Enhanced HST Rebate
For Agreements of Purchase and Sale entered into between April 1, 2026, and March 31, 2027.
$
Total Estimated Rebate
$0
Federal (Max $80K): $0
Ontario (Max $50K): $0
Ontario HST Rebate Calculator
Understanding the Ontario Enhanced New Housing Rebate (ENHR)
The harmonized sales tax (HST) new housing rebate has been updated to provide significant tax relief for eligible home buyers in Ontario. The following details outline the eligibility requirements and mechanics of the temporary ENHR program.
Key Milestone: The Ontario ENHR allows eligible purchasers to qualify for up to $130,000 in combined federal and provincial HST rebates. This consists of up to $50,000 for the federal GST portion and up to $80,000 for the Ontario provincial portion.
Rebate Tiers and Calculations
The enhanced rebate is structured based on the pre-tax purchase price of the home.
| Home Value | Rebate Structure |
|---|---|
| Up to $1 Million | Eligible purchasers receive the full combined rebate (8% federal up to $80,000 and 5% Ontario top-up up to $50,000), maximizing at $130,000. |
| $1 Million to $1.5 Million | Eligible purchasers receive a flat combined rebate of $130,000. |
| $1.5 Million to $2 Million | The combined rebate is phased down based on the purchase price until it is fully eliminated. |
| $2 Million or More | Purchasers do not qualify for the enhanced rebate and are instead subject to the existing Ontario New Housing Rebate rules (maximum provincial rebate of $24,000). |
General Eligibility Criteria
To qualify for the ENHR, buyers must meet several requirements based on existing Ontario New Housing Rebate rules:
- The purchaser must be an eligible individual buying a new or substantially renovated home from a builder.
- The home must be intended for use as the primary place of residence for the purchaser or a qualifying relation.
- The Agreement of Purchase and Sale must be entered into between April 1, 2026, and March 31, 2027.
- All other existing eligibility requirements under Ontario’s current New Housing Rebate program continue to apply.
How the Program Works
For Buyers
- Eligible purchasers can receive the benefit of both the federal and provincial rebates at closing.
- To receive the rebate upfront, buyers must assign both rebates to the builder.
- Buyers must complete the GST/HST New Housing Rebate application (Form GST190) together with the Ontario schedule (RC7190-ON).
- By assigning the rebate, the amount is applied directly against the purchase price, reducing the total amount due on closing.
- Alternatively, purchasers may elect to pay the full HST at closing and apply directly to the CRA for the rebate after the transaction.
For Builders
- Builders are responsible for applying both rebates at closing by crediting the purchaser up to $130,000.
- The builder reports the full HST collected on the regular GST/HST return and claims a deduction only for the 8% federal rebate credited to the purchaser.
- The builder does not claim the 5% Ontario top-up through the GST/HST return. Instead, they submit the completed rebate application, Ontario schedule, and purchaser consent to the CRA.
- Builders will use the existing CRA portal (used for the current Ontario New Housing Rebate) to apply for the assigned rebate.
Administrative Process
- The CRA reviews the application and verifies purchaser eligibility.
- Once verified, the CRA reduces the builder’s HST liability for the provincial portion.
- The CRA shares the necessary information with the Province of Ontario, who then processes the 5% HST top-up payment directly to the builder as reimbursement.
- Ontario’s Ministry of Finance has committed to issuing electronic payments to builders within 30 days of receiving the monthly list of eligible payments from the CRA.