MPP Oosterhoff Welcomes Expansion of Harmonized Sales Tax Rebate to Lower Cost of New Homes

March 25, 2026

Beamsville – The Ontario government is continuing to lower costs and help families realize the dream of homeownership by removing the full thirteen percent of the Harmonized Sales Tax for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000, as part of the upcoming 2026 Budget. This maximum rebate of $130,000 would be maintained for new homes valued up to $1.5 million, and would decrease proportionally from $130,000 at $1.5 million to a maximum of $24,000 for homes valued at $1.85 million and above, building on the province and federal government’s previous move to rebate the Harmonized Sales Tax for all first-time buyers of new homes up to $1 million.

The federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, subject to passage of federal legislation, which would approximately cover the federal five percent portion of the Harmonized Sales Tax that is being removed from new homes in Ontario. This partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario.

“Our government is protecting Ontario and building Niagara by enabling more housing and ensuring the dream of homeownership is a reality for more people,” said Sam Oosterhoff, MPP for Niagara West.

“Under the leadership of Premier Ford, we will continue fighting for the people of Ontario by making life more affordable, spurring growth and strengthening our economy.”

“In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7,” said Hon. Doug Ford, Premier of Ontario.

“This proposed tax measure will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy by $2.7 billion.”

Ontario’s proposal would strengthen the existing provincial Harmonized Sales Tax New Housing Rebate and New Residential Rental Property Rebate for one year, from April 1, 2026, to March 31, 2027, temporarily removing the Harmonized Sales Tax for eligible buyers of qualifying new homes. For new homes valued at or above $1.5 million, a reduced rebate will be available. Higher-valued new homes that would have qualified for the maximum rebate of $24,000 under the current rules will qualify for at least that amount under the expansion. The expanded thirteen percent Harmonized Sales Tax rebate could stimulate an additional 8,000 housing starts in Ontario next year, supporting up to 21,000 jobs and boosting Ontario’s Growth Domestic Product growth by $2.7 billion.

“Ontarians have seen costs increase as a result of ongoing economic uncertainty, so it is more important than ever that we continue to keep costs down to make life more affordable for families and individuals,” said Hon. Peter Bethlenfalvy, Minister of Finance.

“With this enhancement and expansion of the Harmonized Sales Tax rebates, we are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives.”

In addition to these measures, Ontario is expanding the Harmonized Sales Tax relief for first-time home buyers on new homes announced last fall, taking steps to align the effective date of the provincial Harmonized Sales Tax rebate for first-time home buyers with the federal government’s newly proposed earlier effective date of March 20, 2025.

“Homeownership is a cornerstone of Ontario’s economic success,” said Hon. Rob Flack, Minister of Municipal Affairs and Housing.

“Ontario thrives only when its people thrive. That is why our government is taking this massive step forward to protect Ontario by creating conditions to get more shovels in the ground, build more homes faster and help make the dream of homeownership a reality for more people.”

The government is acting with a suite of measures to help increase the supply of affordable homes, support housing development and foster a robust housing industry across Ontario. This includes removing the full eight percent provincial portion of the Harmonized Sales Tax on qualifying purpose-built rental housing. The province is also providing historic housing-enabling infrastructure funding through the $4 billion Municipal Housing Infrastructure Program and $1.2 billion Building Faster Fund, which rewards eligible municipalities that make real progress in getting shovels in the ground to build new homes.

More information about how the government continues to make progress on its plan to protect Ontario, by making Ontario one of the most competitive places to invest and do business in the G7 by building a more competitive, more resilient and more self-reliant economy, will be included in the 2026 Budget.