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Summary: The HST (Harmonized Sales Tax) new housing rebate refunds part of the 13% HST you pay on a new build in Ontario. The standard rebate maxes out near $30,300, but under expanded federal and provincial rules running from 2025 through 2027, eligible buyers can recover up to $130,000 on new homes valued up to $1.5 million.
What is the new housing HST rebate?
The new housing HST rebate is a combined federal-and-provincial refund of part of the 13% HST charged on newly built or substantially renovated homes in Ontario. It exists to soften the tax owner-occupants pay when they buy from a builder rather than buying resale.
Resale homes are generally HST-exempt, which is why most resale buyers never deal with this rebate. New construction is different. On a $700,000 condo or townhouse, the 13% HST equals roughly $91,000 of embedded tax, and the rebate returns a meaningful portion of that.
How much can you claim under the standard rebate?
The standard rebate has two components, applied whenever the home is purchased as a primary residence. Combined, they can return about $30,300 at the lower end of the price range, or $24,000 once the price exceeds $450,000.
The federal portion refunds 36% of the 5% GST (Goods and Services Tax), up to $6,300. The full amount is available on homes priced at $350,000 or less and phases out by $450,000, after which the federal rebate is zero.
The Ontario provincial portion refunds 75% of the 8% provincial component of the HST, up to $24,000. That maximum is reached at roughly $400,000 and continues to apply at higher prices, as long as the home is the buyer's primary residence.
To qualify under the standard rules, the home must be:
Newly built or substantially renovated. Resale homes do not qualify because HST is not charged at all.
Used as a primary residence. The buyer or a qualifying relative must live in the home; rentals and flips fall under different rules.
Located in Ontario. The provincial portion is Ontario-specific, though the federal portion exists across Canada.
This is the rebate that has been in place for years. What changed recently sits on top of it.
What changed for first-time buyers in 2025 and 2026?
Two layers of expanded relief now sit alongside the standard rebate. Together they can reduce HST on a new home close to zero for eligible buyers within a defined window.
At the federal level, Bill C-4 received Royal Assent in March 2026, with eligibility retroactive to agreements of purchase and sale entered into on or after March 20, 2025. The First-Time Home Buyers' GST Rebate eliminates the full 5% federal GST on new homes valued up to $1 million for eligible first-time buyers, with a linear phase-out between $1 million and $1.5 million.
The maximum federal saving is $50,000, and the program runs through the end of 2030. Eligibility details are published on the CRA's first-time home buyers' GST/HST rebate page.
At the provincial level, the Ontario government announced on March 25, 2026 that it would temporarily remove the full 8% provincial portion of the HST for eligible buyers of new homes valued up to $1 million, providing up to $80,000 in provincial relief.
The window covers agreements of purchase and sale signed between April 1, 2026 and March 31, 2027. Combined with the federal program, eligible buyers can recover up to $130,000 in total HST relief on a new home valued up to $1.5 million.
| Standard rebate | Expanded 2025–2027 rebate |
Federal cap | $6,300 (phased out by $450,000) | $50,000 (full to $1M, phase-out to $1.5M) |
Provincial cap | $24,000 | Up to $80,000 |
Who qualifies | Any owner-occupant of a new build | Eligible buyers under federal and Ontario rules during the window |
Eligibility window | Ongoing | APS signed April 1, 2026 to March 31, 2027 |
Maximum combined relief | ~$30,300 | Up to $130,000 |
The expanded rules are time-limited. A buyer signing an APS (Agreement of Purchase and Sale) one week before or after the window will see very different rebate amounts on the same property.
How do you claim the rebate at closing?
In most new-build purchases, the rebate is handled at closing rather than after. The builder credits the expected rebate against the purchase price upfront, so the buyer pays HST minus the rebate. The builder then assigns the rebate rights to itself and recovers the funds from the Canada Revenue Agency (CRA).
This is reflected on the statement of adjustments your lawyer prepares.
If the builder does not credit the rebate, the buyer pays the full HST at closing and applies to the CRA directly using:
Form GST190. This covers the federal portion of the rebate.
Form RC7190-ON. This covers the Ontario provincial portion.
Supporting documentation. The APS, statement of adjustments, occupancy date confirmation, and proof the home is being used as a primary residence are filed alongside the forms.
Applications must be filed within two years of the closing date. After that, the rebate is no longer claimable.
A real estate lawyer reviews the rebate assignment in the closing documents to confirm the right amount has been credited and that the buyer has signed only what they intended to sign.
What mistakes cost buyers their rebate?
A handful of recurring issues cause buyers to lose part or all of the rebate they expected. Most are avoidable with a careful read of the APS and a clear conversation about how the home will be used after closing.
Renting the home out instead of occupying it. The owner-occupant rebate requires the buyer or a qualifying relative to use the home as a primary residence. A buyer planning to lease the home from day one falls outside this rebate, though a separate New Residential Rental Property rebate exists for that case.
Co-buyers with different residency intentions. Every individual on title must intend to use the home as a primary residence. One non-occupying co-buyer can affect eligibility.
Assignment sales before closing. Selling the APS to another buyer before the home is built changes how HST and the rebate apply, sometimes substantially.
Missing the two-year filing window. When the builder does not credit the rebate at closing, the buyer must file. Forgetting to file removes the option.
For broader context on how this rebate fits with other programs available to new buyers, see Ownright's guide to first-time home buyer incentives in Ontario.
At Ownright, we focus entirely on Ontario residential real estate law. We help homeowners with new-construction closings, resale purchases, refinances, and sales, and we review HST rebate eligibility as part of every new-build file. You can start your closing online or get in touch with any questions.
Frequently asked questions
Do I get the HST rebate automatically?
In most new-build purchases, the builder credits the rebate against the price at closing, so the buyer receives it automatically. If the builder does not credit the rebate, the buyer must apply to the CRA within two years of closing.
Can I claim the expanded rebate on a pre-construction condo I bought before March 2025?
The federal First-Time Home Buyers' GST Rebate applies only to agreements of purchase and sale entered into on or after March 20, 2025. Earlier APSes fall under the standard rebate rules, which cap federal relief at $6,300.
What if I'm buying with a co-purchaser who already owns a home?
You may still qualify. The federal rebate only needs at least one purchaser to be a first-time buyer — but if your spouse or common-law partner has previously owned a home, that disqualifies you.
Does the HST rebate stack with the Land Transfer Tax rebate and FHSA?
Yes. The HST rebate is separate from the Ontario Land Transfer Tax rebate, the Toronto MLTT (Municipal Land Transfer Tax) rebate, the FHSA (First Home Savings Account), and the RRSP Home Buyers' Plan. First-time buyers can use these programs together.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
Legal references: Excise Tax Act, R.S.C. 1985, c. E-15 (HST and the new housing rebate); the First-Time Home Buyers' GST Rebate provisions enacted by Bill C-4, the Making Life More Affordable for Canadians Act (Royal Assent March 2026); and the Ontario Ministry of Finance announcement of the temporary provincial HST rebate on new homes (March 25, 2026).
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
