What was announced.
In March 2026, Ontario, with the federal government, announced temporary relief on the full 13% HST for new homes:
- Full relief on homes valued up to $1 million, a maximum of $130,000.
- $130,000 for homes valued between $1 million and $1.5 million.
- A declining amount between $1.5 million and $1.85 million, down to $24,000.
It’s for all eligible buyers, not only first-time buyers, for homes used as a primary residence or as a long-term rental. Ontario introduced the implementing legislation (Bill 114) in May 2026, and federal regulations are needed too, so check the current status before you rely on it.
If you build on your own lot.
For an owner-built home, the relief is generally available if:
- construction begins on or after April 1, 2026 and on or before March 31, 2027, and
- the home is substantially complete by December 31, 2029.
Buying from a builder has different dates: the purchase agreement must be signed between April 1, 2026 and March 31, 2027.
How value is measured.
For owner-built homes, the existing GTA rebates are based on the fair market value of the house and the land when the home is substantially complete. Expect the new relief to work the same way until the final rules say otherwise. On many GTA lots, land plus a new custom home is worth more than $1.85 million, which leaves the relief at $24,000.
| Value of the new home | Relief |
|---|---|
| $1,000,000 | $130,000 |
| $1,200,000 | $130,000 |
| $1,500,000 | $130,000 |
| $1,700,000 | About $69,400 |
| $1,850,000 or more | $24,000 |
What the deadline means for your schedule.
Work backwards from March 31, 2027. You need a building permit before construction can begin, and a typical design takes 3 to 5 months, with 1 to 3 more for the permit. To make the deadline, most projects need to start design by late 2026 and fit the zoning; a minor variance would likely push you past it.
What counts as the start of construction is set by the rules. Generally it means physical work on the new home, such as excavation for the foundation, not just a permit. Confirm the definition with your accountant.
First-time buyers: other relief.
The federal First-Time Home Buyers’ GST Rebate offers up to $50,000 on new homes up to $1 million, phasing out at $1.5 million, and owner-built homes can qualify. Ontario has also proposed removing the 8% provincial portion of the HST for first-time buyers of new homes up to $1 million. Dates and conditions apply to each.
What to do now.
- Talk to your accountant about which relief fits your situation.
- Get a free Lot Check to see what you can build and whether a variance would be needed.
- Plan design and permit dates against March 31, 2027.
- Leave the relief out of your budget until it’s confirmed for your home.
Sources: 2026 Ontario Budget, HST relief; Ontario, more homes for more people. This is general information, not tax advice.
General information, current to November 4, 2026. Rules and programs change; check the details for your property before you rely on them.