The Ontario government is temporarily relieving the Harmonized Sales Tax (HST) on new homes valued up to $1 million and temporarily reducing the HST on new homes between $1 million and $1.85 million.

The 13 per cent HST consists of an 8 per cent provincial portion and a 5 per cent federal portion.

The relief for the 8 per cent provincial portion of HST has been implemented through temporary enhancements to Ontario’s New Housing Rebate (NHR) and New Residential Rental Property Rebate (NRRPR), which are rebates of the 8 per cent provincial portion of the HST relating to new and substantially renovated homes and residential rental properties.

Under Ontario’s NHR and NRRPR, the maximum rebate for a home/rental unit prior to the enhancement was $24,000 (75 per cent of provincial portion of the HST on the first $400,000 of new home/rental unit value).

The enhanced Ontario NHR and NRRPR provide for a rebate of 100 per cent of the provincial portion of the HST on eligible new homes and eligible rental units valued up to $1 million, for up to $80,000 in provincial relief per eligible new home/rental unit. This $80,000 maximum rebate amount  applies to eligible new homes and eligible rental units valued above $1 million and up to $1.5 million. For eligible new homes and eligible rental units valued between $1.5 million and $1.85 million, the maximum rebate amount decreases in a linear manner until it reaches $24,000.

For new homes and rental units valued at or above $1.85 million, an Ontario NHR or NRRPR of $24,000 is available.

Ontario is providing additional top-up relief equivalent to up to the full 5 per cent federal portion of the HST on eligible new homes and eligible rental units valued up to $1 million, which provides up to $50,000 per eligible new home/rental unit. This $50,000 maximum top-up amount applies to eligible new homes and eligible rental units valued above $1 million and up to $1.5 million. For eligible new homes and eligible rental units valued between $1.5 million and $1.85 million, the top-up amount decreases in a linear manner until it reaches $0. The top-up amount is reduced by any rebates for the federal portion of the HST that a claimant is entitled to claim under the Excise Tax Act (Canada).

Eligibility for the Ontario top-up is based on meeting the eligibility requirements for the enhanced Ontario NHR and NRRPR, as generally described in this backgrounder, and receiving the rebate.

Enhanced New Housing Rebate

As is the case with Ontario's NHR, situations in which an individual may be eligible for the enhanced Ontario NHR include:

Eligible home types generally include a detached or semi-detached single unit house, a duplex, a residential condominium unit, a townhouse, a rowhouse, a unit in a cooperative housing corporation, a mobile home (including a modular home), and a floating home.

As is the case with Ontario's NHR, the enhanced Ontario NHR is only applicable to homes for use as the individual’s primary place of residence or the primary place of residence of a “relation” of the individual.

New Homes Purchased from a Builder

The enhanced Ontario NHR allows an individual to recover up to $80,000 of the provincial portion of the HST paid in respect of a new or substantially renovated home purchased from a builder.

If an individual otherwise qualifies for Ontario's NHR in respect of a home purchased from a builder, the enhanced Ontario NHR is generally available if:

  • the agreement of purchase and sale for the home was entered into between the individual and the builder on or after April 1, 2026, and on or before March 31, 2027; and
  • the construction or substantial renovation of the home

Owner-Built Homes

The enhanced Ontario NHR allows an individual to recover up to $80,000 of the provincial portion of the HST they paid to build a home on land they own or lease or to substantially renovate their home.

If an individual otherwise qualifies for Ontario's  NHR in respect of an owner-built home, the enhanced Ontario NHR is generally available if the construction or substantial renovation of the home:

  • begins on or after April 1, 2026, and on or before March 31, 2027; and
  • is substantially completed on or before December 31, 2029.

Shares of a Cooperative Housing Corporation

The enhanced Ontario NHR allows an individual to claim a rebate of up to $80,000 of the provincial portion of the HST paid in respect of the purchase of a share of a cooperative (co-op) housing corporation that entitles the individual to the possession of new or substantially renovated co-op housing.

If an individual otherwise qualifies for Ontario's NHR in respect of the purchase of a share of co-op housing corporation, the enhanced Ontario NHR is generally available if:

  • the agreement of purchase and sale for the share was entered into between the individual and the co-op on or after April 1, 2026, and on or before March 31, 2027; and
  • the construction or substantial renovation of the home
    • begins on or before December 31, 2028, and
    • is substantially completed on or before December 31, 2031.

Interaction with Ontario First-Time Home Buyers’ Rebate

On October 28, 2025, Ontario announced its intention to offer a rebate of the full 8 per cent provincial portion of the HST for first-time home buyers on new homes.

An individual who is eligible for the Ontario first-time home buyers’ rebate and for the enhanced Ontario NHR (e.g., a first-time home buyer that entered into an agreement of purchase and sale for a new home on or after April 1, 2026 and on or before March 31, 2027) is permitted to claim either or both Ontario rebates, but the total amount of all Ontario rebates for the 8 per cent portion of the HST that may be claimed by any individuals in respect of a transaction is limited to the lesser of $80,000 and the amount of the 8 per cent provincial portion of the HST payable in respect of that transaction.

Enhanced New Residential Rental Property Rebate

As is the case with Ontario's NRRPR, situations where a person that is a landlord may be eligible for the enhanced Ontario NRRPR include:

  • the purchase of a new or substantially renovated residential complex to rent for long-term residential use from a builder; or
  • the building, or hiring someone else to build, a residential complex to rent for long-term residential use on land the person owns or leases.

The enhanced Ontario NRRPR applies to a residential complex differently depending on whether the construction or substantial renovation of the residential complex begins on or before March 31, 2026, or on or after April 1, 2026.

Construction Begins on or Before March 31, 2026

The enhanced Ontario NHR may allow a person that purchases a new or substantially renovated residential complex that is a “single-unit residential complex” or a “residential condominium unit”, in respect of which construction or substantial renovation began on or before March 31, 2026, to recover up to $80,000 of the provincial portion of the HST paid in respect the purchase.

As is the case with Ontario's NRRPR, a “single-unit residential complex” generally includes a detached or semi-detached single unit house, a duplex, a townhouse or a rowhouse.

If the purchaser otherwise qualifies for Ontario's NRRPR in respect of a taxable supply by way of sale of a residential complex (other than a supply deemed under section 191 of the federal Excise Tax Act to have been made and received), the enhanced Ontario NRRPR is generally available in respect of the residential complex if:

  • the residential complex is a “single-unit residential complex” or a “residential condominium unit”;
  • the construction or substantial renovation of the residential complex began on or before March 31, 2026;
  • the agreement of purchase and sale for the residential complex was entered into with the builder on or after April 1, 2026, and on or before March 31, 2027; and
  • the construction or substantial renovation of the residential complex is substantially completed on or before December 31, 2029.

Construction Begins on or After April 1, 2026

The enhanced Ontario NRRPR may allow a person that purchases or builds a residential complex, or an addition to a residential complex, in respect of which construction or substantial renovation begins on or after April 1, 2026, to recover up to $80,000 of the provincial portion of the HST in respect of each eligible rental unit that forms part of the residential complex.

If the person otherwise qualifies for Ontario's NRRPR in respect of a residential complex or addition to a residential complex, the enhanced Ontario NRRPR is generally available in respect of the residential complex if the construction or substantial renovation:

  • begins on or after April 1, 2026 and on or before March 31, 2027; and
  • is substantially completed on or before December 31, 2029.

Land Leased for Residential Purposes

Consistent with the Ontario NRRPR, certain leases of land for residential purposes are eligible for an enhanced Ontario NRRPR with modified thresholds compared to those applicable to other transactions eligible for the enhanced relief.

The enhanced Ontario NRRPR for leased land generally provides for a rebate of up to $26,400 (e.g., 100 per cent of the 8 per cent provincial portion of the HST for certain leases of land for residential purposes with a fair market value up to $330,000). This $26,400 maximum rebate amount is maintained for certain leases of land for residential purposes (based on a fair market value above $330,000 and up to $495,000).

The $26,400 maximum rebate amount decreases in a linear manner for certain leases of land for residential purposes (fair market value between $495,000 and $610,500) until it reaches $7,920. For land leased for residential purposes with a fair market value above $610,500, a rebate of up to $7,920 continues to be available.

A person may be eligible for the rebate if they make an exempt supply of land that results in a deemed supply and that is:

  • A lease of land, other than a site in a residential trailer park, that provides continuous possession for a person in occupation or possession of a residential unit affixed to that land and used as a place of residence for individuals.
  • A lease of a site in a residential trailer park for a person in occupation or possession of a mobile home, travel trailer, motor home or similar vehicle or trailer.

The deemed supply must be made on or after April 1, 2026 and on or before March 31, 2027.

Tax Payable By

For both the enhanced Ontario NHR and the enhanced Ontario NRRPR, tax needs to become payable no later than December 31, 2032.

Assignment Sales

If, under an assignment sale, a person (the assignee) assumes the rights and obligations of another person that is a purchaser of a new home (the assignor) under an agreement of purchase and sale with a builder, an enhanced Ontario NHR or NRRPR is only available if:

  • Both the original agreement of purchase and sale and the assignment agreement were entered into on or after April 1, 2026 and on or before March 31, 2027; and
  • All other eligibility criteria in relation to the rebate’s application to the specific transaction are met.

Limitations

Specific rules limit the availability of the enhanced Ontario rebates in certain circumstances to ensure that the enhanced Ontario rebates apply as intended. These rules would be similar to rules that accompanied the introduction of the GST/HST First Time Home Buyers’ Rebate.

Claiming an Enhanced Rebate for the 8 per cent Portion of the HST

When you purchase a new home from a builder, the builder may pay or credit the total amount of certain GST/HST rebates that you are entitled to claim directly to you so that you do not have to apply to the Canada Revenue Agency directly and wait to receive your rebate.

Builders will not be able to pay or credit the enhanced Ontario NHR for homes where GST/HST became payable before federal regulations that implement the enhanced Ontario NHR were made on June 12, 2026.

The builder will not be able to credit the enhanced Ontario NRRPR (as is the case with the existing GST/HST NRRPR and Ontario NRRPR).

If GST/HST became payable before the federal regulations were made, eligible purchasers will need to:

  • pay the GST/HST at closing; and
  • apply for the enhanced Ontario NHR directly with the Canada Revenue Agency.

In any case, an eligible purchaser or builder of a residential property will be able to apply for the enhanced Ontario NHR or NRRPR with the Canada Revenue Agency after June 12, 2026.

It is expected that the Canada Revenue Agency will release updated rebate application forms for the enhanced Ontario NHR and NRRPR by mid-July.

Claiming Provincial Relief Related to the 5 per cent Portion of the HST

Relief related to the 5 per cent federal portion of the HST has been implemented under the Retail Sales Tax Act. Details on the administration of the relief related to the 5 per cent federal portion of the HST will be made available at the earliest possible opportunity.

To be eligible for the Ontario top-up, individuals must qualify for and receive the 8 per cent enhanced Ontario NHR or NRRPR, either directly or through a builder credit.

While applications for the HST relief are not yet open, builders and purchasers who meet the eligibility criteria will be able to apply once the program launches.

Ontario continues to work closely with the federal government to support timely implementation, with updated federal forms expected to be available by mid-July.

The updated form will include consent to share contact, banking, and rebate information with Ontario, and no separate provincial application will be required.

More information from the CRA: Ontario Temporary Enhanced New Housing Rebate: Situations that involve purchasing a home from a builder - Canada.ca

Updated: June 24, 2026
Published: March 26, 2026