Ontario HST Relief on New and Substantially Renovated Homes: The March 31, 2027 Deadline

Short answer: until March 31, 2027, Ontario is offering up to $130,000 of HST relief on a new home that will be your principal residence, and you do not have to be a first-time buyer. The same relief applies if you build on your own lot or substantially renovate your house, as long as the work starts between April 1, 2026 and March 31, 2027 and the home is worth less than $1.85 million when it is finished. Ontario has also announced that its long-standing $24,000 new housing rebate will end for deals and projects that start after that date.

The deadline is about when your deal or project starts, not when it finishes, which is why it matters to anyone planning a custom home or a full gut renovation in the next few months. This guide explains who qualifies, how much the relief is worth at different prices, what counts as a substantial renovation, and how the rebates are claimed. Every figure comes from the Canada Revenue Agency, the Government of Ontario or the Department of Finance, checked in November 2026. It is general information, not tax advice, so confirm your own situation with an accountant before you sign.

What changed in 2026

New homes in Ontario carry 13% HST: a 5% federal part and an 8% provincial part. Until 2025 most buyers could recover only a small slice of it, through rebates capped at $24,000 on the provincial side and nothing at all on the federal side above $450,000.

That changed in two steps:

• 2025, first-time buyers. The federal First-Time Home Buyers’ (FTHB) GST rebate removed up to $50,000 of the federal part, and Ontario matched it with a first-time buyer rebate of up to $80,000 of the provincial part. These run for agreements made from March 20, 2025 to the end of 2030.
• 2026, all buyers, for one year. In March 2026 Ontario proposed a temporary expansion of HST relief to every buyer of a new home used as a principal residence. The federal regulation that makes it work was made in June 2026 and took effect retroactively from April 1, 2026. CRA calls the provincial piece the Ontario Enhanced New Housing Rebate, and Ontario pays a matching Ontario New Home Affordability Payment for the federal piece.

Together, the two new pieces cover up to 100% of the 13% HST, which is where the $130,000 figure comes from: up to $80,000 for the provincial part and up to $50,000 for the federal part.

How much relief you can get

The relief depends on the value of the home, before tax:

Home value	HST relief available
$1 million or less	100% of the 13% HST, up to $130,000
$1 million to $1.5 million	A flat $130,000 ($80,000 provincial plus $50,000 federal)
$1.5 million to under $1.85 million	Partial relief that shrinks as the value rises
$1.85 million or more	Only the existing Ontario new housing rebate, up to $24,000

Two quick examples for a home bought from a builder. On a $950,000 home, the HST is $123,500, and the full amount is covered. On a $1.3 million home, the HST is $169,000, and the relief is the flat $130,000, so $39,000 is still payable. Between $1.5 million and $1.85 million the relief tapers, and the government has not published a simple formula, so ask for a calculation from your builder or accountant for a home in that range.

Buying a new home from a builder

For a home bought from a builder, CRA’s GST/HST Notice 346 (August 2026) sets these conditions for the enhanced Ontario rebate:

• The agreement of purchase and sale is signed on or after April 1, 2026 and on or before March 31, 2027.
• Construction begins by December 31, 2028 and is substantially completed by December 31, 2031.
• The price is under $1.85 million before tax.
• The home is for your own principal residence or that of a relation.

Builders usually credit the rebate on the statement of adjustments at closing, in which case the builder files the application. If the builder does not, you file it yourself.

Building a custom home on your own lot

This is the part most homeowners miss. If you own the land and hire a contractor to build your house, CRA treats it as an owner-built home, and it qualifies for the same relief. The conditions are:

• Construction begins on or after April 1, 2026 and on or before March 31, 2027.
• The house is substantially completed before 2030.
• Its fair market value at substantial completion, including the land, is less than $1.85 million.
• It is your principal residence or that of a relation.

Because the test is when construction begins, a knock-down rebuild that is still in design in early 2027 can miss the window entirely. Demolition, permits and drawings all take time, so if you are close to the cut-off, plan backwards from March 31, 2027 and ask your accountant what will count as the start of construction for your project. Our custom home cost guide explains the budget side of building on your own lot.

Substantial renovations count too

A renovation can qualify if it is large enough that CRA treats the house as new. RC4028, CRA’s guide to new housing rebates, sets out the test:

• Generally, 90% or more of the interior of the existing house has to be removed or replaced. The house is essentially gutted.
• Only livable areas count. Garages and crawl spaces are left out.
• The foundation, exterior walls, interior supporting walls, roof, floors and staircases can stay. They do not have to be replaced to pass the test.
• A basement renovation, a new garage or a deck on its own does not qualify, and neither does an addition by itself. A major addition built as part of a substantial renovation of the whole house can qualify.

When a renovation passes the test, it is treated like an owner-built home: the work has to start between April 1, 2026 and March 31, 2027, finish before 2030, and the finished home has to be worth less than $1.85 million. An ordinary renovation, however large the bill, gets none of these rebates. If you are planning a whole-house renovation, it is worth asking early whether your scope reaches the 90% line.

First-time buyers have a longer window

If you are a first-time buyer, the 2025 rebates remain available well after March 2027:

• The federal FTHB rebate covers up to 100% of the federal part of the HST, to a maximum of $50,000, in full up to $1 million and reduced between $1 million and $1.5 million. It applies to builder agreements made from March 20, 2025 and before 2031, and to owner-built homes where construction begins in the same window and the value is under $1.5 million.
• Ontario’s first-time buyer rebate covers up to $80,000 of the provincial part on the same conditions.
• To count as a first-time buyer you must be at least 18, a Canadian citizen or permanent resident, and not have lived in a home that you or your spouse or common-law partner owned as your main residence in the current year or the four previous calendar years.

You cannot double up. If you qualify for both the first-time buyer rebate and the enhanced rebate, the provincial relief is capped at $80,000, and on the federal side you claim the FTHB rebate first, with Ontario’s payment covering only what is left.

The $24,000 Ontario rebate is ending

The Ontario New Housing Rebate has refunded 75% of the provincial HST, up to $24,000, for years, and unlike most housing rebates it applies at any price. In its 2026 Fall Economic Statement (October 29, 2026), Ontario said it is proceeding with eliminating it. It will remain available only where the purchase agreement is made on or before March 31, 2027, or, for owner-built homes, where construction or substantial renovation begins on or before that date.

This had been announced but not yet written into law when we checked in November 2026. It matters most for homes worth $1.85 million or more, where this rebate is the only relief available. For those projects, starting before April 2027 may be the difference between recovering $24,000 and recovering nothing.

How the rebates are claimed

• Bought from a builder: the builder normally credits the rebate at closing and files Forms GST190 and RC7190-ON. If not, you apply yourself, generally within two years of taking ownership or possession.
• Owner-built home or substantial renovation: you file Forms GST191, GST191-WS and RC7191-ON yourself, generally within two years of your base date, which is usually when the work is substantially completed.
• Ontario’s federal-portion payment: there is no separate Ontario application. You consent on the CRA form, and Ontario expects to start issuing payments in early 2027.

Keep every invoice that shows HST paid, the dates construction started and finished, and the property’s assessed or appraised value at completion. For an owner-built home or substantial renovation, the rebate is calculated from the HST you actually paid, so documentation is what turns eligibility into money.

What this means if you are planning a project

1. Work out which route you are on. Buying new, building on your own lot, or gutting your current home each have their own conditions.
2. Check the value test. The $1.85 million limit for an owner-built or renovated home is measured at completion and includes the land. Get a realistic estimate before you commit.
3. Plan backwards from March 31, 2027. Design, drawings and permits take months. If you want to start before the cut-off, the time to begin design is now.
4. Confirm the scope for a renovation. If you are relying on the 90% test, document the scope of work so you can show what was removed and replaced.
5. Talk to an accountant about your situation, especially if a relative will live in the home or you plan to rent any part of it, where the self-supply rules can apply.

Planning a custom home or full renovation?

We design and build custom homes and whole-house renovations across Toronto and the GTA, and we can give you a realistic schedule for starting work before March 31, 2027. Book a free consultation, or see our custom home services.

Ontario HST rebate FAQs

Do I have to be a first-time buyer to get Ontario’s HST relief?

No. The enhanced relief available from April 1, 2026 to March 31, 2027 applies to any buyer of a new or substantially renovated home that will be their own principal residence or that of a relation. First-time buyers have separate rebates that run until the end of 2030.

Does the March 31, 2027 deadline mean I have to close or move in by then?

No. For a home bought from a builder, the agreement of purchase and sale has to be signed by March 31, 2027. For an owner-built home or a substantial renovation, construction or the renovation has to begin by that date, and the home has to be substantially completed before 2030.

Does building a custom home on my own lot qualify?

Yes, if construction begins between April 1, 2026 and March 31, 2027, the house is substantially completed before 2030, it is worth less than $1.85 million at completion including the land, and it will be your principal residence or a relation’s.

Does a renovation qualify for the HST rebate?

Only a substantial renovation, which generally means removing or replacing 90% or more of the livable interior. A basement finish, a new kitchen, a garage, a deck or an addition on its own does not qualify.

How much is the Ontario HST relief worth?

Up to $130,000: the full 13% HST on homes up to $1 million, a flat $130,000 between $1 million and $1.5 million, and partial relief up to $1.85 million.

What happens to the $24,000 Ontario new housing rebate?

Ontario has announced that it will end for purchase agreements made, and owner-built or substantial renovation projects started, after March 31, 2027.