HST rebates on new homes in Ontario can involve federal and provincial relief, each with its own conditions. An eligible buyer or owner-builder may be able to recover part of the tax, but the amount depends on the home, agreement or construction dates, occupancy and the particular rebate. Ontario’s newer enhanced rebate and affordability payment must be considered alongside—not simply added to—the federal programs. CRA: Ontario enhanced new housing rebate
HST rebates on new homes in Ontario: which programs apply?
When comparing HST on new homes in Ontario with a resale, start with the sale itself. A builder’s sale of a new or substantially renovated home is generally taxable; housing last used by an individual as a residence is generally exempt when sold. Resales and assignments have exceptions, so check the actual transaction. CRA: types of supply
First separate the 5% federal and 8% Ontario components of the 13% HST rate. Then check the program for each component and the conditions for your transaction. The maximums in this table are limits, not promises of a payment at closing. CRA: rates; CRA: new housing rebates
| Relief | What it addresses | Maximum or interaction |
|---|---|---|
| Ordinary federal new housing rebate | Federal GST or federal part of HST | Generally 36% of that component, up to $6,300, subject to the applicable value and eligibility tests. |
| Federal first-time home buyers’ rebate | Federal component for eligible first-time buyers | Together with ordinary federal relief, up to $50,000; it is not $50,000 on top of the ordinary rebate. |
| Ordinary Ontario rebate | Ontario component | Up to $24,000 if applicable conditions are met. |
| Ontario enhanced new housing rebate | Additional Ontario component relief | Together with the ordinary Ontario rebate, up to $80,000, if eligible. |
| Ontario first-time home buyers’ rebate | Ontario component for eligible first-time buyers | Up to $80,000 within the combined provincial cap; eligibility follows the federal first-time buyer conditions. |
| Ontario new home affordability payment | Separate Ontario-administered payment | Up to $50,000; reduced by federal new housing or first-time rebate entitlement. |
The CRA housing rebate guide sets out the ordinary programs; CRA Notice 346 explains the enhanced Ontario relief and affordability payment. Our Ontario HST overview explains the general rate, and our B.C. new-home rebate guide covers a different provincial context.
How do the federal rebates differ?
For a qualifying purchase of a home and land from a builder, the ordinary federal rebate generally decreases as the relevant value rises above $350,000 and is unavailable at $450,000 or more. Its usual maximum is $6,300. Other transaction types use their own price or fair-market-value tests; residence and other conditions also matter. CRA: housing rebate guide
The first-time home buyers’ rebate became law in March 2026. For a qualifying home, combined ordinary and first-time federal relief may recover up to $50,000 of the 5% federal component. Under the home-and-land value test, full relief is available up to $1 million, declines above that and is unavailable at $1.5 million or more. Check the correct test for leased land or a co-op. CRA: federal rebate status and amount
Being a first-time buyer requires more than never having bought the specific home. CRA’s conditions include age 18 or older, Canadian citizenship or permanent residence, and a test generally looking at whether the person or their spouse or common-law partner lived in a home they owned in the relevant year or previous four calendar years. Other conditions, including transaction dates and occupancy, still apply. CRA: who can apply
What does Ontario enhanced relief add?
The ordinary Ontario rebate can be available up to $24,000 even where the federal ordinary rebate’s value threshold is exceeded, provided its own conditions are met. Enhanced Ontario relief can increase the combined ordinary and enhanced provincial rebate to as much as $80,000. CRA: Ontario notice
Ontario also has a separate first-time home buyers’ rebate for the provincial HST component, with eligibility following the federal first-time buyer conditions. A buyer eligible for both it and the enhanced rebate may claim either or both. All rebates for the provincial component together cannot exceed the lesser of $80,000 and the provincial HST payable on the home. These are not two additional $80,000 entitlements. CRA: first-time home buyers’ rebates; CRA: Ontario Notice 346
For the general home-and-land schedule, eligible homes up to $1 million may receive full relief on the provincial portion. Above $1 million to $1.5 million, the combined rebate can be $80,000; above $1.5 million it declines, and at $1.85 million or more only the ordinary rebate of up to $24,000 may remain. Calculations and value tests differ for leased land or co-ops.
For a builder purchase, the agreement generally must be entered into from April 1, 2026 through March 31, 2027. For an owner-built home, the general window instead concerns when construction or substantial renovation starts. Other eligibility, completion and occupancy conditions apply; an assignment or change to an agreement can have special rules. Read the CRA notice before relying on the dates.
How does the affordability payment interact with federal relief?
The Ontario new home affordability payment may be available to an eligible enhanced-rebate claimant for up to $50,000. It is reduced by the federal portion of any ordinary federal new housing rebate or first-time buyer rebate to which the person is entitled. It should not be counted as a second full recovery of the same federal tax. CRA: Ontario notice, affordability payment
For example, assume a qualifying home has $40,000 of federal HST and an eligible buyer is entitled to recover all $40,000 through the combined federal rebates. In that simplified case, there is no remaining federal component to recover through the affordability payment. Eligibility and the actual calculation must be checked for the particular purchase.
Who applies and what should you keep?
Ask the builder whether an eligible rebate or payment is being credited in the purchase documents, and who will submit the application. A credit reflected in the price should not be counted again as a separate payment. For builder purchases, CRA identifies Form GST190 and Ontario schedule RC7190-ON; owner-builders use GST191 and RC7191-ON. The notice explains the different submission routes and consent to share information for the Ontario payment. CRA: applying for Ontario relief
Keep the agreement, relevant dates, invoices, proof of occupancy and the builder’s calculation. Before comparing HST on new homes in Ontario with a resale, identify the actual transaction and ask how tax and any rebate are handled; a new-build illustration is not a ruling on another sale. For rate and classification context, see our GST/HST rates guide and taxable versus exempt supplies guide.