Ontario Removes Full 13% HST on New Homes Under $1M Until March 2027 — Up to $130,000 in Savings

Ontario's HST removal on new homes is now in effect — and it's the biggest single tax break for homebuyers in decades. If you're buying a new build under $1 million, you no longer pay the 13% HST that used to add tens of thousands to your purchase price. Homes between $1M and $1.5M qualify for a flat $130,000 reduction. The program runs until March 31, 2027.

Here's what this actually means in dollars, who qualifies, and how to make sure you capture this benefit before it expires.

The Savings by Price Point

Before this change, buying a new build in Ontario meant paying 13% HST on top of the purchase price — a cost that often wasn't obvious to buyers until late in the process. That tax is now gone for homes under $1M, and significantly reduced for homes between $1M and $1.5M.

Purchase Price	Old HST Cost	New HST Cost	Your Savings
$600,000	$78,000	$0	$78,000
$750,000	$97,500	$0	$97,500
$999,999	$129,999	$0	~$130,000
$1,200,000	$156,000	$26,000	$130,000
$1,500,000	$195,000	$65,000	$130,000
Over $1,500,000	Full 13%	Full 13%	$0

Who Qualifies?

The removal applies to new residential construction — meaning units built but not previously occupied. Here's the eligibility breakdown:

How This Stacks With Other 2026 Buyer Incentives

The HST removal doesn't exist in isolation. It's part of a stack of policy changes that have meaningfully shifted the economics of buying new in Ontario:

• HST Removal: Up to $130,000 in direct tax savings on new homes under $1M.
• 30-Year Amortizations: Now available on any insured mortgage under $1.5M — reducing monthly payments by ~$1,000/month on a $1.4M purchase compared to 25-year terms.
• Raised Insured Mortgage Cap: The insured mortgage cap increased from $1M to $1.5M, meaning buyers can now put as little as 5–10% down on homes up to $1.5M with CMHC insurance.
• FHSA: First Home Savings Account allows $8,000/year in tax-deductible contributions (lifetime limit $40,000 per person, $80,000 per couple), which can be used for the down payment.

For a first-time buyer purchasing a new $800,000 condo, the combined effect of these programs can reduce upfront costs by $80,000+ and lower monthly carrying costs by $400–$600/month compared to what the same purchase would have cost in 2024.

The Pre-Construction Window Is Shrinking

There's a practical urgency here that most buyers miss. Pre-construction projects take 18–48 months to complete. For you to benefit from the HST removal, you need to purchase and occupy before March 31, 2027.

That means:

• If you're buying a new condo that completes in late 2026 or early 2027 — you're in the window.
• If you're buying pre-construction that doesn't complete until 2028 — you may miss the deadline depending on the specific legislation and your closing date.
• New detached and semi-detached homes with occupancy in 2026 are the cleanest play.

What Builders Are Doing With the Savings

One thing worth watching: some builders have been factoring the HST savings into their pricing — i.e., they've held prices higher than they otherwise would because they know buyers are saving $80K–$130K on tax. This is normal market behaviour, and it's not a reason to avoid new construction. But it does mean you should:

• Compare new build pricing carefully against nearby resale comps.
• Negotiate on upgrades, parking, and storage locker inclusions rather than base price.
• Work with an agent who knows the specific builder's current incentives (assignment clauses, extended deposit structures, free upgrade packages).

Builders are motivated right now. Many projects are still in pre-sales and need to hit occupancy thresholds before construction begins. That gives buyers real leverage — if you know how to use it.