TORONTO — As part of its plan to protect Ontario, lower costs and help more families realize the dream of homeownership, the provincial government is proposing to rebate the full 8 per cent provincial portion of the HST for first-time home buyers on new homes valued up to $1 million. The province’s proposal, which will be included in the 2025 Fall Economic Statement, would save first-time home buyers up to $80,000 off the cost of a new home when combined with existing provincial relief, helping lower costs for first-time home buyers and spurring the construction of more homes. When combined with the federal government’s proposed removal of its 5 per cent portion of the HST, which would save up to $50,000 off the cost of a new home, total savings for first-time home buyers would equal up to $130,000.

Earlier in 2025, the Ontario government called on the federal government to introduce further measures in collaboration with the province to address housing affordability, including removing the HST for first-time home buyers. Subject to passage of federal legislation, Ontario’s new rebate would mirror the federal government’s First-Time Home Buyers’ GST/HST Rebate to temporarily remove the full 8 per cent provincial portion of the HST for first-time home buyers on qualifying newly built and substantially renovated homes.

The new Ontario rebate would be available in addition to the existing Ontario HST New Housing Rebate, which already provides relief of up to $24,000 to eligible purchasers, including but not limited to first-time home buyers. Together with Ontario’s existing HST New Housing Rebate, the new Ontario rebate would provide relief of the full 8 per cent provincial portion of the HST on qualifying new homes valued up to $1 million for first-time home buyers. For homes valued between $1 million and $1.5 million, the new rebate would follow the phased reduction under the proposed federal rebate. That means the rebate would be gradually reduced as the price of a new home increases from $1 million to $1.5 million, to a minimum of $24,000 for homes valued between $1.35 million and $1.5 million. This ensures that the combined amount of relief available under both Ontario rebates would not be less than the amount that is currently provided through the existing Ontario HST New Housing Rebate.

Colin Blachar
Minister Bethlenfalvy’s Office
Colin.Blachar@ontario.ca

Ministry of Finance
Communications Branch
Media.MOF@ontario.ca