Ontario Expanding HST Rebate to Lower the Cost of New Homes in Partnership with the Federal Government

March 25, 2026

In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7.

Our government’s proposal would strengthen the existing provincial HST New Housing Rebate and New Residential Rental Property Rebate for one year, from April 1, 2026, to March 31, 2027, temporarily removing the HST for eligible buyers of qualifying new homes.

The federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, subject to passage of federal legislation, which would approximately cover the federal 5 per cent portion of the HST that is being removed from new homes in Ontario.

This partnership will provide almost $2.2 billion in total joint tax relief for housing in Ontario.

With this expansion of HST rebates, we are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives

We continue to call on municipalities to lower development charges to unlock and speed up the construction of the homes that communities across the province urgently need.

Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.