Buying a newly built home in Ontario comes with a big tax bill: 13% HST, made up of the 5% federal portion and the 8% provincial portion. Several programs can now wipe out most or all of it. Here's how they fit together, based on the CRA's latest guidance.
The short version
- Federal First-Time Home Buyers' (FTHB) GST/HST rebate: up to $50,000 back on the federal portion for a new home up to $1 million, with a smaller rebate between $1 million and $1.5 million. It's law, after Bill C-4 received Royal Assent on March 12, 2026 (CRA).
- Ontario enhanced new housing rebate: together with Ontario's regular new housing rebate, up to $80,000 of the 8% provincial portion back on qualifying new homes, for agreements signed from April 1, 2026 to March 31, 2027. It's open to all eligible buyers, not just first-time buyers (CRA Notice 346).
- Ontario New Home Affordability Payment (ONHAP): for people entitled to the enhanced rebate, the province pays up to $50,000 toward the 5% federal portion, reduced by any federal rebate you get (CRA Notice 346).
- Ontario first-time home buyers' rebate: a separate provincial rebate on the 8% portion for eligible first-time buyers. The CRA confirms it can be claimed alongside the enhanced rebate, within an overall cap (CRA Notice 346).
The federal first-time home buyers' rebate
How much
- New home up to $1 million: the full GST, or the full federal part of the HST, up to $50,000.
- Between $1 million and $1.5 million: the rebate shrinks on a straight line, so a $1.25 million home gets about half the maximum.
- $1.5 million or more: no FTHB rebate.
Key dates
According to the Department of Finance, the rebate generally applies to agreements of purchase and sale entered into on or after March 20, 2025 and before 2031. Construction must begin before 2031, and the home must be substantially completed before 2036 (CRA).
Who counts as a first-time buyer
Generally, you must be at least 18, and you must not have lived in a home that you, or your spouse or common-law partner, owned in the current calendar year or the four preceding calendar years. The home has to be your primary place of residence, and you generally can't claim the rebate if you or your spouse or partner claimed it before. The CRA's rebate page has the full conditions.
How to claim
The FTHB rebate works alongside the existing GST/HST new housing rebate. Builders often pay or credit housing rebates at closing. If yours didn't, you can apply to the CRA directly using Form GST190.
Ontario's enhanced new housing rebate (all eligible buyers)
How much
Under CRA Notice 346:
- New home valued up to $1 million: the full 8% provincial portion back, up to $80,000.
- Over $1 million and up to $1.5 million: a flat $80,000.
- Over $1.5 million and under $1.85 million: a partial rebate.
- $1.85 million and up: no enhanced rebate. Only Ontario's regular new housing rebate, of up to $24,000, is available.
Key dates and conditions
- Buying from a builder: your agreement of purchase and sale must be signed on or after April 1, 2026 and on or before March 31, 2027. Construction must begin by December 31, 2028, and the home must be substantially completed by December 31, 2031.
- Building your own home: construction must begin between April 1, 2026 and March 31, 2027, and be substantially completed before 2030.
- Primary residence: the home must be for you, or a relation, to live in as a primary place of residence.
- Assignments and changed deals: an assignment only qualifies if both the original agreement and the assignment were signed in the window. An agreement signed before April 1, 2026 that's later changed or assigned is treated as signed before April 1, so it doesn't qualify for the enhanced rebate.
The Ontario New Home Affordability Payment
If you're entitled to the enhanced rebate, you may also get the ONHAP, worth up to $50,000, or up to 100% of the 5% federal portion of the HST. It's reduced by any federal new housing rebate or first-time home buyers' rebate you're entitled to, and if you qualify for the federal FTHB rebate you must claim it first. There's no separate application: you give consent on your new housing rebate application for the CRA to share your information with Ontario, which issues the payment separately (CRA Notice 346).
Together, these programs mean eligible buyers of a qualifying new home valued up to $1 million can recover up to the full 13% HST, whether or not they're first-time buyers.
Ontario's first-time home buyers' rebate
Eligible first-time buyers can also claim Ontario's first-time home buyers' rebate on the 8% provincial portion. According to the CRA, if you're eligible for both this rebate and the enhanced rebate, you can claim either or both, but the total of all rebates for the 8% provincial portion can't be more than the lesser of $80,000 and the provincial HST actually payable on the home (CRA Notice 346).
How to apply
- Bought from a builder: use Form GST190 with the RC7190-ON Ontario rebate schedule. Many builders credit the rebates at closing.
- Built your own home: use Form GST191 with the RC7191-ON Ontario rebate schedule.
A big change coming after March 2027
Ontario's 2026 Budget proposed ending its regular HST New Housing Rebate and New Residential Rental Property Rebate after the enhancement period, with details promised in the province's fall 2026 economic update. If you're shopping for a new build, the date you sign matters more than usual.
Before you sign
- Ask the builder how the rebates are reflected in the price and who files each application.
- Keep every document: the agreement, any amendments, and your closing statement.
- Confirm first-time buyer status for both you and your spouse or partner.
- Plan your down payment sources. If you're also using an FHSA or the Home Buyers' Plan, our first-time home buyer guide walks through how they fit together.
Sources
- First-time home buyers' (FTHB) GST/HST rebate, Canada Revenue Agency
- Ontario Enhanced New Housing Rebate, GST/HST Notice 346, Canada Revenue Agency
- GST/HST new housing rebate, Canada Revenue Agency
- Legislation to make life more affordable receives Royal Assent, Department of Finance Canada
- 2026 Ontario Budget, Annex: Details of Tax Measures, Government of Ontario
Buying a new build? Book a consultation and we'll help you plan the rebates and your down payment strategy.