New Housing HST Rebates: Everything You Need to Know

Download HST Rebate Worksheet ↓

If you're buying a new construction home in Toronto, HST is one of the largest costs — and also one of the most misunderstood.

There are currently 5 HST rebate programs available in Ontario.

Three are law and fully in effect. Two are proposed — announced but not yet passed. The difference matters enormously, because some builders are already pricing proposed rebates into their purchase prices.

This article breaks down every program, what you can actually rely on today, and where buyers are getting caught off guard. Always consult with your Real Estate Lawyer when purchasing a new home.

Quick Reference: Programs at a Glance

The Two Rebates Every New Homebuyer in Ontario Already Gets

1. Federal GST New Housing Rebate — Up to $6,300

This program has been in place since Ontario adopted the HST in 2010. When you buy a new or substantially renovated home as your primary residence, you're entitled to a partial rebate of the 5% federal GST you paid.

The rebate covers 36% of the GST paid, up to a maximum of $6,300. Here's how the thresholds work:

• Homes up to $350,000: Full rebate applies
• Homes $350,000 – $450,000: Rebate phases out on a sliding scale
• Homes above $450,000: No federal rebate

In practice, the builder typically includes this rebate in the purchase price and claims it from CRA directly on your behalf. You don't file a separate application — but you do assign your right to it to the builder as part of the transaction.

Key condition: The home must be your primary residence, or the primary residence of a qualifying relation (more on that below).

2. Ontario Provincial HST New Housing Rebate — Up to $24,000

This is the provincial counterpart. It covers 75% of the 8% provincial portion of HST on the first $400,000 of the purchase price — up to a maximum of $24,000.

Unlike the federal rebate, this one does not phase out based on purchase price. Whether you're buying at $800,000 or $1.2 million, the same $24,000 maximum applies.

Same mechanics: the builder typically claims it on your behalf and reflects it in the net purchase price.

Key condition: Primary residence, or qualifying relation's primary residence.

The New Federal First-Time Buyer Rebate — Up to $50,000

3. Federal First-Time Buyer GST Rebate (Bill C-4) — In Effect as of March 12, 2026

This is the biggest change to new housing tax policy in years. Bill C-4 became law on March 12, 2026. It essentially eliminates the 5% federal GST for eligible first-time buyers on homes up to $1.5 million.

Savings by price point:

• Homes up to $1,000,000: Full GST eliminated — save up to $50,000
• Homes $1M – $1.5M: Partial rebate on a sliding scale
• Homes above $1.5M: No rebate

To qualify, your Agreement of Purchase and Sale must be:

• Signed on or after March 20, 2025, and before January 1, 2031
• Construction must begin before 2031 and be substantially completed before 2036

How to claim it:

• Closings after March 12, 2026: The builder can credit the rebate directly on your statement of adjustments at closing.
• Closings between March 20, 2025 and March 12, 2026: You apply directly to CRA after closing.

Three Things to Watch on This Rebate

It's once per lifetime. If your spouse or common-law partner has already claimed this rebate, you are not eligible — even if this is technically your first purchase.

Assignment sales have a trap. If you purchased an assignment and the original APS was signed before March 20, 2025, this rebate does not apply to you.

The re-signing workaround is blocked. Cancelling an existing APS and re-signing with the same builder to manufacture eligibility is explicitly prohibited.

What's Proposed — Significant Savings That Are Not Yet Law

The following two programs have been announced but have not been passed into legislation. Do not assume they will apply to your purchase until they are formally enacted.

4. Ontario First-Time Buyer Provincial HST Rebate — Up to $80,000 (Proposed)

Ontario announced this program on October 28, 2025. It would rebate the full 8% provincial portion of HST for first-time buyers — matching the structure of the federal Bill C-4 rebate.

If it passes, the combined federal and provincial savings for first-time buyers could reach up to $130,000.

The program is expected to align with the federal parameters: APS signed on or after March 20, 2025, and before 2031.

What's holding it up: The program requires amendments to federal regulations. Ontario says it is working with Ottawa, but no regulations have been issued as of April 2026.

5. Ontario Enhanced HST Rebate (2026 Budget) — Up to $130,000 (Proposed)

This is the most significant proposed change — and the one most likely to affect buyers who are actively looking right now.

Proposed in the Ontario Budget on March 26, 2026, this is a temporary one-year program open to all buyers, not just first-time buyers. It would significantly expand the existing Ontario provincial rebate.

Savings by price point:

APS window: April 1, 2026 to March 31, 2027 — one year only.

Construction timelines: Must begin by December 31, 2028. Substantially completed by December 31, 2031.

Qualifying use: Primary residence or residential rental property (long-term).

Ontario is also asking the federal government to match this with the GST portion. That federal matching is not confirmed in legislation.

What's holding it up: Requires amendments to the federal Excise Tax Act. As of April 2026, this is not yet law.

Important for first-time buyers: If you qualify for both the Ontario First-Time Buyer Rebate (#4) and the Ontario Enhanced Rebate (#5), you get the greater of the two — they do not stack.

Key Definitions That Determine Eligibility

What Counts as a "First-Time Homebuyer"?

This is a legal definition — not a casual one. At the time you take ownership, all of the following must be true:

• You are 18 years of age or older
• You are a Canadian citizen or permanent resident
• Neither you nor your spouse or common-law partner have owned and lived in a home — anywhere in the world — during the current calendar year or the four preceding calendar years

This is a once-per-lifetime rebate. If your spouse or partner has already claimed it, you cannot claim it — regardless of your own ownership history.

What Counts as a "Relation"?

Some rebate programs apply if the home will be the primary residence of a qualifying relation, not just you personally. Under the Income Tax Act, qualifying relations include:

• Parents, children, and siblings (by blood)
• Your spouse or anyone connected to them by blood or marriage
• Your common-law partner or anyone connected to them by blood
• Adopted children
• For the existing New Housing Rebate only: former spouses and former common-law partners also qualify

Not included: Aunts, uncles, nieces, nephews, cousins, or friends.

Here's the critical risk: if any person on title is not a qualifying relation and does not occupy the property as their primary residence, the entire rebate can be denied. This is a common mistake in purchases where a parent is added to title for mortgage qualification purposes.

What About Rental Properties?

The rules vary significantly depending on which program applies.

Programs 1 & 2 (Existing Rebates): Rental properties don't qualify under the New Housing Rebate (NHR), but the New Residential Rental Property Rebate (NRRPR) provides the same dollar values. The key practical differences: you pay full HST upfront at closing, apply to CRA yourself post-closing, and the first occupant must be a tenant with a one-year lease.

Programs 3 & 4 (First-Time Buyer Rebates): Primary residence only. No rental equivalent.

Program 5 (Ontario Enhanced — 2026 Budget): Rental properties qualify through the NRRPR, if the program is enacted.

Filing under the wrong program — NHR instead of NRRPR, or vice versa — can result in the rebate being denied entirely. This is something your real estate lawyer should be reviewing before closing.

The Builder Pricing Problem You Need to Know About

Some Toronto builders have already started pricing proposed rebates into their purchase agreements — treating them as confirmed savings before they've become law.

If a rebate is proposed, it is not yet law. If the legislation doesn't pass, you may owe more money on closing than you budgeted for.

Before you sign an Agreement of Purchase and Sale on a new construction or pre-construction property, confirm with your lawyer exactly which rebates are baked into the price — and which of those rebates are actually in force.

This is not a technicality. Buyers get surprised at closing when they've been banking on savings that never materialized.

What This Means If You're Buying New Construction in Toronto Right Now

What you can rely on today:

All buyers purchasing a new home as their primary residence are entitled to the federal GST rebate (up to $6,300) and the Ontario provincial rebate (up to $24,000). In most cases, your builder handles both at closing.

First-time buyers with an APS signed on or after March 20, 2025 can now access the new federal GST rebate under Bill C-4 — up to $50,000 — which became law on March 12, 2026.

What to watch:

Ontario's matching first-time buyer provincial rebate (up to $80,000) and the enhanced rebate for all buyers (up to $130,000) are announced but not yet in force. Both require federal legislative action.

New construction transactions carry more legal complexity than resale purchases, and HST planning is a real part of that. If you have questions about how these programs apply to your specific situation, speak with your lawyer before you sign.