2026 Ontario Budget Expanded HST Rebates – Guide for Buyers, Renters and Builders

Key points

• Eligible timeframe: agreements signed between 04/01/2026 and 03/31/2027.
• Price bands & rebates:
  • Up to $1,000,000: full 13% HST removed (up to $130,000).
  • $1,000,000–$1,500,000: flat $130,000.
  • $1,500,000–$1,850,000: phased from $130,000 down to $24,000.
  • Above $1,850,000: minimum $24,000 (current Ontario rebate).
• Construction deadlines: must start by 12/31/2028 and be substantially complete by 12/31/2031.
• Rental eligibility: enhanced rebate also applies to new long‑term rental builds that meet the same timelines.
• Anti‑avoidance: canceling a pre‑April‑2026 contract to sign a new one after 04/01/2026 disqualifies the enhanced rebate.
• Other eligibility rules unchanged: purchaser must occupy as a primary residence or meet residential rental criteria.

Implications

• Broader reach: generous relief previously limited to first‑time buyers is now available to all qualifying purchasers.
• More relief for higher‑priced homes: the $130,000 cap now applies up to $1.5M (partially to $1.85M), affecting many new units in pricier markets.
• Supply effect: province estimates about 8,000 additional homes may result as affordability improves and projects become more viable.