Last Updated On 25 March 2026, 11:24 AM EDT (Toronto Time)
On March 25, 2026, the Ontario government announced a proposed expansion of its HST rebate program beyond first-time home buyers.
Ontario announced a proposal that would, from April 1, 2026 to March 31, 2027, expand HST relief for eligible buyers of qualifying new homes, with up to $130,000 in combined relief.
The announcement came one day before the provincial 2026 Budget release scheduled for March 26, 2026.
Eligible purchasers acquiring qualifying new homes as a primary residence or as a residential rental property would be covered under the proposed expansion, while other eligibility rules would remain the same.
The expanded program could stimulate an additional 8,000 housing starts in Ontario next year, according to the official government announcement.
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What Changed on March 25, 2026
Ontario announced a proposal to temporarily expand its existing HST New Housing Rebate and New Residential Rental Property Rebate programs for one year.
Ontario said the temporary enhancement is intended to stimulate housing construction during a period of economic uncertainty.
If approved, the proposed measure would run from April 1, 2026 through March 31, 2027.
Here is what the proposed program would offer:
| Home Value | Maximum HST Rebate |
| Up to $1 million | $130,000 (full 13% HST) |
| $1 million to $1.5 million | $130,000 (maintained) |
| $1.5 million to $1.85 million | Decreases from $130,000 to $24,000 |
| $1.85 million and above | $24,000 (existing rebate floor) |
A key feature of the proposal is that the maximum $130,000 rebate would be maintained for homes valued between $1 million and $1.5 million.
Under the first-time buyer framework, the rebate did not remain at the maximum amount beyond $1 million.
Under the proposed expansion, eligible buyers of homes up to $1.5 million would still receive the full maximum benefit.
Proposed Window: April 1, 2026 to March 31, 2027
Ontario described the expanded rebate as a temporary one-year measure aimed at stimulating the housing market during uncertain economic times.
Ontario says the proposal would run from April 1, 2026 through March 31, 2027, if approved.
Premier Doug Ford framed the announcement within the context of economic challenges facing Ontario.
“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” Ford said in the official announcement.
Finance Minister Peter Bethlenfalvy emphasized the timing of the relief, noting that Ontarians have seen costs increase due to ongoing economic uncertainty affecting Canadian households.
“With this enhancement and expansion of the HST rebates, we are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives,” Bethlenfalvy said.
Federal Government to Cost-Share if Legislation Passes
Ontario said the federal government has agreed to cost-share this initiative.
Together, the federal and provincial relief would provide up to the announced maximum combined rebate of $130,000 for eligible qualifying new homes, subject to legislation and final program rules.
Ontario says the total joint tax relief would be almost $2.2 billion.
The cost-sharing arrangement is subject to passage of federal legislation.
Ontario also said it will continue working with the federal government on implementation details.
Further details are expected after the 2026 Ontario Budget.
Expected Economic Impact
Ontario projects significant economic benefits from the proposed expansion.
The March 25 release says the expanded HST relief could have a meaningful impact on Ontario’s housing construction industry and broader economy.
| Metric | Projected Impact |
| Additional Housing Starts | 8,000 homes |
| Jobs Supported | Up to 21,000 |
| GDP Growth Boost | $2.7 billion |
| Total Tax Relief (Fed + Provincial) | $2.2 billion |
Ontario says the measure could stimulate an additional 8,000 housing starts.
The release also says the proposal could support up to 21,000 jobs and increase GDP by $2.7 billion.
Who Would Qualify Under the Proposal
The proposed expansion would apply through Ontario’s existing New Housing Rebate and New Residential Rental Property Rebate frameworks.
New Housing Rebate: purchasers of a qualifying new or substantially renovated home intended for use as a primary place of residence would remain covered under the existing framework.
The proposed temporary expansion would not be limited to first-time home buyers.
Other eligibility requirements would otherwise remain the same.
New Residential Rental Property Rebate: purchasers of a qualifying new or substantially renovated home intended for use as a residential rental property would also remain covered under the existing framework.
Ontario says other eligibility requirements for that rebate would remain unchanged as well.
The March 25 release does not add a new standalone buyer class; it expands relief within the existing rebate structures for eligible purchasers.
Other eligibility requirements from the existing rebate programs would remain unchanged.
Buyers should review the official Ontario guidance once further details are released.
What Properties Are Covered
The March 25 release refers to eligible buyers of qualifying new homes and says other existing eligibility rules would remain the same.
The release does not publish an exhaustive property-type list for the temporary expansion.
The key requirement described in the release is that the proposal would apply through the existing rebate frameworks for qualifying new homes, with other eligibility rules unchanged.
Typical resale homes that do not fall within those frameworks are not covered by this announcement.
First-Time Buyers Get Earlier Effective Date
Ontario also announced it is aligning the effective date of the provincial HST rebate for first-time home buyers with the federal government’s newly proposed earlier effective date.
This means both the provincial and federal rebates for first-time buyers will apply to agreements of purchase and sale entered into on or after March 20, 2025.
The deadline for purchase agreements remains December 31, 2030.
First-time home buyers who signed purchase agreements between March 20, 2025 and May 26, 2025 would become eligible under the aligned earlier effective date, according to the release.
Ontario says this change aligns the provincial effective date with the earlier date announced for the federal first-time buyer rebate.
Further details for first-time buyers are expected in the budget materials and official program guidance.
First-Time Buyers vs. All Eligible Buyers
The table below reflects the March 25 announcement and distinguishes the ongoing first-time buyer measure from the proposed one-year expansion for other eligible buyers.
| Feature | First-Time Buyers | All Eligible Buyers |
| Maximum Rebate | $130,000 | $130,000 |
| Effective Date | March 20, 2025 | April 1, 2026 |
| End Date | December 31, 2030 | March 31, 2027 |
| Property Types | Primary residence only | Primary residence or rental |
| $1M-$1.5M Homes | Partial rebate (phase-out) | Full $130,000 maintained |
| Eligibility Rules | Must meet first-time buyer rules | Existing program rules remain unchanged |
First-time buyers would still have a longer application window under the separate first-time buyer measure.
Ontario says the proposed one-year expansion for all eligible buyers would maintain the full rebate up to $1.5 million.
How Much Relief the Announcement Describes
The March 25 release does not provide worked examples for every purchase price.
What it does say is that eligible buyers of qualifying new homes valued up to $1 million could receive up to $130,000 in combined relief, that the full amount would be maintained up to $1.5 million, and that the rebate would then decline proportionally to at least $24,000 for homes valued at $1.85 million and above.
At $1 million, the combined maximum relief described in the announcement would be $130,000.
For homes above $1 million and up to $1.5 million, the announcement says the full $130,000 maximum would still apply.
Between $1.5 million and $1.85 million, the rebate would decrease proportionally.
At $1.85 million and above, the announcement says at least $24,000 would remain available.
What Will Be the Application Process
Ontario says further implementation details will be provided after the 2026 Budget.
The March 25 release does not set out final application forms, filing steps, or whether relief would be credited at closing or claimed afterward.
Ontario also says it will continue working with the federal government on implementation details.
Ontario said further details would be released following the 2026 Budget on March 26, 2026.
Buyers should watch for official guidance from Ontario on eligibility and implementation after the budget.
Because federal cost-sharing remains subject to legislation, the timing and mechanics of the federal portion will depend on that process.
Monitor official Ontario announcements and budget documents for final program details.
The proposed one-year window runs from April 1, 2026 to March 31, 2027, if approved.
Buyers considering new construction may want to watch closely for implementation details tied to contracts, closing dates, and eligibility rules.
Key Dates Mentioned in the Announcement
These dates reflect the March 25 announcement and the timelines Ontario referenced in the release.
| Date | Milestone |
| March 20, 2025 | Earlier effective date for first-time buyer agreements |
| March 25, 2026 | Ontario announces proposed expanded rebate for eligible buyers |
| March 26, 2026 | Ontario 2026 Budget release with further details expected |
| April 1, 2026 | Proposed start date for expanded rebate window |
| March 31, 2027 | Proposed end date for expanded rebate window |
| December 31, 2030 | Deadline for first-time buyer purchase agreements |
Ontario’s March 25, 2026 announcement would expand HST relief for eligible buyers of qualifying new homes beyond first-time purchasers for a one-year period, if approved.
Under the proposal, the full maximum rebate would be maintained for eligible homes valued up to $1.5 million.
Ontario also says eligible purchasers acquiring qualifying new homes for residential rental use would remain covered under the existing rebate framework.
The proposal would run from April 1, 2026 to March 31, 2027, while federal cost-sharing remains subject to legislation.
Prospective buyers should watch for the 2026 Budget and subsequent official guidance before relying on specific implementation details.
The March 25 release presents the measure as part of Ontario’s broader effort to support affordability, housing construction, and jobs.
Readers should review the final budget documents and official program guidance for eligibility and implementation details before making financial decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Program details are based on the official Ontario government announcement released on March 25, 2026 and may change as further budget and implementation details are published.
Frequently Asked Questions (FAQs)
Can I qualify for the expanded rebate if I already own a home?
Yes, the proposed one-year expansion, announced on March 25, 2026, would extend relief beyond first-time buyers. Ontario says eligible purchasers of qualifying new homes intended for use as a primary residence, as well as eligible residential rental properties under the existing rebate frameworks, would be covered if the measure proceeds.
Does the expanded rebate apply to resale homes or only new construction?
The announcement applies to qualifying new homes and existing rebate frameworks. Typical resale homes that do not fall within those frameworks are not covered by this measure.
What happens if I sign a purchase agreement in March 2026 but the home is not completed until after March 31, 2027?
The March 25 release does not provide full completion or closing rules for the proposed expansion. Buyers should watch the 2026 Budget and subsequent official guidance for those details.
Are condominiums and townhouses eligible for the expanded HST rebate?
The March 25 release does not publish an exhaustive property-type list. It refers to eligible buyers of qualifying new homes and says other existing eligibility rules would remain unchanged.
Will I receive the rebate at closing or do I have to apply afterward?
Ontario has not yet published final application steps for the proposed expansion. The March 25 release says further implementation details will be provided after the 2026 Budget and that Ontario will continue working with the federal government on implementation.
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