As of March 2026, the Ontario government announced it will waive the 8% provincial portion of the Harmonized Sales Tax (HST) on all newly built homes (up to $1 million) to stimulate the housing market. This temporary tax relief is being expanded from a previous, more limited program intended for first-time buyers.
Key Details on the Ontario New Home HST Waiver (2026):
- Scope: The exemption applies to all homebuyers of newly constructed homes, not just first-time buyers.
- Value Limit: The waiver applies to new homes valued up to $1 million.
- Purpose: The initiative is designed to address a “standstill” in the Ontario housing market, encourage construction, and increase supply.
- Timing: The announcement was made in late March 2026, leading into the provincial budget, with anticipation that the removal of the tax will boost housing starts.
- Impact: This measure aims to save homebuyers up to $80,000 in provincial sales tax, reducing the overall cost of new construction.
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