Ontario to scrap HST on new homes up to $1M in temporary affordability push

 

Posted March 25, 2026​

 

The Ontario government says it will remove the full 13 per cent Harmonized Sales Tax on new homes priced up to $1 million for eligible buyers, part of a temporary measure in its upcoming 2026 budget aimed at boosting affordability and housing supply.

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The proposed rebate, worth up to $130,000, would also apply in full to homes valued up to $1.5 million. For higher-priced homes, the rebate would be scaled down, declining from $130,000 at $1.5 million to a maximum of $24,000 for homes valued at $1.85 million and above.

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The measure would run for one year, from April 1, 2026, to March 31, 2027, and expand on existing provincial and federal rebates for first-time buyers.

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The province estimates the tax relief, delivered in partnership with the federal government, would total nearly $2.2 billion, with Ottawa expected to cover the five per cent federal portion of the HST, subject to legislative approval.

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The government also said it would align the effective date of its HST rebate for first-time homebuyers with a proposed federal change to March 20, 2025.

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In addition, Ontario plans to remove the eight per cent provincial portion of the HST on qualifying purpose-built rental housing, part of a broader effort to increase housing supply.

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Story aided by AI.