Key Takeaways
- Ontario government announced a full HST rebate for new homes up to $1 million, with a maximum rebate of $130,000.
- Homes priced between $1 million and $1.85 million will receive a flat or declining tax reduction.
- First-time home buyers may also qualify for separate provincial and federal rebates starting March 20, 2025.
In a significant move aimed at improving housing affordability, the Ontario government announced on March 25, 2026, that it will be providing a rebate of the full amount of HST for eligible buyers of new homes valued up to $1 million, with a maximum rebate of $130,000. Homes priced between $1 million and $1.5 million will receive a flat $130,000 sales tax reduction, while homes between $1.5 million and $1.85 million will receive a declining tax reduction from $130,000 to the existing $24,000 provincial reduction. Homes valued over $1.85 million will continue to receive the current $24,000 reduction.
