Ontario Plans Up to $80,000 HST Rebate for First-Time New Home Buyers

The Ontario government has proposed a new measure to rebate the full 8% provincial portion of the Harmonized Sales Tax (HST) for first-time buyers of new homes priced up to $1 million, potentially saving buyers up to $80,000. This rebate, part of the 2025 Fall Economic Statement, aims to make homeownership more affordable amid economic challenges and encourage housing construction. When combined with a matching federal proposal to remove the 5% federal portion of the HST, eligible buyers could save up to $130,000. The rebate would also apply on a sliding scale for homes valued between $1 million and $1.5 million, with a minimum relief of $24,000 for homes priced between $1.35 million and $1.5 million. Industry groups like the Ontario Real Estate Association and the Building Industry and Land Development Association have praised the initiative as a critical step to help first-time buyers and stimulate the housing market. The government emphasizes that this tax relief complements other investments aimed at speeding up construction and reducing costs while creating jobs in construction and skilled trades.