NEWS RELEASE Ontario Expanding HST Rebate to Lower the Cost of New Homes in Partnership with the Federal Government Proposal would save homebuyers up to $130,000, spurring new home construction and keeping costs down for families March 25, 2026 Premier’s Office MISSISSAUGA — The Ontario government is continuing to lower costs and help families realize the dream of homeownership by 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, building on the province and federal government’s previous move to rebate the HST for all first-time buyers of new homes up to $1 million. 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. This partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario. “In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” said Premier Doug Ford. “Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.” 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. For new homes valued at or above $1.5 million, a reduced rebate will be available. 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. The expanded 13 per cent HST rebate could stimulate an additional 8,000 housing starts in Ontario next year, supporting up to 21,000 jobs and boosting Ontario’s GDP growth by $2.7 billion. “Ontarians have seen costs increase as a result of ongoing economic uncertainty, so it is more important than ever that we continue to keep costs down to make life more affordable for families and individuals,” said Peter Bethlenfalvy, Minister of Finance. “With this enhancement and expansion of the HST rebates, we are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives.” In addition to these measures, Ontario is expanding the HST relief for first-time home buyers on new homes announced last fall, taking steps to align the effective date of the provincial HST rebate for first-time home buyers with the federal government’s newly proposed earlier effective date of March 20, 2025. “Homeownership is a cornerstone of Ontario’s economic success,” said Rob Flack, Minister of Municipal Affairs and Housing. “Ontario thrives only when its people thrive. That is why our government is taking this massive step forward to protect Ontario by creating conditions to get more shovels in the ground, build more homes faster and help make the dream of homeownership a reality for more people.” The government is taking action with a suite of measures to help increase the supply of affordable homes, support housing development and foster a robust housing industry across Ontario. This includes removing the full eight per cent provincial portion of the HST on qualifying purpose-built rental housing. The province is also providing historic housing-enabling infrastructure funding through the $4 billion Municipal Housing Infrastructure Program and the $1.2 billion Building Faster Fund, which rewards eligible municipalities that make real progress in getting shovels in the ground to build new homes. More information about how the government continues to make progress on its plan to protect Ontario, by making Ontario one of the most competitive places to invest and do business in the G7 by building a more competitive, more resilient and more self-reliant economy, will be included in the 2026 Budget, to be released on March 26, 2026. Quick Facts Other eligibility requirements for the New Housing Rebate and New Residential Rental Property Rebate would remain the same as under the current rules, including that the purchaser must be acquiring the new home for use as their primary place of residence or as a residential rental property. Further details on the expanded HST rebates for all eligible buyers will be made available following the release of the 2026 Budget. Last October, Ontario announced a proposal to remove the full eight per cent provincial portion of the HST for first-time home buyers of new homes valued up to $1 million, mirroring the proposed federal GST/HST First-Time Home Buyers Rebate which the federal government adopted following months of advocacy from Ontario. Ontario’s proposed changes for first-time home buyers mean both the province and federal government’s rebates would be available if the agreement of purchase and sale for a new home is entered into with the builder on or after March 20, 2025 and on or before December 31, 2030. Ontario will continue working with the federal government on the implementation of the provincial rebate. Ontario is taking action to help speed up the construction of new homes by bringing consistency and transparency to development charges and municipal land use planning and expanding strong mayor powers to more municipalities. Quotes “Today’s announcement reflects what we can accomplish when all levels of government come together with a shared commitment to getting more homes built, faster. Mississauga is growing and projects like this show the real progress happening on the ground. Our government remains focused on making life more affordable, strengthening our economy and ensuring families can build their future in communities they love. I want to thank our partners for helping keep Ontario’s momentum moving in the right direction.” – Nina Tangri Associate Minister of Small Business “As a city, we welcome this important step to make homes more affordable. The provincial government’s HST cut will help turn Mississaugans’ homeownership dreams into reality. We have been doing all we can — through reductions and elimination of development charges — to get more homes built and make them more affordable. We aim to continue setting an example across Ontario. Today’s announcement furthers the necessary, coordinated effort across Canada to address affordability.” – Carolyn Parrish Mayor of Mississauga Additional Resources Ontario Lowering Costs for First-Time Home Buyers Federal Bulletin: First-time home buyers’ (FTHB) GST/HST rebate Media Contacts Hannah Jensen Premier’s Office Hannah.Jensen2@ontario.ca Sarah Chapin Minister Bethlenfalvy’s Office Sarah.Chapin@ontario.ca Scott Blodgett Communications Branch Scott.Blodgett@ontario.ca