Both the provincial and federal governments are removing or reducing the Harmonized Sales Tax (HST) on new homes for one year, beginning April 1, 2026 and ending March 31, 2027. The measure is designed to lower upfront costs for buyers, boost purchasing power and support Ontario’s housing market.
Here’s how it breaks down:
- Homes under $1 million — HST is eliminated entirely (a full 13% saving)
- Homes between $1M and $1.5M — a flat $130,000 tax reduction applies
- Homes between $1.5M and $1.85M — a sliding tax reduction between $130,000 and $24,000 applies
- Homes over $1.85M — the existing $24,000 provincial rebate continues
This applies to newly built homes as well as properties that have undergone substantial renovation, which are treated as new homes for tax purposes.
“This is a major step toward unlocking affordability in Ontario’s housing market,” said Dave Wilkes, President and CEO of the Building Industry and Land Development Association (BILD). “Great news for both new home purchasers and the hundreds of thousands of workers in our industry.”
By improving mortgage qualification outcomes and encouraging new purchases, the measure is also expected to stimulate housing construction and create jobs across the industry.
