Calculate your Ontario HST rebate for a new home purchase
New Home HST Rebate Calculator - Ontario 2026
New Home HST Rebate Calculator – Ottawa & Ontario | Khouri Group
🏡 New Home HST Rebate Calculator — Ontario 2026
Estimate your rebate under existing CRA rules or the proposed April 2026 – March 2027 full HST exemption.
🚨 Major change announced March 25, 2026: Ontario & the federal government proposed to fully remove HST on new homes up to $1M for agreements signed April 1, 2026 – March 31, 2027 — up to $130,000 in savings. Subject to passage of federal legislation.
Which rules apply to your purchase?
Enter the Stated Price Net of Rebates (SPNR) — the purchase price in your Agreement of Purchase and Sale. The calculator derives the pre-HST base price using the CRA 4-band formula.
Enter the total purchase price inclusive of HST from your Agreement of Purchase and Sale. The calculator divides by 1.13 to derive the builder's pre-HST base price, then applies the rebate formula.
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Enter the fair market value of the completed home from your Agreement of Purchase and Sale.
$100K$500K$1M$1.5M$2M
📊 Your HST Rebate Breakdown
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Total HST Rebate
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$0
Builder's Base Price
$0
Pre-HST amount
Total HST Payable
$0
13% of base price
HST After Rebate
$0
What you actually pay
Federal Rebate (5% Portion)
$0
—
Ontario Rebate (8% Portion)
$0
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—
Purchase Price Net of HST Rebate
Base price + HST after rebate = your effective all-in cost
$0
⚠️ Pending legislation: The proposed new rules were announced March 25, 2026. Amendments to the federal Excise Tax Act have not yet received Royal Assent. Verify with your builder and a qualified tax professional before relying on these figures.
This calculator provides estimates for informational purposes only and does not constitute tax or legal advice. HST rebate rules, thresholds, and eligibility requirements are subject to change. The proposed 2026–2027 rules are pending federal legislation. Always consult a qualified tax professional or the CRA before making financial decisions.
Ontario New Home HST Rebate – Rules & FAQ | Khouri Group
🚨 New for 2026: Ontario is temporarily removing HST on new homes for purchase agreements signed April 1, 2026 – March 31, 2027. This can save buyers up to $130,000 — the biggest change to new home tax rules in Ontario's history.
⚠️ Not fully law yet. The Ontario 8% portion is confirmed. The federal 5% extension to all buyers requires amendments to the Excise Tax Act that haven't received Royal Assent. Monitor Ontario.ca/budget and consult a tax professional before making decisions.
How it actually works
💡 This isn't a cheque in the mail
New construction homes are priced with HST already built in. This rebate reduces the amount of tax embedded in that price — it lowers what you pay at closing, it doesn't put money in your bank account afterward.
HST has two parts: the 8% Ontario portion (up to $80,000 — confirmed) and the 5% federal portion (up to $50,000 — pending for all buyers). Together they make up the $130,000 headline figure. First-time buyers already qualify for the federal 5% under existing rules; the new announcement extends it to everyone — once legislation passes.
Your rebate by purchase price — New Rules (Apr 2026 – Mar 2027)
Under $1,000,000
Full rebate — up to $130,000
Full 5% federal + full 8% Ontario HST rebated
$1,000,001 – $1,500,000
Flat $130,000 rebate
$50,000 federal + $80,000 Ontario — capped at $1M equivalent
$1,500,001 – $1,850,000
Declining: $130,000 → $24,000
Federal portion phases out; Ontario capped at $24,000
Over $1,850,000
$24,000 Ontario rebate only
No federal rebate. Existing Ontario rules apply.
Who qualifies
📋 Purchase agreement signed with a builder between April 1, 2026 and March 31, 2027
🏡 Home used as a primary residence or rental property
🏗️ Construction starts on or before December 31, 2028
✅ Construction substantially completed by December 31, 2031
👥 Applies to all buyers — not just first-time buyers
Agreements signed before April 1, 2026 — Existing CRA Rules
The existing rebate still applies to agreements signed before April 1, 2026. It's based on the Stated Price Net of Rebates (SPNR) — the purchase price in your Agreement of Purchase and Sale. The SPNR is used to calculate which band applies and to derive the pre-HST base price.
Band 1 — Stated Price Net of Rebates (SPNR) under $368,200
Full federal rebate (up to $6,300) + full Ontario rebate (up to $24,000). Max total: $30,300.
Base = SPNR ÷ 1.052
Band 2 — SPNR $368,200 – $424,850
Federal rebate phases out on a sliding scale. Ontario rebate up to $24,000.
Base = (SPNR + $28,350) ÷ 1.133
Band 3 — SPNR $424,850 – $484,500
Federal rebate nearly zero. Ontario rebate capped at $24,000.
Base = (SPNR + $52,350) ÷ 1.193
Band 4 — SPNR over $484,500
No federal rebate. Ontario rebate capped at $24,000. Max total: $24,000.
Base = (SPNR + $24,000) ÷ 1.13
What buyers should know right now
✅ The opportunity
↓ Lower effective cost on new construction
🏠 More price points become viable
👥 Open to all buyers, not just first-time
⏰ One-year window — ends March 31, 2027
⚠️ The reality
💰 Some builders are already adjusting prices upward
📊 More competition as buyers rush in
⚖️ Federal 5% portion still pending legislation
🔍 Every builder and deal is structured differently
🎯 If you're considering new construction
Get pre-approved so you know your number. Know your price tier — a home just above $1M base price sits in a very different rebate band than one just below. Start now. The market is already moving, and the window closes March 31, 2027.
📞 Questions about your specific situation?
Charles Khouri works with buyers across Ottawa and Eastern Ontario on new construction, resale, and investment properties.
No. The new rules only apply to agreements signed on or after April 1, 2026. If yours is already signed, you're under the existing CRA rules. If you haven't signed yet and can wait until April 1, the difference can be substantial — up to $130,000 on a $1M home versus $24,000 under current rules.
Not entirely. The Ontario 8% portion (up to $80,000) is confirmed. The federal 5% extension to all buyers (up to $50,000) was announced but requires federal legislation that hasn't passed yet. Don't make binding financial decisions based on the full $130,000 until that legislation receives Royal Assent — consult a tax professional.
Yes — the new rules extend to residential rental properties, not just owner-occupied homes. For investment purchases, construction must have begun before March 31, 2026, the agreement must be signed in the April 2026–March 2027 window, and the home must be substantially completed by December 31, 2029.
No. Development charges paid directly to a municipality and building permit fees are generally exempt from HST. However, if these costs are bundled into the builder's purchase price, HST applies to the full amount. Always ask your builder to itemize what's included.
No. The rebate calculation is the same regardless of construction type or home style. What matters is the purchase price and when the agreement was signed — not whether it's a detached home, condo, or townhouse.
This information is based on CRA guidelines and Ontario HST rebate program rules as of April 2026. For informational purposes only — not tax or legal advice. Always consult a qualified tax professional or the CRA before making financial decisions.
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