Pre-Construction HST Rebate.
The 2026 Ontario Budget set caps and a phase-down on the new-construction HST rebate. Calculated to the verified Budget schedule — for every price tier.
Capped, then phased down.
The 2026 Ontario Budget did not deliver the headline anyone expected. The new- construction HST rebate is generous below $1M, restrained between $1M and $1.5M, and largely symbolic above $1.85M.
Below $1M the buyer gets full 13% HST relief — capped at a maximum of $130,000 (which binds at exactly $1M). This was the headline measure: full HST forgiveness on a starter home.
Between $1M and $1.5M, the rebate flattens at $80,000 — the provincial 8% portion only. The federal 5% is no longer rebated above $1M.
Between $1.5M and $1.85M, the rebate phases down linearly from $80,000 to $24,000.
$1.85M and above — most of the luxury market— receives a flat $24,000 rebate. On a $5M purchase that’s less than 0.5% of the price.
Who qualifies?
Buyers of new pre-construction condos and new homes in Ontario qualify if the APS was signed in the April 1, 2026 → March 31, 2027 window, construction begins by Dec 31, 2028, and the project is substantially complete on schedule. Both primary residence and long-term-rental purchasers can qualify, under different program mechanics. International buyers may qualify too — eligibility on the rebate is separate from the Non-Resident Speculation Tax.
How is it paid?
In most pre-construction purchases the rebate is assigned to the builder at closing and applied directly as a credit against the purchase price. The builder handles the paperwork; your closing statement reflects the effective cost.
What about the Foreign Buyer Tax (NRST)?
The HST rebate and the Non-Resident Speculation Tax (NRST) are separate. International buyers who pay the 25% NRST may still qualify for the HST rebate, depending on residency intent. The two work independently and are calculated separately at closing.
What happens after March 31, 2027?
The Ontario provincial new-housing rebate and NRRPR are eliminated entirelyon April 1, 2027. Only the federal first-time home buyers’ rebate and the federal Purpose-Built Rental rebate continue. Calculator output beyond March 31, 2027 is for the federal portion only.
Three price points.
$800,000 purchase
$1,250,000 purchase
$1,700,000 purchase
$5,000,000 purchase
Frequently asked.
What is the Ontario pre-construction HST rebate under the 2026 Budget?
The April 2026 Ontario Budget set caps and a phase-down on the new-construction HST rebate. Homes valued at or under $1M receive full 13% HST relief (capped at $130,000). From $1M to $1.5M the rebate is $80,000 flat. From $1.5M to $1.85M it phases down linearly from $80,000 to $24,000. Homes valued $1.85M or above receive a flat $24,000 rebate. Eligibility window: APS signed April 1, 2026 → March 31, 2027.
How much rebate do I get on a $4–5M luxury pre-construction condo?
For purchases at $1.85M and above, the rebate is a flat $24,000 — regardless of price tier. On a $4M, $5M, or $10M purchase, the verified Budget rebate is the same $24,000. Earlier reporting that suggested "13% of any purchase price" was incorrect; the official Budget pages set hard caps and a phase-down.
How is the rebate paid?
In most pre-construction purchases, the rebate is assigned to the builder at closing and applied as a credit on the purchase price. The buyer pays the effective cost rather than the full price plus HST. The paperwork is handled by the builder's solicitor and reflected on your closing statement.
What is the eligibility window?
The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. Construction must begin on or before December 31, 2028. Substantial completion must be on or before December 31, 2031 (primary residence) or December 31, 2029 (owner-built). The provincial new-housing rebate and NRRPR are eliminated entirely on April 1, 2027.
Do international buyers qualify for the HST rebate?
International buyers may qualify, provided the unit is intended as a primary or secondary residence and other eligibility rules are met. The Non-Resident Speculation Tax (NRST) is a separate consideration and is calculated independently. International buyers should verify with their tax advisor and lawyer for their specific situation, including the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, which is separate from both NRST and the HST rebate.
What if I'm buying as a long-term rental investment?
Long-term-rental purchases qualify for the same dollar caps under the enhanced NRRPR program — $80,000 maximum for homes ≤$1.5M, phasing down to $24,000 above $1.85M. The mechanics differ from the primary-residence rebate but the cap structure is the same. Speak with a tax advisor before locking in either pathway.
Can the rebate be combined with other Ontario or federal incentives?
The HST rebate stacks with most builder incentives (capped development charges, free assignment privileges, deposit structures). It coordinates with the federal GST New Housing Rebate — the two are not duplicative on the same tax base. Your closing statement reflects the net combined position.
Most coverage of the 2026 Ontario Budget said “13% off any new build.” The actual schedule is much more restrained — generous below $1M, capped at $80,000 between $1M and $1.5M, and a flat $24,000 above $1.85M where most of the luxury market lives. That doesn’t mean the rebate is meaningless on a $5M condo, but it’s not the half-million you may have read. Negotiate the asking price; don’t negotiate against an HST line that isn’t there.
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