HST Relief on New Homes in Ontario: Save Up to $130,000
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Ontario has reduced or removed the HST on many new homes for buyers who sign between April 1, 2026 and March 31, 2027. Here is who qualifies, how much you may save, and how we apply the relief at closing. Updated November 3, 2026.
If you sign an agreement to buy a new home in Ontario between April 1, 2026 and March 31, 2027, and it will be your primary residence, you may be eligible for up to $130,000 in HST relief. At Scarlett Homes, eligible buyers can assign the Ontario rebate to us and we credit it on the statement of adjustments at closing.
All eligible buyers, first-time or not
Agreement of purchase and sale signed April 1, 2026 to March 31, 2027
$130,000
A new home that will be your (or a relative’s) primary residence
Credited by us at closing. List prices are already net of HST
What is Ontario's HST relief on new homes?
The 13% HST on a new home is made up of a 5% federal part and an 8% provincial part. For agreements signed in the 2026 to 2027 window, Ontario covers both:
- Ontario Enhanced New Housing Rebate: together with the existing Ontario new housing rebate, covers the 8% provincial part, up to $80,000. It is administered by the Canada Revenue Agency (CRA).
- Ontario New Home Affordability Payment: covers the 5% federal part, up to $50,000. It is paid by the Province of Ontario after the CRA assesses the rebate claim. You do not apply separately, but you must qualify for the provincial rebate and consent to the CRA sharing your information with Ontario, or the payment may be delayed.
Together they add up to as much as $130,000. The relief is now law: Ontario’s HST Relief Implementation Act received Royal Assent on May 12, 2026, and the federal regulations apply back to April 1, 2026.
Who qualifies?
You can qualify if all of the following are true:
- You buy a newly built home from a builder in Ontario.
- You sign the agreement of purchase and sale before March 31, 2027. The signing date is what counts, not the closing date.
- The home will be the primary residence of you or a relative.
- Construction starts by December 31, 2028, is substantially complete by December 31, 2031, and the HST becomes payable by December 31, 2032.
Only one rebate claim can be made per home, even if there are several buyers.
You do not need to be a first-time buyer. First-time buyers can also use the federal First-Time Home Buyers’ GST rebate, but the combined total is still capped at $130,000.
How much can you save?
The relief depends on the price before HST:
| Price before HST | HST relief | Example |
|---|---|---|
| Up to $1,000,000 | The full 13% HST | $800,000 home: $104,000 |
| $1,000,000 to $1,500,000 | $130,000 | $1,200,000 home: $130,000 |
| $1,500,000 to $1,850,000 | Declines from $130,000 to $24,000 | $1,700,000 home: about $69,400 |
| $1,850,000 and over | Regular Ontario rebate only, up to $24,000 | $2,000,000 home: $24,000 |
Examples are illustrative and rounded. Your actual relief depends on the final price (including upgrades and extras, which can move a home across a threshold), your eligibility and the CRA’s decision. The $1,700,000 example is from the Government of Ontario.
How Scarlett Homes applies the relief at closing
For eligible buyers, we credit the Ontario rebate (the 8% part, up to $80,000) on your statement of adjustments at closing, so you do not pay it and then wait for a refund. Our team will explain how the Ontario New Home Affordability Payment (the 5% part, up to $50,000) applies to your purchase, including when it is paid. Here is how it works:
Sign in the window
Sign your agreement of purchase and sale between April 1, 2026 and March 31, 2027. Your closing date can be later.
Assign the rebate
You assign the Ontario rebate to us and sign the CRA rebate forms (GST190 and Form RC7190-ON), including your consent for the CRA to share information with Ontario.
Credited at closing
The rebate shows as a credit on your statement of adjustments. Your lawyer reviews it with you before closing.
What to watch for
- Deadline: Agreements signed before March 31, 2027: an earlier agreement that is amended or assigned does not qualify, and cancelling and re-signing with the same builder generally will not either. You may still qualify for the regular Ontario rebate or the first-time buyer rebate.
- Homes bought to rent out: these do not qualify for this relief. A separate enhanced rental rebate may apply to homes rented long term, and it cannot be credited at closing.
- Price thresholds: the $1 million, $1.5 million and $1.85 million limits are based on the total price before HST, including upgrades and extras.
- Eligibility: the CRA and the Province make the final decision. If relief is credited or paid and you do not qualify, you can be required to repay it, and your agreement may require you to repay us any amount we credited.
What this means if you are buying with us
Because the signing date is what counts, you can sign for a new build at Sheldon’s Gate before March 31, 2027 and still close after the window ends. Our new builds take about 9 to 10 months.
Our move-in-ready and quick-closing homes also qualify when the agreement is signed in the window. Before you sign, our team will give you an estimate for the home you are considering, line by line. Final amounts depend on the final price and your eligibility.
HST relief FAQ
Do I have to be a first-time home buyer?
No. The 2026 to 2027 relief is open to all eligible buyers buying a new home as a primary residence. First-time buyers can combine it with the federal First-Time Home Buyers’ GST rebate, but the total is still capped at $130,000.
Does my closing date have to be before March 31, 2027?
No. What counts is the date you sign the agreement of purchase and sale, which must be between April 1, 2026 and March 31, 2027. Construction must start by the end of 2028 and be substantially complete by the end of 2031.
Can investors get the HST relief?
Not under this relief, which requires the home to be the primary residence of the buyer or a relative. A separate enhanced rental rebate may apply to homes rented long term; speak with your accountant.
How does Scarlett Homes apply the relief?
For eligible buyers who assign the Ontario rebate to us and complete the CRA forms, we credit it on the statement of adjustments at closing. The Ontario New Home Affordability Payment is handled through the Province, and our team will explain the timing for your purchase.
How much is the relief on a $1.2 million home?
For homes priced between $1 million and $1.5 million before HST, the relief is a flat $130,000 for eligible buyers.
Sources
- CRA Notice 346: Ontario Enhanced New Housing Rebate (August 2026)
- Government of Ontario: Ontario New Home Affordability Payment (September 2026)
- CRA Form GST190: GST/HST New Housing Rebate Application (July 2026)
- Bill 114, HST Relief Implementation Act (Residential Property Rebates), 2026 (Royal Assent May 12, 2026)
- CRA: First-Time Home Buyers' GST/HST Rebate
Important: This article is general information as of November 3, 2026, based on publications from the Canada Revenue Agency and the Government of Ontario. It is not legal, tax or financial advice. Eligibility is decided by the Canada Revenue Agency and the Province of Ontario, and the rules may change. Please speak with your lawyer or accountant about your situation. Scarlett Homes credits HST rebates at closing only for eligible purchasers who assign them to us and complete the required forms. Examples are illustrative. Prices and availability are subject to change without notice. E.&O.E.
