Ontario temporary HST new-housing rebates

Summary#

These are the final Regulations Amending the New Harmonized Value-added Tax System Regulations, No. 2 (Ontario). They put in place a temporary enhancement to Ontario’s provincial portion of the Harmonized Sales Tax relief for qualifying new homes and rental units for agreements signed between April 1, 2026 and March 31, 2027. The changes are administered by the Canada Revenue Agency (CRA) and are deemed to have come into force on April 1, 2026.

What it does#

• Expands and temporarily increases the provincial rebates for new homes (the Ontario New Housing Rebate (ON NHR)) and for new residential rental property (the Ontario New Residential Rental Property Rebate (ON NRRPR)) for sales or self-supplies tied to agreements signed between April 1, 2026 and March 31, 2027.
• Sets eligibility windows for construction and completion. For many buyers construction must begin before 2029 and be substantially completed before 2032. For some rental cases construction must be substantially completed before 2030, with slightly different start-date rules depending on the situation.
• Raises the amount of provincial HST relief so that, together with existing rebates, qualifying buyers can get:
  • 100% of the 8% Ontario portion of HST off homes valued up to $1,000,000;
  • up to $80,000 total relief for homes between $1,000,000 and $1,500,000;
  • a gradually reduced rebate for homes priced between $1,500,000 and $1,850,000;
  • the existing minimum rebate of $24,000 remains available for homes above $1,850,000.
• Adds detailed rules for groups, assignments, cooperative housing shares, leased land and certain multi-unit buildings so the enhanced rebates apply only where Ontario intended.
• Requires claim applications to the CRA and updates to how the agency calculates and caps rebates (caps such as $80,000 appear in the rules).

Who's affected#

• Individuals buying newly built or substantially renovated homes in Ontario under agreements signed between April 1, 2026 and March 31, 2027, and who meet the construction and completion rules.
• Builders and developers who sell new homes or supply new rental units during the covered period.
• Cooperative housing corporations and purchasers of shares used to occupy units, where the share sale meets the specified timing and value rules.
• Owners or operators of residential trailer parks and people involved in certain land-lease arrangements in Ontario.
• The Canada Revenue Agency (CRA) will administer the changes and update its forms and guidance.
• The financial effects (lost provincial tax revenue) are borne by Ontario; the federal government says there is no net federal revenue impact under the existing arrangements.

Why it matters#

• This change lowers the effective HST cost on many newly built homes and some rental housing in Ontario for agreements signed in that one-year window. That can reduce upfront purchase costs or improve the economics of building rental units.
• The rules include clear time and value limits. Buyers and developers need to check the construction start/completion dates and price thresholds to see if they qualify.
• The measures are temporary and targeted. If you are planning to buy a new home or develop new rental housing in Ontario, the timing of the purchase agreement and construction matters for eligibility.
• The CRA will be the point of contact for applying for the rebates, so affected parties should watch for updated forms and guidance from the CRA.