The Biggest Housing Policy in Years — Full HST Removal
Effective April 1, 2026, Ontario has removed the full 13% HST (both the 5% federal GST and 8% provincial PST) on new construction homes priced up to $1 million. This is a one-year program ending March 31, 2027, and Ontario Finance Minister has confirmed it will NOT be extended.
How Much You Save
| Home Price | HST Saved |
|---|---|
| $500,000 | $65,000 |
| $700,000 | $91,000 |
| $1,000,000 | $130,000 |
| $1,500,000 | $130,000 (max maintained) |
| $1,850,000+ | $24,000 (tapered) |
Who Qualifies
- ALL buyers — not just first-time buyers
- Purchase agreement signed between April 1, 2026 and March 31, 2027
- Construction must begin by December 31, 2028
- Construction must be completed by December 31, 2031
- Includes pre-construction purchases
Cost-Sharing
The federal government covers the 5% GST portion; Ontario covers the 8% provincial portion. The combined package is worth approximately $2.2 billion in tax relief.
Combined with Development Charge Cuts
On March 30, PM Carney and Premier Ford announced an $8.8 billion housing partnership that includes 50% cuts to development charges for 3 years. Combined with the HST removal, this can reduce taxes and fees by up to $200,000 per new home.
What This Means for You
This is a time-limited window. If you've been considering new construction, the next 12 months represent the lowest-cost opportunity in a generation. Pre-construction projects in Milton, Pickering, Brampton, and Vaughan are already seeing increased interest.
Act now — the Finance Minister has explicitly stated this will not be extended. Contact us to explore new construction opportunities in the GTA.
This article provides general information only. Consult with a tax professional or real estate lawyer for advice specific to your situation. Sources: Ontario Budget 2026, CBC, Global News.