The Ontario government is taking steps to temporarily provide relief on the full 13 per cent Harmonized Sales Tax (HST) on new homes valued up to $1 million. This would provide a maximum relief amount of up to $130,000.
This backgrounder provides a brief description of the eligibility criteria for the enhanced relief. The enhanced relief is subject to federal regulatory amendments and would generally apply to the same types of housing and follow the same eligibility conditions as Ontario’s existing HST New Housing Rebate (NHR) and New Residential Rental Property Rebate (NRRPR), subject to some additional conditions.
The HST and any associated relief enacted through federal legislation or regulations are administered federally by the Canada Revenue Agency.
Further details on the enhanced relief will be made available on this webpage in the coming days.
Homes Used as Primary Place of Residence
As is the case with Ontario’s existing NHR, you may be eligible for the enhanced relief if you buy a new home from a builder or you build, or hire someone else to build, a home on land you own or lease. An eligible home would generally include a detached or semi-detached house, a condominium unit, a townhouse or a rowhouse purchased or built for use as your primary place of residence.
New Homes Purchased from a Builder
For a new home purchased from a builder, the enhanced relief would generally be available if:
- the agreement of purchase and sale for the home was entered into with the builder on or after April 1, 2026, and on or before March 31, 2027; and
- construction of the home begins on or before December 31, 2028, and the home is substantially completed on or before December 31, 2031.
Owner-Built Homes
For an owner-built home, the enhanced relief would generally be available if construction of the home begins on or after April 1, 2026, and on or before March 31, 2027, and the home is substantially completed on or before December 31, 2029.
Long-Term Residential Rental Properties
As is the case with Ontario’s existing NRRPR, you may be eligible for the enhanced relief if you buy a new residential property from a builder or you build, or hire someone else to build, a residential property on land you own or lease to rent for long-term residential use by individuals as their primary place of residence.
Construction Begins on or Before March 31, 2026
In the case of construction that begins on or before March 31, 2026, the enhanced relief would only apply to purchases of single-unit homes that are to be rented out to a long-term residential tenant.
An eligible single-unit home would generally include a detached or semi-detached house, a condominium unit, a townhouse or a rowhouse.
The enhanced relief would generally be available if:
- the agreement of purchase and sale for the home was entered into with the builder on or after April 1, 2026, and on or before March 31, 2027; and
- construction of the home begins on or before March 31, 2026, and the home is substantially completed on or before December 31, 2029.
Construction Begins on or After April 1, 2026
In the case of construction of a residential property that begins on or after April 1, 2026, the enhanced relief would generally be available if construction of the residential property begins on or after April 1, 2026, and on or before March 31, 2027, and the residential property is substantially completed on or before December 31, 2029.
Limitations
To ensure that the enhanced relief is only available as intended (e.g., to agreements entered into on or after April 1, 2026), a series of rules may apply to limit the availability of the enhanced relief in certain circumstances.
Disclaimer
This backgrounder is intended to provide high-level information respecting a potential change to the HST in the Province of Ontario under the Excise Tax Act (Canada). This should not be regarded as a replacement of the federal laws, regulations or administrative documents to which it refers.