Includes "Ontario HST Rebate," "Custom Builds," "Substantial Renovations," and "$130,000 maximum rebate

Ontario’s New $130,000 HST Rebate: A Complete Guide for 2026 Homebuyers

Custom Built Homes
March 30, 2026•2 min read

The Ontario housing market just received its most significant tax shake-up in decades. As of April 1, 2026, the provincial and federal governments have teamed up to effectively eliminate the 13% HST on qualifying new homes for a limited one-year window.

If you are planning to build or buy in 2026, this could mean up to $130,000 back in your pocket. Here is everything you need to know to maximize your savings.

The 2026 Ontario HST Rebate: What’s New?

Previously, significant HST relief was mostly reserved for first-time buyers or capped at much lower amounts. Under the new 2026 expansion, the eligibility has been blown wide open.

Key Rebate Brackets

Home ValueMaximum Rebate AmountUp to $1,000,000Full 13% HST Rebate (Up to $130,000)$1,000,000 – $1,500,000Flat $130,000 Rebate$1,500,000 – $1,850,000Sliding Scale (Decreases from $130k to $24k)Over $1,850,000$24,000 (Existing Provincial Rebate)

Are You Eligible? (The "One-Year Window")

Timing is everything. To qualify for the maximum $130,000 relief, you must meet specific "Path 1" or "Path 2" criteria based on your contract and construction dates:

1. The Purchase Window

You must sign your Agreement of Purchase and Sale (APS) between April 1, 2026, and March 31, 2027.

2. Construction Deadlines

  • New Builds: Construction must start by December 31, 2028, and be substantially completed by December 31, 2031.

  • Rental Properties: If you are an investor, construction must have begun before March 31, 2026, with completion by December 31, 2029.

3. Primary Residence vs. Rental

The rebate applies to homes intended as a primary place of residence for you or a close relation, or as a long-term residential rental. Short-term rentals (like Airbnb) do not qualify.

Substantial Renovations & Custom Homes

Many homeowners don't realize that a Substantial Renovation can qualify as a "New Home" in the eyes of the CRA.

  • The 90% Rule: To qualify, roughly 90% of the existing interior must be removed or replaced.

  • Custom Builds: For those building on their own land, the rebate can reach up to $24,000 under standard custom-build rules, but may hit the higher $130,000 thresholds if the project meets the new 2026 criteria.

Note: For custom projects, ensure your "Substantial Completion" falls within the government’s required windows to avoid leaving money on the table.

Don't Leave Your Rebate to Chance

Navigating CRA forms and builder contracts can be a headache. Whether you are a first-time buyer, a custom home builder, or a seasoned investor, ensuring your paperwork is filed correctly—and within the two-year retroactive window—is vital.

Get Expert Help with RebateMax We specialize in maximizing Ontario housing rebates so you don't have to guess.

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