GST/HST New Housing Rebate in Ontario: What You Get Back

Two professionals shaking hands across a table in a bright office

Buying in OntarioAug 05, 2026

How to Find a Good Realtor in Ontario

Do You Need a Realtor to Buy a House in Ontario?

First-Time Home Buyer Incentives in Ontario (2026)

Do these rebates apply to my home purchase?

Only if the home is new. Both rebates are for newly built or substantially renovated homes bought from a builder, or homes you build yourself. If you are buying an existing (resale) home, HST was never charged on it in the first place, so there is no HST to rebate. If new construction is not on your radar, our first-time home buyer incentives guide covers what applies to resale purchases instead.

$130,000

the maximum combined federal and provincial HST relief on an eligible new Ontario home, for agreements signed in the 2026-2027 window

What is the GST/HST New Housing Rebate, and how is it different from the new one?

Canada has had a basic GST/HST New Housing Rebate for years. It gives back part of the 5% federal GST (or the federal part of the HST) on a new home, but it is small and it disappears fast: the maximum is $6,300, and it phases out completely once the pre-tax price hits $450,000. In most of the GTA, that rebate is close to useless.

In 2025, the federal government layered a second, much larger rebate on top of it, aimed specifically at first-time buyers.

What is the new First-Time Home Buyers' GST/HST Rebate?

This is the federal program most people mean when they search "new home GST rebate" right now. For a first-time buyer, it eliminates the GST (or the federal 5% part of the HST) entirely on a new home priced at $1 million or less, worth up to $50,000. It phases out on a sliding scale between $1 million and $1.5 million, and disappears above that.

It applies to agreements of purchase and sale signed on or after March 20, 2025, through December 31, 2030, so it is not tied to Ontario's temporary window below. It runs on its own timeline and is available across Canada, not only in Ontario.

What is Ontario's 2026-2027 HST rebate, and who does it apply to?

Ontario introduced its own temporary rebate on top of the federal one. For new homes under agreements signed between April 1, 2026, and March 31, 2027, Ontario rebates up to $80,000 of the provincial 8% part of the HST on a home priced at $1 million or less (with a partial rebate up to $1.5 million). Unlike the federal program, this one is not limited to first-time buyers; it is open to any eligible buyer of a new home in that window.

Common questions

Do I qualify for the GST/HST rebate on a resale home?

No. Resale homes were never charged GST/HST in the first place, so there is nothing to rebate. Both the federal First-Time Home Buyers' GST/HST Rebate and Ontario's 2026-2027 rebate apply only to new construction, homes you build yourself, or substantial renovations bought from a builder.

What counts as a "first-time buyer" for the federal GST rebate?

Generally, you and your spouse or common-law partner cannot have owned and lived in a home, in Canada or anywhere, as your principal residence in the current calendar year or the four preceding years. The rules mirror the FHSA's first-time buyer definition; check the current CRA criteria before assuming you qualify.

Is Ontario's rebate only for homes bought in 2026?

It applies based on when you sign the agreement of purchase and sale, not when the home closes. The agreement has to be signed between April 1, 2026, and March 31, 2027, and the build has to meet the government's construction timelines. A home that closes in 2027 or 2028 can still qualify if the agreement was signed in that window.

Can I get both the federal and Ontario rebates on the same home?

Yes, if you are a first-time buyer, your home is priced at $1 million or less, and your agreement was signed in the 2026-2027 window. That combination is what gets you close to the full $130,000 figure. Outside that window, or if you are not a first-time buyer, you may still qualify for one piece but not both.

Does the rebate come off the purchase price, or do I have to apply for it?

It depends on the builder. Many builders credit the rebate directly, so your purchase price already reflects it. In other cases, you claim it yourself using the CRA's rebate application after closing. Ask your builder which method applies before you assume the number on the price sheet already includes it.

Where can I confirm the current rules before I rely on this?

Rules on new-home rebates change with government budgets, and this is a new, fast-moving program. Confirm your specific numbers with the Canada Revenue Agency, the Government of Ontario, or a real estate lawyer before you count on a figure for your closing.

You might also like