What to know
- The Government of Ontario plans to remove the full 13 per cent HST on new homes up to $1.5 million, with rebates up to $130,000 and scaled reductions for higher-priced homes.
- If approved, the temporary measure could deliver $2.2 billion in relief and is expected to support thousands of new housing starts and jobs.
- The province also announced a $300-million investment through the Building Ontario Fund to convert GTA condos into long-term housing, including below-market units to improve affordability.
Ontario Premier Doug Ford’s government is looking to expand Harmonized Sales Tax (HST) rebates to all eligible buyers of new homes in the province.
As part of its 2026 Budget which will be unveiled on Thursday, the provincial government announced on Wednesday it is proposing to remove the full 13 per cent HST for all buyers of new homes up to $1.5 million, which will be eligible for a rebate of up to $130,000.
The rebate will also apply to homes above $1.5 million, but its maximum value will be decreased proportionately from $130,000, reaching a maximum of $24,000 for homes valued at or above $1.85 million.
The measure is an expansion of the province’s previous HST rebate announced last fall, which allowed first-time home buyers acquiring new homes under $1 million to receive a rebate of the eight per cent provincial portion of the HST.
If passed, it will provide rebates for all eligible buyers for one year, starting April 1 and ending March 31, 2027, as the government estimates it will provide nearly $2.2 billion in relief in total.
The proposal will also be supported by the federal government, which is cost-sharing Ontario’s housing initiatives and covering its five per cent portion of the HST.
According to Ford, the measure aims to provide relief for home buyers in the province amid global economic uncertainty and rising costs.
“For most families in Ontario, buying a home is the biggest financial decision they will make in their lives, but for too many families the dream of home ownership is being pulled out of reach by high costs and economic uncertainty. One of the biggest factors in the increased cost of housing is government taxes, and fees, and development charges that add hundreds of thousands of dollars to the cost of a new home,” Ford told reporters.
The province also says the rebate could stimulate 8,000 housing starts next year, boosting GDP growth by $2.7 billion and supporting up to 21,000 jobs.
Citing Mississauga Mayor Carolyn Parrish, Brampton Mayor Patrick Brown, Vaughan Mayor Steven Del Duca and Barrie Mayor Alex Nuttall, Ford also called on more municipal leaders across the province to also introduce measures to reduce development and housing costs.
“We’re doing our part by cutting taxes and fees and investing in housing and enabling infrastructure, but we need you to step up too…[Some mayors] have been true leaders in removing or reducing development charges, but we need more mayors to follow [their] lead and cut these costly fees that add hundreds of thousands of dollars to the cost of new homes. So, let’s get building and help more families find a home that meets their needs and their budgets,” he added.
@nowtoronto #Ontario Premier Doug Ford’s government is looking to expand Harmonized Sales Tax (HST) rebates to all eligible buyers of new homes in the province. #realestate ♬ sonido original – Now Toronto
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Ontario supporting affordable home conversions in the GTA
The additional HST rebates are not the only housing-related measures announced by Ford’s government this week.
On Tuesday, the province also announced a $300-million investment in its Building Ontario Fund to support the construction of 2,200 condo units in the Greater Toronto Area (GTA) into long-term housing.
From these 2,200 homes, the province says about 550 would have their rents set at 25 per cent below-market rates or lower than 30 per cent of the median household income in the region, whichever is lower.
Similar to the HST rebates, this measure also aims to support economic relief and housing affordability in the province.
“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,” Ontario’s Minister of Finance Peter Bethlenfalvy said in a statement.
According to the province, the $300-million initiative will also be supported by private investment firm High Art Capital.
More information about both initiatives will be revealed with the province’s 2026 Budget, which will be unveiled on Thursday.
