03/26/2026
🚨Ontario and federal governments remove the harmonized sales tax (HST) on new homes under $1 million, and reduce the HST on new homes under $1.85 million across the province
Today, Doug Ford, Premier of Ontario, the Hon. Peter Bethlenfalvy, Ontario Minister of Finance, the Hon. Rob Flack, Ontario Minister of Municipal Affairs and Housing, accompanied by Carolyn Parrish, Mayor of Mississauga, announced the removal of the harmonized sales tax on new homes under $1 million and a reduction of the HST for new homes between $1 million and $1.85 million, for all new home buyers, for the next year.
This announcement is a direct reflection and result of BILD and OHBA’s comprehensive and consistent advocacy efforts over the last several months.
Copies of the Ontario/federal government news releases can be accessed here:
https://news.ontario.ca/en/release/1007212/ontario-expanding-hst-rebate-to-lower-the-cost-of-new-homes-in-partnership-with-the-federal-government
This measure will take effect on April 1, 2026, and will run until March 31, 2027.
A full 13 per cent sales tax reduction will apply to new homes with a purchase price under $1 million for all buyers of new homes, and where the home is to be used as their principal residence. The change will provide a flat $130,000 sales tax reduction for new homes between $1 million and $1.5 million, and for amounts between $1.5 million and $1.85 million, a declining tax reduction from $130,000 to the existing $24,000 provincial rebate amount. New homes in excess of $1.85 million will continue to receive the $24,000 provincial rebate.
Only purchases of new homes made on or after April 1, 2026 are eligible for the sales tax reduction/exemption. Per Ontario government officials, the rebate/tax reduction can be signed back to the vendor on the agreement of purchase and sale (APS). The current sales tax rules will continue to apply for existing signed agreements of purchase and sale.
As currently defined within the regulations, substantially renovated new homes are treated as new housing for tax purposes and are included in this new policy measure.
