Ontario plans full HST break on new homes
· Toronto Sun
OTTAWA — In collaboration with the federal government, Ontario is expanding eligibility for an HST break on new homes.
Visit xsportfeed.life for more information.
Last October, the Doug Ford Progressive Conservatives announced a full rebate on the provincial (8%) portion of the HST for first-time homebuyers on properties worth up to $1 million — but ahead of Thursday’s provincial budget, Ontario plans to extend that rebate by absorbing the full 13% HST for all eligible homebuyers.
Provincial Housing Minister Rob Flack, speaking to reporters from a Wednesday morning press conference at a Mississauga construction site, said it takes too long and costs far too much to build homes in Ontario — something he hopes measures like these will change.
“Over 70% of people looking to buy a home are doubtful they ever will,” he said.
“That’s not acceptable — for a nation and province as prosperous as ours, this reality needs to change, and we’re changing it here today.”
Announcement part of Ontario’s 2026 budget
The move will remove the full 13% HST for new homes up to $1 million, to a maximum of $130,000.
That $130,000 maximum will be maintained for homes valued up to $1.5 million, decreasing incrementally for homes over that number to $24,000 for homes $1.85 million and above.
The program will be partially funded via money from the federal government that would cover the federal portion of the HST, or 5% — amounting to around $2.2 billion in joint tax relief.
This proposal is part of the province’s 2026 budget, set to be released on Thursday.
More details, as well as details on eligibility requirements, are still set to be released.
Ford, speaking to reporters from a Mississauga construction site, said the move is part of a larger plan to make Ontario more resilient to pressures from south of the border and around the world, and make home ownership an achievable goal for more Ontarians.
“For most families in Ontario, buying a home is the biggest financial decision they will make in their lives, but for too many families, the dream of home ownership is being pulled out of reach by high costs and economic uncertainty,” the Premier said.
“One of the biggest factors in the increased cost of housing is government taxes, fees and development charges that add hundreds of thousands of dollars to the cost of a new home.”
Announcement ‘cherry on the top of the sundae,’ Mississauga mayor says
Ford said his government has worked hard to reduce those fees and get more shovels in the ground
Among those most pleased about the announcement was Mississauga Mayor Carolyn Parrish, who referred to Ford as “her hero” during the press conference.
“We have done everything we can possibly do as a municipal government, like cutting DCs (development charges) on multi-bedroom units to zero, cutting DCs on other units by 50%, we’ve done everything humanly possible to make building homes faster, less expensive and better here in Mississauga,” she said.
“This today … is actually the cherry on the top of the sundae. It’s absolutely what we needed to keep housing going.”
Parrish said the city is currently processing 17,000 units right now, which she described as “remarkable,” and said Wednesday’s announcement will almost certainly double that number.