ontario figures are separate calculations that can both apply on the same purchase.
• Missing that the 2026 enhancements have their own date windows: the first-time buyer federal rebate and Ontario's temporary enhancement each have distinct agreement-date requirements — a home bought outside those windows falls back to the standard rebates only.
• Skipping written confirmation from the builder: how the rebate is credited or assigned should be documented in the purchase agreement or statement of adjustments.

Methodology and limitations

Verified August 8, 2026 against CRA's GST/HST new housing rebate guidance, CRA's First-Time Home Buyers' GST/HST rebate announcement, and the Government of Ontario's 2026 Budget HST rebate details. The 2026 federal and Ontario enhancements were enacted only months before this page was written and involve interacting eligibility rules; this page does not replace a builder's statement of adjustments, a real estate lawyer, an accountant, or CRA's own rebate application guidance for your specific purchase.

Sources: CRA GST/HST new housing rebate; CRA: First-Time Home Buyers' GST/HST rebate now available; CRA Notice 346: Ontario enhanced new housing rebate; Ontario 2026 Budget: HST relief on new homes.

Use the Ontario HST Calculator to work out the HST on a purchase price before rebates. Related reading: GST vs HST vs PST explained and first-time home buyer guide.