Toronto 
Ontario is looking to ease the cost of new homes with a proposal that would remove the full HST for a large segment of buyers.
As part of its 2026 Budget, the province says it will remove the full 13 per cent HST on new homes priced up to $1 million. That translates to a maximum rebate of $130,000. The same rebate cap would apply to homes priced up to $1.5 million, before gradually declining. At $1.85 million and above, the rebate would drop to a maximum of $24,000.
The move builds on earlier steps aimed at first-time buyers, but this time the scope is wider.
Premier Doug Ford framed the proposal as a response to economic pressure, pointing to tariffs and uncertainty. He said the plan could boost Ontario’s economy by $2.7 billion while helping more families enter the housing market.
The federal government is expected to share costs, covering roughly the five per cent federal portion of the HST. Together, both levels of government would deliver nearly $2.2 billion in tax relief, assuming federal legislation passes.
The enhanced rebate would run for one year, from April 1, 2026, to March 31, 2027. During that window, the province estimates the policy could trigger about 8,000 additional housing starts and support up to 21,000 jobs.
Finance Minister Peter Bethlenfalvy said rising costs have made affordability a pressing issue, calling the rebate expansion relief on one of life’s biggest purchases.
Housing Minister Rob Flack linked the plan to increasing supply, saying it aims to get more homes built faster.
The proposal is part of a broader housing strategy that also includes removing the provincial portion of HST on purpose-built rentals and funding programs worth $4 billion and $1.2 billion to support infrastructure and construction.
Full details are expected with the budget release on March 26, 2026.
