Ontario New Home HST Rebate 2026: Who Qualifies for Up to $130,000 in Savings on New Homes Under $1 Million

April 26, 2026 · Glow Pacifier Consulting · ~5 min read

On April 1, 2026, the Ontario government officially implemented a significant policy—full HST rebate on new housing. For a new home under $1 million, the HST portion can be refunded up to$130,000. This is a real savings opportunity for Chinese families and investors looking to buy new homes in Toronto, Markham, and Richmond Hill.

What exactly changed with Ontario's new home HST rebate?

First, understand the old rules. Previously, when buying a home in Ontario, the new home HST rebate had caps: the federal portion maxed out at $6,300 (36% of the 5% GST), and the Ontario portion maxed out at $24,000 (75% of the 8% PST). For homes over $450,000, the rebate gradually decreased, essentially reaching zero above $500,000.

The new policy completely flips this logic. For new homes with contracts signed on or after April 1, 2026, as long as the sale price does not exceed$1M：

• Federal GST portion (5%): Fully refundable, no longer capped at $6,300.
• Ontario PST portion (8%): Fully refundable, no more $24,000 cap.
• Combined, the 13% HST is fully refunded to the buyer.

Who can get the full tax refund, and who only gets a partial one?

Conditions for a full tax refund are clear:

1. Must Be a Newly Built HomeResale homes don't qualify; renovations require major structural rebuild to count as 'new home'.
2. Purchase price not exceeding $1 million(Total price including tax does not exceed $1.13 million).
3. Must Be a Principal ResidenceOr for immediate family members to live in. Purely investment rental properties don't qualify for the full tax rebate—but if you declare it as your primary residence when buying and later rent it out, the CRA will review it after the fact.
4. Buyer Must Be an IndividualBuying a house under a company name does not qualify for this tax credit.
5. For pre-construction condos (pre-sales), the contract signing date must be after April 1, 2026.

What if the home price is just over $1 million? Then it reverts to the old tiered rebate calculation—36% of GST but no more than $6,300, and 75% of PST but no more than $24,000. So buying a home just over $1 million can actually cost you over $100,000 more in taxes than buying one for $999,000. It's important to calculate this before buying.

How much can you actually save on a new $800,000 home?

Let's use real numbers for clarity. Assume you bought a new detached home in Markham with a purchase price of $800,000 (tax-inclusive price $904,000, of which HST is approximately $104,000):

• Under Old Policy: GST refund of $6,300, PST refund of $24,000, for a total refund of $30,300. You effectively pay about $104,000 - $30,300 = Net paid $73,700 HST。
• Under New Policy: $104,000 HST fully refunded. Your actual cost is$0of the HST.

Price Difference Nearly$74KNow for a $500,000 townhouse: under the old policy, you'd get about $24,500 back; under the new policy, it's $65,000—saving you $40,000. For a $1 million new home, HST is roughly $130,000, and it's all refunded—that's where the policy name 'save up to $130,000' comes from.

How do commercial real estate and mixed-use properties apply?

Many business owners consider buying commercial property or mixed-use buildings with storefronts. The rules here are different:

• Pure commercial real estate does not qualify for the new residential HST rebate, but canRegister for GST/HST accountthen apply for Input Tax Credits (ITC). If your company is a GST/HST registrant, the HST paid on a commercial property purchase can be fully claimed back on your next filing.
• For mixed-use properties (commercial downstairs + residential upstairs), the residential portion may qualify for a rebate, while the commercial portion goes through the ITC channel.
• If a business owner buys a new home in their personal name while holding commercial property under their company, both can be used simultaneously.

What does the tax refund application process and timeline look like?

The new home GST/HST rebate is usually applied for by the builder at closing, with the amount deducted directly from the purchase price. In other words, the 'tax-included price' you see when signing the contract is typically already after the rebate. But note:

1. Make sure the builder states in the contract that the HST rebate is included in the price. Some smaller builders do not deduct it upfront, requiring you to file form GST190 yourself.
2. If the builder applies on your behalf, they must submit to CRA within two months of closing. Refunds typically take an additional 4–6 weeks.
3. If you're buying a pre-construction condo, there's a transition period between occupancy closing and final closing. The final tax rebate is based on the policy in effect at final closing.

How to Stack HST Refunds with Other Tax Credits?

The new home HST rebate can be combined with other home-buying incentives:

• Home Buyers' Tax Credit (HBTC)Federal $10,000 non-refundable tax credit in 2026Federal BudgetDiscussed as possibly doubling.
• Home Buyers' Plan (HBP)Withdraw up to $60,000 from your RRSP (or $120,000 for couples) for a down payment, repaid over 15 years.
• Land Transfer Tax Rebate: Ontario and Toronto each have first-time homebuyer land transfer tax rebates—Ontario up to $4,000, Toronto up to $4,475.

Combined, a young family buying a $700,000 new townhouse for the first time can get: HST rebate of $9,100, HBTC tax credit of about $1,500, HBP tax-free RRSP withdrawal, plus full land transfer tax exemption. The total boost to disposable home-buying funds is substantial.

For Chinese business owners consideringApply for a Business LoanExpanding operations while also planning to buy property—combining both financial plans often saves significant tax costs.

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