ONTARIO – Ontario is planning to temporarily expand HST rebates on the purchase of new homes, in a bid to boost a struggling home construction sector.
In a news release Wednesday, the province says it is removing the full 13 per cent of the Harmonized Sales Tax (HST) for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000, as part of the upcoming 2026 Budget.
This maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million, and would decrease proportionally from $130,000 at $1.5 million to a maximum of $24,000 for homes valued at $1.85 million and above, this after the province and federal government’s move to rebate the HST for all first-time buyers of new homes up to $1 million.
The province says the federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, 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.
The partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario.
