Buying a new home in Ontario typically includes paying HST — the Harmonized Sales Tax combining 5% federal GST and 8% provincial PST. But many new home buyers qualify for significant HST rebates that can recover thousands of dollars.
This guide explains the Ontario new housing HST rebate, how to calculate it, and how to claim it.
What Is the Ontario New Housing HST Rebate?
The Ontario New Housing Rebate is a partial refund of the HST paid on a newly constructed home. It consists of two parts:
- Federal GST/HST New Housing Rebate — administered by CRA
- Ontario New Housing Rebate — administered provincially through CRA
Together, they can provide a rebate on a significant portion of the HST you paid on your new home purchase.
Who Qualifies for the Ontario HST Rebate?
To qualify for the Ontario HST new housing rebate, you generally must:
- Purchase a new or substantially renovated residential property
- Intend to use it as your primary place of residence (or a close relative's primary residence)
- Have a purchase price below the qualifying threshold
- Be an individual (not a corporation) purchasing for personal use
The rebate applies to:
- New construction homes purchased from a builder
- Owner-built homes
- Substantially renovated homes
- Mobile homes and floating homes
Eligibility Checklist
Before applying, confirm you meet all of the following:
- The property is newly constructed or substantially renovated (not a resale)
- You (or a close relative) will occupy it as a primary residence
- You are an individual, not a corporation or partnership
- You paid HST on the purchase (builder-assigned rebates count)
- You are applying within 2 years of closing/possession date
- The property is located in Ontario
- You have your closing documents, purchase agreement, and HST receipts
HST Rebate Calculator: Ontario New Homes
For homes purchased at $450,000 or less:
The maximum federal GST/HST rebate is $6,300 (36% of the 5% GST component).
The Ontario provincial rebate is 75% of the Ontario component (8% portion), to a maximum of $24,000.
For homes between $350,000 and $450,000:
The federal rebate phases out between $350,000 and $450,000. Ontario's provincial rebate does not phase out at the same thresholds — it applies to the Ontario component regardless of price, up to the maximum.
For homes over $450,000:
The federal GST/HST New Housing Rebate is not available. However, the Ontario provincial component rebate may still apply if the property qualifies.
Rebate Examples at Different Price Points (Standard Rules)
The following table shows the standard HST rebate that applies to purchase agreements signed before April 1, 2026 (or after the temporary enhanced program ends):
| Purchase Price | HST (13%) | Federal Rebate | Ontario Rebate | Total Rebate | Net HST Paid |
|---|---|---|---|---|---|
| $300,000 | $39,000 | $6,300 | $18,000 | $24,300 | $14,700 |
| $350,000 | $45,500 | $6,300 | $21,000 | $27,300 | $18,200 |
| $400,000 | $52,000 | ~$3,150 | $24,000 | ~$27,150 | ~$24,850 |
| $450,000 | $58,500 | $0 | $24,000 | $24,000 | $34,500 |
| $600,000 | $78,000 | $0 | $24,000 | $24,000 | $54,000 |
| $800,000 | $104,000 | $0 | $24,000 | $24,000 | $80,000 |
Key takeaway: The Ontario provincial rebate ($24,000 max) applies at all price points. The federal rebate ($6,300 max) phases out linearly between $350,000 and $450,000 using the formula: $6,300 × ($450,000 − purchase price) / $100,000. For homes under $350,000, buyers save up to $30,300 total.
Note: These are estimates based on the standard rebate rules. Use the CRA's official rebate calculator for your specific situation.
2026 Enhanced HST Rebate: Up to $130,000 (Temporary Program)
On March 25, 2026, Ontario announced a temporary enhanced HST rebate in partnership with the federal government. For purchase agreements signed between April 1, 2026 and March 31, 2027, the full 13% HST may be rebated on qualifying new homes:
| Home Price | Maximum Rebate |
|---|---|
| Up to $1,000,000 | Up to $130,000 (full 13% HST) |
| $1,000,000 – $1,500,000 | Flat $130,000 |
| $1,500,000 – $1,850,000 | Declining from $130,000 to $24,000 |
| Over $1,850,000 | Standard $24,000 Ontario rebate only |
The $130,000 maximum consists of up to $80,000 from Ontario (8% provincial portion) and up to $50,000 from the federal government (5% GST portion).
Eligibility requirements:
- Purchase agreement signed between April 1, 2026 and March 31, 2027
- Construction must begin by December 31, 2028
- Home must be substantially completed by December 31, 2031
- Available to all buyers (not limited to first-time buyers)
- Also applies to qualifying new residential rental properties
Important: As of May 2026, the enhanced rebate is based on the Ontario 2026 Budget and the federal government's agreement to participate, but the required amendments to the federal Excise Tax Act have not yet received Royal Assent. Confirm the status of this program with your lawyer or tax advisor before relying on it in your purchase decision.
New Residential Rental Property Rebate (NRRP)
If you're purchasing a new home to rent out rather than live in, you don't qualify for the personal-use rebate. However, you may qualify for the New Residential Rental Property (NRRP) Rebate if:
- The property is intended for long-term residential rental (not short-term like Airbnb)
- You are registered for HST
- The unit is a qualifying residential unit
The NRRP rebate works similarly to the personal-use rebate and can recover a significant portion of the HST paid.
How to Claim the Ontario HST Rebate: Step by Step
Option A: Builder handles it at closing (most common)
Most builders include the rebate in the purchase price and submit the paperwork on your behalf. You sign an assignment form, the builder reduces your price by the rebate amount, and they file the claim with CRA.
Option B: You file the claim yourself
If you're building your own home, doing a substantial renovation, or your builder did not handle it:
- Gather your documents: Purchase agreement, Statement of Adjustments, proof of occupancy, and all HST receipts
- Complete Form GST190 — GST/HST New Housing Rebate Application (Federal portion)
- Complete Form RC7190-ON — Ontario Rebate Schedule (provincial portion)
- Submit both forms to CRA — mail to the Summerside Tax Centre or submit through your tax professional
- Wait for processing — CRA typically processes rebate claims in 4-8 weeks
- Receive your rebate — by cheque or direct deposit if you're set up for it
Deadline: Applications must be filed within two years of the closing date or the date you first occupied the home (whichever is earlier). Do not miss this deadline — there are no extensions.
Ontario HST and Assignment Sales
If you purchased a pre-construction condo and later sold your assignment before closing, HST rules are complex. Assignment sales by original buyers may be subject to HST. This is an area where professional advice is strongly recommended.
Key Dates for HST Rebate Claims
The Ontario HST rebate is not a filing deadline you track annually — it's a one-time claim tied to your closing date. However, the two-year deadline from your closing date is critical.
For ongoing HST/GST remittance deadlines for your business, see our When Is HST Due in Canada guide.
For other recurring HST/GST deadlines for your business, use the free AINative Tax Deadline Calculator to track quarterly and annual HST remittance dates.
Frequently Asked Questions
Does the rebate apply to resale homes? No. The Ontario new housing HST rebate applies only to newly constructed or substantially renovated properties. Resale homes are not subject to HST and therefore do not qualify for the rebate.
Can I claim the rebate on a vacation property? No. The rebate requires the home to be your primary place of residence or a close relative's primary place of residence.
What if the builder already included the rebate in my price? In most builder purchases, the rebate is already factored into the listed price. Confirm with your lawyer or real estate agent whether the rebate is assigned to the builder or retained by you.
If you're selling a property and facing capital gains, see our Canadian Capital Gains Tax Calculator guide to understand your tax liability. For help tracking all your CRA deadlines, explore the best AI tools for Canadian accountants.
Important Disclaimer
HST rebate rules are complex and depend on your specific circumstances. Always verify your eligibility with a qualified tax professional or lawyer before closing. This guide is for informational purposes only and does not constitute tax advice.
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