# MISSISSAUGA The Ontario government is working to reduce costs and help families buy homes by removing the full 13 percent Harmonized Sales Tax for eligible buyers of new homes valued up to $1 million. This means a maximum rebate of $130000 as part of the upcoming 2026 Budget. The maximum rebate of $130,000 will stay the same for new homes valued up to $1.5 million.
For homes priced between $1.5 million & $1.85 million the rebate will gradually decrease from $130,000 to a maximum of $24,000. This builds on the previous provincial and federal initiative to rebate the HST for all first-time buyers of new homes up to $1 million. The federal government has agreed to share costs with Ontario to support provincial housing initiatives pending federal legislation approval. This would cover approximately the federal five percent portion of the HST being removed from new homes in Ontario.
This partnership will provide almost $2.2 billion in total joint tax relief for housing in Ontario. Premier Doug Ford said the government is working closely with the federal government to lower costs for families and keep workers employed during a time of tariffs and economic uncertainty. He stated that the announcement will provide meaningful relief to Ontario residents and help thousands more families achieve homeownership while boosting the provincial economy by $2.7 billion.
Ontario’s proposal will 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. This temporarily removes the HST for eligible buyers of qualifying new homes. New homes valued at or above $1.5 million will receive a reduced rebate. Higher-valued new homes that currently qualify for the maximum rebate of $24,000 will qualify for at least that amount under the expansion. The expanded 13 percent HST rebate could generate an additional 8,000 housing starts in Ontario next year while supporting up to 21000 jobs and boosting provincial GDP growth by $2.7 billion.
Peter Bethlenfalvy the Minister of Finance said that Ontarians have experienced increased costs due to ongoing economic uncertainty. He emphasized the importance of keeping costs down to make life more affordable for families and individuals. The enhancement & expansion of the HST rebates will support home affordability and provide relief to hardworking Ontario families on one of their biggest financial transactions. Ontario is also expanding the HST relief for first-time home buyers on new homes that was announced last fall. The province is 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 April 2026.
Rob Flack the Minister of Municipal Affairs and Housing said that homeownership is a cornerstone of Ontario’s economic success. He stated that Ontario thrives only when its people thrive and that the government is taking this major step forward to protect Ontario by creating conditions to increase construction activity and build more homes faster.
The government is implementing a range of measures to increase the supply of affordable homes & support housing development across Ontario. This includes removing the full eight percent provincial portion of the HST on qualifying purpose-built rental housing. The province is also providing significant housing infrastructure funding through the $4 billion Municipal Housing Infrastructure Program and the $1.2 billion Building Faster Fund.
These programs reward eligible municipalities that make real progress in starting construction on new homes. Additional information about how the government continues to advance its plan to protect Ontario by making it one of the most competitive places to invest & do business in the G7 will be included in the 2026 Budget. The budget will be released on March 26 2026.
