Canada's New GST/HST Rebate For First-Time Home Buyers (2026)

If you’re a first-time buyer eyeing a new build, the math just changed. The federal government’s First-Time Home Buyers’ GST/HST Rebate received Royal Assent on March 12, 2026, and Ontario tabled its own provincial rebate two weeks later. Stacked together, eligible buyers in Toronto and across Ontario could see up to $130,000 in tax relief on a new home.

The federal rebate (now in effect)

The federal program eliminates the GST (or the 5% federal portion of the HST) on new homes for qualifying first-time buyers. The structure:

• Up to $1,000,000 — full rebate, up to $50,000
• $1,000,001 – $1,500,000— partial rebate, phasing out linearly
• Over $1,500,000— no rebate

To qualify, your purchase agreement with the builder must be signed between March 20, 2025 and the end of 2030, the home must be your principal residence, and you must meet the standard CRA first-time-buyer definition (you and your spouse or common-law partner haven’t owned a home anywhere in the world in the four prior calendar years).

Ontario’s proposed provincial rebate

On March 26, 2026, the Ontario budget proposed a temporary removal of the full 8% provincial portion of the HST for eligible first-time buyers of new homes. The proposal:

• Up to $1,000,000 — up to $80,000 rebate
• $1,000,001 – $1,500,000— capped at $80,000, phased
• Purchase agreement must be signed between April 1, 2026 and March 31, 2027

At the time of writing the Ontario program is proposed; passage and final details are still working through the legislature. I’ll update this post as the rules finalize.

What this looks like in practice

On a $950,000 new build in Toronto for a qualifying first-time buyer, the combined federal + provincial rebate could be in the range of $110,000+— before you even factor in the existing Ontario and Toronto Land Transfer Tax rebates of up to $8,475. That changes affordability calculations dramatically.

Important catches

• New builds only.Resale homes don’t qualify — GST/HST isn’t charged on resale, so there’s nothing to rebate.
• Substantial renovations may countas “new” for the rebate — CRA has specific rules.
• Assignment saleshave their own treatment — talk to a tax professional before signing.
• The $1.5M ceiling is hard. Even one dollar over and the rebate disappears entirely.

Combining with other first-time buyer programs

These rebates stack with other federal and provincial programs first-time buyers can use:

• First Home Savings Account (FHSA)— up to $40K tax-free
• RRSP Home Buyers’ Plan— up to $60K tax-free withdrawal
• Ontario LTT rebate— up to $4,000
• Toronto MLTT rebate— up to $4,475

You can model the impact yourself with the mortgage calculators on this site — the Land Transfer Tax and Purchase calculators apply first-time-buyer rebates automatically when you toggle the switch.

Bottom line

Anyone considering a new build in 2026 needs to know about these rebates — they’re a meaningful piece of the puzzle. If you’re unsure whether your situation qualifies, send me the contract details and I’ll walk through the eligibility and timing math with you directly.

Sources: Canada Revenue Agency, 2026 Ontario Budget.