Updated October 14, 2026. Rules in force for agreements signed April 1, 2026 to March 31, 2027.
A builder’s sign says $799,990. Is that the price before HST, the price with HST already in it, or the price after a rebate you have not received yet? In 2026 the answer can move your real cost by more than $100,000 on the same home.
The short answer: most Ontario builders quote new homes as “HST included,” which means the price already counts every rebate you are expected to qualify for, and you sign those rebates over to the builder at closing. If you qualify, you pay the price on the sign. If you do not, you pay the builder the rebate amount on closing day. And in 2026, a new rebate means the same home can be priced three different ways depending on which rebates the builder has counted in.
This guide shows you how to tell which price you are looking at, what each rebate is worth, who loses it, and the clauses to read before you sign.
One home, three prices
Take a new townhouse that the builder would sell for $800,000 before tax. HST in Ontario is 13%: 5% federal and 8% provincial. Here are three ways the same home can be advertised.
The second and third prices are both called “HST included.” They are $80,000 apart. For years, the second version was the norm. Now that the 2026 rebate is in force, some builders advertise the third version, because it looks much cheaper on a sign.
The reverse can happen too. A buyer who signs an older-style “HST included” price that only counts the $24,000 rebate may be entitled to more. Whether that extra money reaches you or stays with the builder depends on the wording of your agreement. That is why the clauses below matter.
The four rebates in play in 2026
| Rebate | Who qualifies | Maximum | Agreement dates |
|---|---|---|---|
| Ontario new housing rebate (standard) | Buyer or a relative will live in the home as their main residence | $24,000 | Any date |
| Federal GST new housing rebate (standard) | Same, on homes under $450,000 | $6,300 | Any date |
| Federal first-time home buyers’ GST rebate | First-time buyers, 18 or older, citizens or permanent residents, buying a main residence and first to live in it | $50,000 | March 20, 2025 to the end of 2030 |
| Ontario enhanced HST relief (the 2026 rebate) | Individuals buying a main residence, first-time or not. A separate rental version exists for long-term rentals | $130,000 | April 1, 2026 to March 31, 2027 |
The federal first-time buyer rebate became law on March 12, 2026. It removes the 5% GST on new homes up to $1 million and phases out by $1.5 million. Ontario’s enhanced relief was passed in May 2026, with federal and provincial regulations made in June. It is made up of two pieces: the 8% provincial portion of HST, and a 5% Ontario top-up that covers the federal portion. Both can be credited by the builder at closing using the updated CRA form GST190, and Ontario reimburses the builder for the 5% piece later.
You cannot stack them to get back more than the tax. A first-time buyer who qualifies for both claims the federal first-time rebate first, and the Ontario relief covers the rest. Our earlier story on Ontario’s expanded HST rebate covers the March announcement.
The conditions on the 2026 rebate
- Your agreement of purchase and sale with the builder is signed between April 1, 2026 and March 31, 2027.
- Construction starts by December 31, 2028 and is substantially complete by December 31, 2031.
- You are an individual, not a corporation or partnership, and you or a relative will live in the home as your main residence.
- The home is a detached or semi-detached house, townhouse, condo unit, duplex, co-op unit or similar.
What the rebate is worth at each price
| Price before tax | HST at 13% | Standard rebates | HST you pay, standard | 2026 rebate | HST you pay, 2026 |
|---|---|---|---|---|---|
| $600,000 | $78,000 | $24,000 | $54,000 | $78,000 | $0 |
| $800,000 | $104,000 | $24,000 | $80,000 | $104,000 | $0 |
| $1,000,000 | $130,000 | $24,000 | $106,000 | $130,000 | $0 |
| $1,200,000 | $156,000 | $24,000 | $132,000 | $130,000 | $26,000 |
| $1,700,000 | $221,000 | $24,000 | $197,000 | $69,429 | $151,571 |
| $2,000,000 | $260,000 | $24,000 | $236,000 | $24,000 | $236,000 |
“Standard” is what a repeat buyer gets for an agreement signed outside the 2026 window: the Ontario $24,000 rebate, plus the federal rebate only on homes under $450,000. A first-time buyer outside the window may also get up to $50,000 back through the federal first-time rebate.
The 2026 rebate is worth the most between $1 million and $1.5 million, where it stays at $130,000. Above $1.5 million it shrinks quickly, and at $1.85 million it is back to the standard $24,000. Upgrades and extras you buy from the builder usually count toward the price, so a $980,000 home with $40,000 of upgrades can cross the $1 million line.
Calculator: what are you really paying?
Enter the builder’s price before HST. The calculator shows the tax, the rebate you could expect and your net cost. It is an estimate based on the published rules, not tax advice.
Who does not get the rebate
These are the buyers who most often find out on closing day that the “HST included” price was not their price.
Investors
If you are buying to rent the home out, you do not qualify for the main-residence rebates, so you cannot sign them over to the builder. Most builder agreements then require you to pay the builder an amount equal to the rebate on closing. If the price counted the full 2026 rebate, on an $800,000 home that is $104,000 due on the day you close, on top of your down payment.
Investors can apply for a rental rebate instead, but it works differently. It is claimed directly from the CRA, not credited by the builder, and generally requires a long-term lease of at least a year. Tax advisers summarizing the 2026 rules put the enhanced rental rebate at up to $80,000 per unit for agreements signed in the same window. You wait for that money after closing, so plan your cash for the full amount.
Buyers using a company
Corporations and partnerships do not qualify for the main-residence rebates. Every buyer on title must be an individual.
Agreements signed outside the window
If you signed before April 1, 2026, you are on the standard rebates, plus the federal first-time rebate if you qualify. The regulations include anti-avoidance rules. Cancelling an older agreement and re-signing it in 2026 just to get the rebate is likely to be treated as the original date.
Assignment buyers
If you are buying a unit by assignment, both the original builder agreement and your assignment must be signed between April 1, 2026 and March 31, 2027. An older agreement assigned to you this year does not qualify.
Buyers whose builder runs late
Construction must start by the end of 2028 and be substantially complete by the end of 2031. If the builder misses those dates, the rebate can be lost through no fault of yours. Ask what the agreement says if that happens.
Buyers who change plans
The rebate depends on you or a relative moving in. If you close and then rent the home out instead, the rebate can be reassessed and you may have to repay it.
The clauses to read in your agreement
The price on the first page is only half the story. The HST terms are usually in a schedule near the back. Look for these four things, and have a real estate lawyer read them before your cooling-off period ends. New condo buyers in Ontario have 10 days to cancel after signing.
- How the price is stated. Look for words like “inclusive of HST, net of all rebates assigned to the vendor.” Then check which rebates. A schedule that names the Ontario enhanced relief or the 2026 regulations tells you the price already counts it.
- What happens if you do not qualify. Almost every agreement says you pay the vendor the rebate amount on closing if you are not eligible. Find the clause and work out the dollar figure for your price.
- What happens if the rules change or the rebate is denied. Some agreements let the builder raise the closing amount if a rebate is reduced or rejected. Ask for that risk to sit with the builder if the cause is its own delay.
- The paperwork you must sign. Builders ask for a statutory declaration that you will live in the home, and the GST190 form with consent to share information with Ontario. A false declaration can be reassessed against you years later.
HST is only one closing cost on a new home. Development charges, Tarion enrolment, utility hookups and interim occupancy fees can add tens of thousands more. See our full list of pre-construction closing costs in Ontario and how interim occupancy fees work.
Questions to ask the builder before you sign
- Is this price before HST, or HST included?
- If HST is included, which rebates does it count: the standard $24,000, the federal first-time rebate, or the 2026 Ontario relief?
- If I do not qualify, how much will I owe on closing?
- Do upgrades count toward the price for the rebate, and will they push me over $1 million or $1.5 million?
- When will construction start, and what happens to my rebate if you miss the 2028 or 2031 deadlines?
- If a rebate is denied or delayed, who carries the cost?
- Are development charges capped in this agreement? See our development charge tracker for where cities stand.
Comparing projects? Our GTA new homes directory lists current projects with prices, deposits and occupancy dates. If you want someone on your side when you sign, see how we work with buyers of resale and new homes.
Questions about HST on new homes
Do new homes in Ontario include HST in the price?
Usually yes. Most builders quote an “HST included” price that already deducts the rebates they expect you to qualify for. You assign those rebates to the builder at closing. Always confirm which rebates the price counts.
How much is the HST rebate on a new home in Ontario in 2026?
For agreements signed between April 1, 2026 and March 31, 2027, an eligible buyer of a main residence can get back the full 13% HST on a home up to $1 million, a flat $130,000 up to $1.5 million, a declining amount up to $1.85 million and $24,000 above that.
Do repeat buyers qualify for the 2026 Ontario HST relief?
Yes. The 2026 relief is not limited to first-time buyers. The home must be your main residence or a relative’s, and you must be an individual.
Do investors get the HST rebate on a pre-construction condo?
Not the main-residence rebate. Investors usually pay the rebate amount to the builder on closing, then apply to the CRA for a rental rebate after leasing the unit for at least a year. The rental rebate is smaller and paid later.
Can a first-time buyer get both the federal first-time rebate and the Ontario 2026 relief?
You can benefit from both, but not beyond the tax you paid. The federal first-time rebate is applied first and the Ontario relief covers the rest, up to the 13% HST.
What if I already closed on a qualifying home and paid the full HST?
If your agreement was signed in the 2026 window and you qualify, you can apply to the CRA for the rebate yourself. The general deadline is two years from the date you take ownership.
Sources
- Government of Ontario, 2026 Budget and HST relief announcement, March 2026.
- Osler, “Ontario’s new HST rebate: key details,” March 26, 2026; Aird & Berlis, “2026 Ontario Budget: Enhanced HST Relief on New Homes,” March 31, 2026; Gowling WLG, April 13, 2026.
- Miller Thomson, “Ontario’s Enhanced New Housing Rebate: what builders need to know about crediting, reporting and recovery,” August 26, 2026.
- MNP, “First-time Home Buyers’ GST rebate receives Royal Assent,” March 2026.
- Simplyclose, summary of Bill 114, Ontario Regulation 196/26 and CRA Notice 346, June 23, 2026.
- Canada Revenue Agency, GST/HST new housing rebate and Form GST190.
This guide is general information, not tax or legal advice. Rebate rules depend on your agreement, your use of the home and CRA assessment. Have a real estate lawyer review any builder agreement before your cooling-off period ends. HomeLife Landmark Realty Inc., Brokerage.