Ontario Removes Full 13% HST on New Homes — Save Up to $130,000 Before the Window Closes

What Happened & When

Premier Doug Ford announced the plan today at a news conference in Mississauga, saying the full 13% HST will be removed for new homes valued up to $1 million from April 1, 2026 to March 31, 2027 — a one-year window. The full details will be included in the 2026 Budget, which is being unveiled tomorrow, March 26.

The Evolution: How We Got Here

This didn't come out of nowhere. There's a timeline:

1. May 2025 — The newly elected federal government proposed eliminating the GST on new homes up to $1 million for first-time buyers only.
2. October 2025 — Ontario announced it would match that by rebating the full 8% provincial HST for first-time buyers of new homes up to $1 million.
3. March 12, 2026 — Bill C-4 (the Making Life More Affordable for Canadians Act) received Royal Assent, officially passing the federal first-time buyer GST rebate into law.
4. Today, March 25, 2026 — Ontario went further and expanded the rebate to ALL buyers, not just first-timers.

The Numbers — What You Actually Save

Under the plan, buyers of new homes valued up to $1 million will receive a maximum rebate of $130,000, covering both the provincial and federal portions of HST. That full $130,000 rebate extends to homes priced up to $1.5 million, then phases down to $24,000 for homes priced at $1.85 million and above.

Here's how the savings break down by price:

Home PriceHST RebateUp to $1M$130,000 (full 13%)$1M – $1.5M$130,000 (still maximum)$1.5M – $1.85MScales down proportionally$1.85M+$24,000 (existing rebate)

Who Is Paying For This?

Ontario covers the 8% provincial share, while Ottawa covers the 5% federal share, subject to passage of federal legislation. The province estimates it will provide nearly $2.2 billion in total relief, with Ontario's cost alone coming to almost $1.4 billion in lost revenue.

Who Qualifies?

This is the big upgrade from the fall announcement. The new proposal targets market activity across the new-home spectrum, including investors purchasing residential rental units, so long as the end use meets the province's occupancy conditions.

Key eligibility rules:

• Purchase agreement must be signed with a builder between April 1, 2026 and March 31, 2027
• The home must be used as a primary residence OR residential rental property
• Construction must begin before March 31, 2026 for investor-purchased units (existing inventory), with the agreement signed in that same one-year window
• Construction timelines extend to as late as 2031 in some cases

Important nuance for investors: The province's briefing document suggested that only investors who purchase homes from the largely existing unsold stock of new properties — not newly launched construction units — would be eligible for the tax rebate. The document specifies that an investor would need to buy a new home where construction began before March 31, 2026.

Why Did the Government Do This?

Ontario's new-home market has been under serious pressure, with housing starts at multi-decade lows. New-home sales in 2025 ended as the worst year on record in the GTA. Housing researcher Mike Moffatt explains that HST is charged only on new homes, not resales, making new builds appear less competitive — expanding the rebate helps narrow that gap.

According to RESCON's analysis, taxes, fees, and levies currently make up about 36% of the total cost of a new home in Ontario. This rebate directly attacks that.

Economic Impact Projections

The expanded 13% HST rebate is projected to stimulate an additional 8,000 housing starts in Ontario, support up to 21,000 jobs, and boost Ontario's GDP growth by $2.7 billion.

Bonus: $300M Condo Investment

The province also announced a $300-million investment through the Building Ontario Fund to convert 2,200 GTA condo units into long-term housing, with about 550 of those units set at 25% below-market rents