Overview
- Ontario, which announced the plan Wednesday, will remove the full 13% Harmonized Sales Tax on eligible purchases of newly built homes made from April 1, 2026 to March 31, 2027.
- Finance Minister Peter Bethlenfalvy ruled out any extension on Friday, calling it a one-year sale meant to boost affordability and spur building.
- Eligible buyers can receive up to $130,000 off new homes priced up to $1.5 million, with smaller rebates down to $24,000 at $1.85 million or more, and the home must be a primary residence or a residential rental property.
- The province pegs its revenue loss at about $1.4 billion and says joint provincial–federal relief totals roughly $2.2 billion, projecting about 8,000 extra housing starts, up to 21,000 jobs, and a $2.7 billion GDP lift.
- Ottawa tabled Bill C-26 on Thursday to provide a one-time $1.7 billion fund to help provinces cut building costs, and Ontario says the federal share of the HST removal will proceed once Parliament passes the needed legislation.