Quick answer
Ontario's 2026 enhanced HST rebate gives back up to $130,000 of HST on a new or pre-construction home: the full 13% on a home valued (before HST) at $1,000,000 or less. It covers both primary-residence buyers and long-term-rental investors whose agreement of purchase and sale is signed between April 1, 2026 and March 31, 2027. For now you pay the HST at closing and claim it back from CRA afterward.
- Up to $130,000 back (full 13% under $1M)
- Investors included via the rental rebate
- Not first-time-buyer only
- Signed Apr 1, 2026 - Mar 31, 2027
- Value measured before HST (FMV)
- Claimed back from CRA after closing
Ontario's 2026 enhanced HST rebate on new homes, explained
Ontario's 2026 enhanced HST rebate returns up to $130,000 on a new or pre-construction home: the full 8% provincial portion (up to $80,000) plus the 5% federal portion (up to $50,000). It is in effect now, for agreements signed April 1, 2026 through March 31, 2027, and covers both primary-residence buyers and long-term-rental investors, not just first-time buyers.
This is the single biggest change to new-home affordability I have seen in years. If you buy a brand-new home from a builder, or build your own, you can now recover the entire 13% HST on the first $1,000,000 of value. That is the 8% Ontario provincial portion (capped at $80,000) stacked on top of the 5% federal portion (capped at $50,000), for up to $130,000 back.
The rebate keys off the price net of HST, meaning the home's fair market value or consideration, not the HST-included sticker price. At or below $1,000,000 you get the full 13% back and your net HST is effectively zero. Between $1,000,000 and $1,500,000 you receive a flat $130,000. Above $1,500,000 it tapers, and at $1,850,000 and up you are left with $24,000.
Who it is for, at a glance: primary-residence buyers and long-term-rental investors (the latter through the New Residential Rental Property Rebate). It is not limited to first-time buyers. Short-term and vacation rentals are excluded. The legal backing is Ontario's Bill 114 for the provincial 8% portion (Royal Assent May 12, 2026) and federal Bill C-26 for the 5% portion (Royal Assent June 19, 2026), which extended the federal money to investors as well.
Why it matters: on a $1,000,000 pre-construction condo, that is six figures back in your pocket, which changes the math on both end-user purchases and rental investments. The rest of this guide walks through the value bands in detail, exactly who qualifies, the timing and assignment rules, how you actually claim the money from CRA, and how this differs from the separate federal First-Time Home Buyers' GST rebate.
How much HST can you get back? The 2026 rebate amounts by price
You can get up to $130,000 back. A new home priced at or under $1,000,000 (before HST) earns the full 13% HST back, leaving net HST of $0. From $1,000,000 to $1,500,000 the rebate is a flat $130,000. From $1,500,000 to $1,850,000 it tapers from $130,000 down to $24,000. At or above $1,850,000 you get $24,000.
The single most important point: every band keys off the home's price before HST (its fair market value, or consideration), not the HST-included sticker you sometimes see in a pre-construction price list. Get the base number right and the rest follows.
The four value bands at a glance
| Price (before HST / FMV) | Enhanced rebate |
|---|---|
| $1,000,000 or less | Full 13% HST back (max $130,000) - net HST $0 |
| $1,000,000 to $1,500,000 | Flat $130,000 |
| $1,500,000 to $1,850,000 | Linear taper from $130,000 down to $24,000 |
| $1,850,000 and up | $24,000 |
The number ladder: what you actually pay
Here is the math worked out across the price spectrum for a qualifying buyer. "Net HST" is the full 13% HST minus your rebate; "net cost" is the price plus that net HST. Notice that at or below $1,000,000 your HST is fully wiped out.
| Price (before HST) | Full HST (13%) | Rebate | Net HST | Net cost |
|---|---|---|---|---|
| $500,000 | $65,000 | $65,000 | $0 | $500,000 |
| $600,000 | $78,000 | $78,000 | $0 | $600,000 |
| $700,000 | $91,000 | $91,000 | $0 | $700,000 |
| $800,000 | $104,000 | $104,000 | $0 | $800,000 |
| $900,000 | $117,000 | $117,000 | $0 | $900,000 |
| $1,000,000 | $130,000 | $130,000 | $0 | $1,000,000 |
| $1,250,000 | $162,500 | $130,000 | $32,500 | $1,282,500 |
| $1,500,000 | $195,000 | $130,000 | $65,000 | $1,565,000 |
| $1,700,000 (provisional) | $221,000 | $69,429 | $151,571 | $1,851,571 |
| $1,850,000 (provisional) | $240,500 | $24,000 | $216,500 | $2,066,500 |
The takeaway for buyers: under $1,000,000 the program effectively removes HST from the purchase. Between $1,000,000 and $1,500,000 you keep the full $130,000, but the HST above that base is yours to fund. Above $1,500,000 the benefit shrinks quickly toward the $24,000 floor (Ontario Bill 114; CRA).
Who qualifies for the Ontario new-home HST rebate?
You qualify if you sign an agreement of purchase and sale with the builder between April 1, 2026 and March 31, 2027 for a new or pre-construction home used as a primary residence or a qualifying long-term rental. This is not first-time-buyer only. Owner-occupiers and long-term-rental investors both qualify; short-term and vacation rentals do not.
There are two paths into the same enhanced rebate, and which one you use depends on how you will use the home.
Owner-occupier path (New Housing Rebate)
If you, or a qualifying close relative, will move into the new home as a primary place of residence, you claim through the New Housing Rebate. The home must be bought from a builder or owner-built. There is no first-time-buyer test here, which is the big change from the older federal rebate most people remember.
Investor path (New Residential Rental Property Rebate, NRRPR)
If you are buying to rent the unit out, you qualify through the NRRPR, provided the home is leased on a residential tenancy of one year or longer. Short-term and vacation rentals (think nightly or weekly bookings) are excluded. A useful practical point: NRRPR claims can be filed up to two years after the HST becomes payable, so an investor who is finalizing a tenant has filing room.
| Owner-occupier (NHR) | Investor (NRRPR) | |
|---|---|---|
| Use of home | Primary residence (you or close relative) | Long-term residential rental (1 year or more) |
| First-time buyer required? | No | No |
| Short-term/vacation rental | n/a | Excluded |
| Filing window | At/after closing via your lawyer | Up to 2 years after HST becomes payable |
The dates that decide eligibility
- APS signed with the builder: between April 1, 2026 and March 31, 2027.
- Construction begins: by December 31, 2028 for a home bought from a builder; within the April 1, 2026 to March 31, 2027 window if you are building it yourself or building a rental.
- Substantially complete: by December 31, 2031 for a home bought from a builder, or by December 31, 2029 for an owner-built home or a rental.
Pre-construction and assignment sales: the timing traps
Eligibility turns on the ORIGINAL agreement of purchase and sale date, not the assignment date. Both the original builder APS and the assignment agreement must be signed between April 1, 2026 and March 31, 2027. Because almost every existing pre-construction contract was signed before April 2026, most current assignments do not qualify.
This is the trap I see catching buyers and sellers most often right now, and it is barely explained anywhere. The enhanced HST rebate keys off when the original buyer signed with the builder. If that first APS predates April 1, 2026 (and the vast majority of today's assignment inventory does, because those projects launched and sold out years ago), the unit is offside no matter when you take the assignment.
To qualify, you need both contracts inside the window: the original buyer-to-builder APS signed on or after April 1, 2026, AND the assignment agreement signed on or before March 31, 2027 (timing per Ontario Bill 114 and the federal funding under Bill C-26). In practice that means a unit launched in 2026, then assigned within the same year. A standard "buy in 2022, assign in 2026" deal does not work.
The assignment premium carries its own HST
Even when a deal does qualify, watch the uplift. The premium an assignor charges over the original purchase price is treated as its own supply and carries its own HST that the rebate does not cover (CRA). So a buyer can owe HST on the assignment profit while only the base unit value feeds the rebate calculation. On a large premium that is a real, uncovered cost that many spreadsheets miss.
Check before you sign: ask for the date on the ORIGINAL builder APS before you do anything else. If it is before April 1, 2026, the enhanced rebate is off the table for that assignment. Confirm it in writing, then have your lawyer model the HST on the premium separately from the base price.
Do not let a listing's "HST rebate eligible" language stand on its own. That phrasing usually refers to the older rebate regime, not the 2026 enhanced rebate. The two are not the same, and assuming they are can blow a six-figure hole in your numbers at closing.
At Connect we underwrite pre-construction and assignment deals daily, and this is exactly the kind of clause-level detail we pressure-test before a client commits. If you are looking at an assignment and want the rebate math and the original-APS date verified, get it checked by someone who works these contracts for a living.
Ontario rebate vs. the federal first-time buyers' GST rebate
These are two separate programs. The headline $130,000 is Ontario's enhanced HST rebate, open to primary-residence buyers and long-term-rental investors. The federal First-Time Home Buyers' GST Rebate is a different measure: a maximum $50,000 for first-time owner-occupiers only, once per lifetime. Do not conflate the two.
I get this question constantly, because both programs talk about the 5% federal GST portion and both phase out near $1.5M. But they reach different buyers and run on different rules. Here is the side-by-side.
| Feature | Ontario enhanced HST rebate | Federal First-Time Buyers' GST Rebate |
|---|---|---|
| Maximum amount | Up to $130,000 (8% Ontario up to $80,000 + 5% federal up to $50,000) | Up to $50,000 (federal 5% GST only) |
| Who is eligible | Primary-residence buyers AND long-term-rental investors (via NRRPR). Not limited to first-time buyers. | First-time owner-occupiers only. Once per lifetime. |
| Price for full rebate (net of HST) | Full rebate up to $1,000,000; flat $130,000 from $1,000,000 to $1,500,000 | Full rebate up to $1,000,000 |
| Phase-out | Linear taper $1,500,000 to $1,850,000 ($130,000 down to $24,000); $24,000 floor above $1,850,000 (provisional pending final regulation) | Linear phase-out $1,000,000 to $1,500,000 ($25,000 at $1,250,000); nil at $1,500,000 |
| Agreement window | APS signed with builder April 1, 2026 to March 31, 2027 | APS on or after March 20, 2025 |
| Once per lifetime? | No | Yes |
The key thing to understand about the 5% federal portion is who delivers it. A first-time owner-occupier gets their 5% through the federal First-Time Home Buyers' GST Rebate (Bill C-4, Royal Assent March 12, 2026). Everyone else, including repeat buyers and long-term-rental investors, gets the matching 5% through Ontario's relief, which Ottawa funds with $1.7B under Bill C-26 (Improving Housing Supply Act, Royal Assent June 19, 2026).
How and when you actually get the money
As of June 2026 there is no builder credit at closing for the enhanced rebate. You fund the full 13% HST at closing and claim it back from CRA afterward through your lawyer. CRA has not yet released the enhanced forms or administration, so the cash flows out first and comes back later.
This is the part most buyers misunderstand. The headline says "up to $130,000 back," but in practice you pay it first. Here is the actual sequence.
- Confirm your dates and your use. Make sure your agreement of purchase and sale (APS) with the builder was signed between April 1, 2026 and March 31, 2027, and that you are buying as a primary residence (or for a qualifying close relative) or as a long-term rental. Short-term and vacation rentals do not qualify.
- Pay the full 13% HST at closing. Because there is no builder credit yet for the enhanced rebate, your lawyer remits the entire HST to the builder on the closing statement. On a qualifying home that is the full amount, not the net.
- Your lawyer files the rebate after closing. Owner-occupiers file the enhanced New Housing Rebate (NHR); investors file the New Residential Rental Property Rebate (NRRPR). The NRRPR can be filed up to two years after the tax becomes payable, but there is no reason to wait.
- CRA pays you back. The rebate comes directly from CRA after the claim is processed.
A builder credit at closing may arrive later, once CRA releases the enhanced forms and administration. The 5% federal-portion administration is still rolling out as of June 2026. When that happens, some builders may begin crediting the rebate up front so you never have to fund it. Until then, plan on paying first and claiming back.
The legislation behind the rebate (Bill 114 and Bill C-26)
Three statutes stand behind this rebate. Ontario's Bill 114, the HST Relief Implementation Act (Residential Property Rebates), 2026, delivers the 8% provincial portion (Royal Assent May 12, 2026). Federal Bill C-26, the Improving Housing Supply Act, funds the 5% federal portion for all qualifying buyers (Royal Assent June 19, 2026). A separate federal Bill C-4 created the first-time-only 5% rebate (Royal Assent March 12, 2026).
Status as of June 22, 2026: All three bills have received Royal Assent and the program is in effect for agreements signed on or after April 1, 2026. The catch is administration: the CRA's enhanced rebate forms and processing are still rolling out, so there is no builder credit at closing yet. You fund the full 13% HST at closing and claim it back through your lawyer.
What each bill does
- Ontario Bill 114 (HST Relief Implementation Act (Residential Property Rebates), 2026) - Royal Assent May 12, 2026. This is the provincial leg: it enhances the 8% Ontario portion of the rebate, worth up to $80,000.
- Federal Bill C-26 (Improving Housing Supply Act) - Royal Assent June 19, 2026. This $1.7B measure funds Ontario's enhanced 5% federal portion (up to $50,000) for all qualifying buyers, including long-term-rental investors, not just first-time owners.
- Federal Bill C-4 (Making Life More Affordable for Canadians Act) - Royal Assent March 12, 2026. This created the separate First-Time Home Buyers' GST Rebate. Don't conflate it with the enhanced program: it is the first-time-only path to the 5%, capped at $50,000, once per lifetime.
Together, Bill 114 (8%) and Bill C-26 (5%) are what give a broad pool of buyers, owner-occupiers and rental investors alike, access to the full 13% HST back up to $130,000 on qualifying homes.
Caution: Because CRA's enhanced administration is not yet live, treat the claim as a post-closing refund, not a discount at the table. Budget the full HST as cash required to close, and have your lawyer file the rebate afterward. Long-term-rental (NRRPR) claims can be filed up to two years after the tax becomes payable.
Frequently asked questions
Ontario's 2026 enhanced HST rebate returns up to $130,000 on a qualifying new or pre-construction home, combining the 8% provincial portion (up to $80,000) and the 5% federal portion (up to $50,000). It covers primary-residence buyers and long-term-rental investors, and is claimed back from CRA after closing.
Is this the same as the federal first-time home buyers' GST rebate?
No, they are separate programs. The enhanced Ontario rebate returns up to $130,000 (the 8% provincial plus 5% federal portion) and is open to primary-residence buyers and long-term-rental investors, not just first-timers. The federal First-Time Home Buyers' GST Rebate (Bill C-4, Royal Assent March 12, 2026) is a first-time-only, once-per-lifetime path worth up to $50,000 on the 5% federal portion alone.
How much can I get back?
Up to $130,000 on a qualifying new or pre-construction home: 8% Ontario provincial portion (up to $80,000) plus 5% federal portion (up to $50,000). The amount keys off the home's price net of HST. At or under $1,000,000 you recover the full 13% HST. From $1,000,000 to $1,500,000 you get a flat $130,000. Above that it tapers down.
Do investors qualify, or only people buying a home to live in?
Long-term-rental investors do qualify, claimed through the New Residential Rental Property Rebate (NRRPR). The federal 5% portion was funded for all qualifying buyers, including investors, under Bill C-26 (Royal Assent June 19, 2026). Short-term and vacation rentals are excluded. You are not limited to first-time buyers, and the unit can be a new home from a builder or owner-built.
Does my pre-2026 pre-construction unit qualify?
Only if your agreement of purchase and sale (APS) with the builder was signed between April 1, 2026 and March 31, 2027. The program keys off the signing date, so a contract signed before April 1, 2026 falls outside the window and does not qualify, regardless of when the project completes. Construction must also begin by December 31, 2028.
Can I get the rebate on an assignment purchase?
Rarely. Both the original APS (first buyer to builder) and the assignment agreement must fall within the April 1, 2026 to March 31, 2027 window. Because most original pre-construction contracts predate April 2026, most existing assignments do not qualify. Note too that the assignment premium carries its own HST that this rebate does not cover.
Is the value measured before or after HST?
Before HST. The bands key off the price net of HST, meaning the fair market value or consideration, not the HST-included gross price. CRA assesses fair market value at possession and can require an appraisal. Near a threshold, your home's band can shift if CRA's assessed value differs from your contract price, which changes how much you recover.
What if I signed my contract before April 2026?
A builder APS signed before April 1, 2026 does not qualify for the enhanced rebate. The qualifying window is APS signed between April 1, 2026 and March 31, 2027. This is a firm eligibility gate, so the signing date on your purchase agreement is the first thing to check before counting on any rebate.
When do I actually get the money, at closing or after?
After closing. As of June 2026 there is no builder credit at closing for the enhanced rebate, because CRA's enhanced forms and administration are not yet released. You fund the full 13% HST at closing, then your lawyer claims the rebate back from CRA afterward. Long-term-rental (NRRPR) claims can be filed up to two years after the tax becomes payable.
Who counts as a "close relative" who can occupy the home?
A close relative who can occupy the home as a primary residence is your spouse or common-law partner, parent, grandparent, child, grandchild, or sibling. Occupancy by one of these relatives can satisfy the primary-residence test, which matters when you are buying a new or pre-construction home for a family member rather than living in it yourself.
What if my home is over $1,500,000?
The rebate tapers above $1,500,000 (net of HST). From $1,500,000 to $1,850,000 it declines on a straight line from $130,000 down to $24,000, and at or above $1,850,000 you receive $24,000 only. These figures are provisional pending final regulation. Because CRA assesses fair market value at possession, a home near a threshold can shift bands.
