The province, in partnership with the federal government, is planning to temporarily expand the 13 per cent Harmonized Sales Tax (HST) break to all buyers of newly built properties in Ontario and not just first-time homebuyers.
The rebate would apply to eligible buyers of new homes valued at $1 million or less, for a maximum rebate of $130,000.
“Ontario’s proposal would strengthen the existing provincial HST New Housing Rebate and New Residential Rental Property Rebate for one year, from April 1, 2026, to March 31, 2027, temporarily removing the HST for eligible buyers of qualifying new homes,” a government release states.
To qualify for the rebate, the new home must be used a primary residence or a residential rental property.
The maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million and then decrease proportionally to a maximum of $24,000 to anything more than $1.85 million.
“No matter if you’re a first-time homebuyer, second or a 10-time buyer, you’re getting the HST deducted,” Premier Doug Ford said at a news conference on Wednesday, alongside Finance Minister Peter Bethlenfalvy and Housing Minister Rob Flack.
The province said it will be including this rebate in the budget, which is set to be tabled in the legislature on Thursday, and that further details would be released at that time.
A reduced rebate would be available for new homes valued at or above $1.5 million.
“Higher-valued new homes that would have qualified for the maximum rebate of $24,000 under the current rules will qualify for at least that amount under the expansion,” according to the release.
The province said the federal government has agreed to cost-share the rebate with Ontario, “subject to passage of federal legislation, which would approximately cover the federal five per cent portion of the HST that is being removed from new homes in Ontario.”
According to the province, the partnership with the federal government would provide Ontario with almost $2.2 billion in total joint tax relief for housing.
The Ford government said it hopes the rebate expansion will lead to 8,000 additional housing starts in the province in 2027, creating more than 20,000 construction jobs and boosting Ontario’s GDP growth by $2.7 billion.