HST rebates on new homes in Ontario: what you can claim
By Dinesh Jindal, licensed REALTOR® · Reviewed November 2026
New homes in Ontario carry 13% HST. Two standard rebates bring that down for buyers who will live in the home, and a newer first-time buyer rebate can reduce it further.
The standard rebates
- Federal GST new housing rebate: 36% of the 5% GST, up to $6,300. The full rebate applies up to $350,000 and phases out completely at $450,000, so most GTA homes do not get it.
- Ontario new housing rebate: 75% of the 8% provincial part, up to $24,000, at any price.
First-time buyer GST rebate
The federal First-Time Home Buyers' GST Rebate removes up to $50,000 of GST on a new home for eligible first-time buyers: the full GST on homes up to $1 million, phasing out between $1 million and $1.5 million. Eligibility depends on your agreement date and your status as a first-time buyer. Ontario has announced matching relief on the provincial portion for first-time buyers. Confirm what applies to your agreement before you sign.
How the builder handles it
Most agreements say the price includes HST net of rebates and that you assign the rebates to the builder. If you turn out not to qualify, the builder adds the rebate amount to your closing balance. Read the HST schedule carefully.
Buying to rent
If you rent the home out, you usually cannot assign the rebate to the builder. Expect to pay it on closing, then apply to the CRA for the New Residential Rental Property rebate once a qualifying lease (generally one year or more) is in place.
Before you sign
- Is the price HST-inclusive, net of rebates?
- Which rebates does the builder assume you qualify for?
- What happens on closing if you do not?
Dinesh walks through the HST schedule with every client. Book a call
Quick answers
Is HST included in the price of a new home in Ontario?
Usually yes. Most builder prices include HST net of the new housing rebates, and you assign the rebates to the builder. If you do not qualify for the rebates (for example, you plan to rent the home), the builder charges you the rebate amount on closing.
How much is the Ontario new housing rebate?
75% of the provincial part of the HST, up to $24,000. Unlike the federal rebate, it is not phased out by price, so any home priced at $400,000 or more reaches the full $24,000.
Can investors get the HST rebate?
Not through the builder. An investor who rents the home out can apply to the CRA for the New Residential Rental Property rebate after closing, once a qualifying lease is in place. Time limits apply, so speak with your accountant early.
General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.