Ontario HST New Home Rebate Calculator
A newly built home in Ontario carries 13% HST, a tax resale homes never see. The federal and Ontario new housing rebates take a big bite out of it, and this calculator shows exactly how big. It runs on the same tax engine as the full Headroom calculator, using 2026 rates.
How HST works on a new build in Ontario
Ontario's 13% HST is really two taxes stacked together: the 5% federal GST and an 8% provincial portion. Both apply to newly built and substantially renovated homes, and both come with a rebate. The rebates have different rules, so it helps to look at them side by side.
| Portion of the HST | Rate | Rebate |
|---|---|---|
| Federal GST | 5% | 36% back, capped at $6,300. Full up to $350,000, phasing out to zero at $450,000. |
| Federal GST, first-time buyer | 5% | Since 2025, first-time buyers get 100% back on homes up to $1,000,000, phasing to zero at $1,500,000. |
| Ontario portion | 8% | 75% back, capped at $24,000, with no upper price limit. The cap is reached at $400,000, so every Ontario new build at $400,000 or more gets the full $24,000. |
Buying new in a province with no HST, like Alberta or BC? Only the 5% GST applies there. The GST new housing rebate calculator covers those provinces.
The sticker price usually has this baked in
For owner-occupiers, builders almost always advertise a price that is "HST included, rebate assigned to the builder." You agree to sign the rebates over, the builder claims them from the CRA, and the price you were quoted already nets them out. The gross HST only lands on you if you do not qualify for the rebate you assigned, so read the agreement of purchase and sale carefully.
Buying as an investor?
The new housing rebate is for homes you or a close relation will live in. Investors who lease the unit out can usually claim the New Residential Rental Property rebate (NRRP) instead, similar money but claimed after closing with a one-year lease in hand. This calculator does not model the NRRP.
A worked example
On a $600,000 new build in Ontario, the HST before rebates is $78,000. The new housing rebates take off $24,000 (the full Ontario cap; the federal rebate is long gone at this price), leaving $54,000 of HST owed after rebates.
If you are a first-time buyer, the 2025 federal rebate wipes out the entire GST portion too. The rebates climb to $54,000 and the HST owed drops to $24,000.
Common questions
Is HST charged on resale homes?
No. Resale homes are exempt, which is why nobody mentions HST when you buy a 30-year-old house. HST applies to newly built homes, presale condos, and substantially renovated homes sold by a builder.
What is the $24,000 Ontario cap?
Ontario rebates 75% of its 8% portion of the HST, to a maximum of $24,000. The maximum is hit at a $400,000 price, and unlike the federal rebate it never phases out, so every Ontario new build at $400,000 or more gets the full $24,000 back.
Who qualifies for the 2025 first-time buyer GST rebate?
First-time buyers purchasing a new build to live in as their primary residence. It refunds 100% of the GST on homes up to $1,000,000, then phases out to zero at $1,500,000. On a $600,000 home that is the difference between $24,000 and $54,000 in total rebates.
What does "rebate assigned to builder" mean?
Instead of you paying the full HST and claiming the rebates back later, you sign the rebates over to the builder and the builder credits them against the price. It is the standard arrangement for owner-occupiers, and it is why builder pricing usually says "HST included."
Planning the whole purchase, not just the HST?
Headroom folds new-build tax into your full picture: the mortgage, CMHC insurance, the stress test, land transfer tax, and the rest of your closing costs, for every province, free and with nothing leaving your browser.
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