Save $130,000 in HST Rebate on a $1 Million New Home.

March 25, 2026: To support a struggling home construction sector, Premier Doug Ford has announced plans to temporarily expand HST rebates on new home purchases, just ahead of the provincial budget release. This proposal is part of Ontario’s 2026 budget, which will be unveiled tomorrow (Thursday, March 26, 2026). The proposed scheme is set to run for one year and will apply not only to first-time home buyers but also to all new home buyers, including those upsizing or downsizing (with conditions).

As many will recall, this announcement builds on a previous rebate for the provincial (8%) portion of the HST for first-time homebuyers, revealed in October 2025. With the federal government also taking action to address the housing situation, the new plan extends the rebate to cover the full 13% HST for all eligible homebuyers.

“In the face of tariffs and economic uncertainty, Ontario is working closely with the federal government to reduce costs for families, keep workers employed, and create a competitive, resilient, and self-reliant economy in the G7. Today’s announcement will provide meaningful relief to the people of Ontario, helping thousands more families achieve their dream of homeownership and boosting Ontario’s economy by $2.7 billion,” said Premier Doug Ford.

Ontario’s proposal aims to strengthen the existing provincial HST New Housing Rebate and New Residential Rental Property Rebate for one year, from April 1, 2026, to March 31, 2027, temporarily eliminating the HST for eligible buyers of qualifying new homes.

In a statement to reporters today, the provincial Housing Minister Rob Flack noted, “Over 70% of people looking to buy a home doubt they will ever be able to.” He added, “That’s not acceptable for a nation and province as prosperous as ours.”

  ore details, including eligibility requirements, will be released soon.

The program will be partially funded by federal government resources covering the federal portion of the HST (5%), which will contribute approximately $2.2 billion in joint tax relief.

Mississauga Mayor Carolyn Parrish praised Doug Ford, whom she referred to as “her hero,” during the press conference for taking initiative on the housing issue.

“We have done everything we can do as a municipal government, such as cutting development charges (DCs) on multi-bedroom units to zero and reducing DCs on other units by 50%. We’ve done everything possible to make building homes faster, less expensive, and better here in Mississauga,” she stated. “Today’s announcement is the cherry on top of the sundae. It’s exactly what we need to keep housing moving.”

Parrish added that the city of Mississauga is currently processing 17,000 housing units, which she described as “remarkable,” noting that today’s announcement will likely double that number.

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