Updated June 2026 CRA formulas + 2026 rebates Ontario HST 13%

🔢 How to Calculate HST on a New Home in Ontario (2026)

A plain-English guide to the HST on new homes, the rebates available, and the Canada Revenue Agency formulas — updated for the 2026 federal and Ontario rebate changes. Use the calculator below, then read the full method.

💰 HST & Rebate Calculator

Which rules apply to your purchase?

Home Purchase Price ($)

Enter the price you’re paying for the home (the number on your Agreement of Purchase and Sale). We’ll estimate your HST rebate from it.

📊 Your Result

—

Total Rebate

Federal + Ontario combined

Base Price

Pre-HST

Total HST (13%)

Before rebate

HST After Rebate

Net tax you pay

Federal Rebate

5% portion

Ontario Rebate

8% portion

✅ Yes — that’s real money, and it’s the law.

This isn’t too good to be true. The rebate is set out in Ontario’s Bill 114 (Royal Assent May 12, 2026) and the federal First-Time Home Buyers’ GST Rebate (Bill C-4), and the CRA pays it straight to you. The only catch is the paperwork — which is exactly where most people leave money on the table.

You could get back thousands. Two ways to actually claim it:

The money is yours either way — the only question is who fills out the forms.

Option A · Do it yourself

in fees

You fill out the CRA paperwork yourself (GST190 and the Ontario RC7191-ON)
One wrong box or a missing signature and the CRA can delay or deny the whole claim
You hunt down every invoice, statement of adjustments and closing document
Miss an eligible amount and you quietly leave money on the table
You file, then wait 4–10 weeks — and argue it yourself if they push back
If you are ever audited, untangling it is entirely on you

Free to do — but one small slip can cost you thousands.

What most people do

Option B · Let us file it for you

A small %

of your rebate — and it is there only so we recover every dollar you are owed

A licensed Ontario rebate team with 10+ years and thousands of filings handles it all
They comb every invoice so you claim the maximum you are legally owed — not a dollar less
They deal with the CRA, the follow-ups and any audit questions for you
No upfront fee — they only get paid when your cheque arrives, so they are fully on your side
You sign once, then do nothing but cash the cheque

You pocket the rest — zero hassle, zero risk, nothing out of pocket.

Free review · No upfront cost · We only get paid when you do · Licensed Ontario specialists

Prefer to talk it through? Call 705-533-1633

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Overview: HST and the New Housing Rebate

Buying a new home in Ontario means paying 13% HST, but new homes qualify for rebates that lower the effective tax. There are now three rebate paths. The right one depends on who you are and when you signed your agreement.

The standard New Housing Rebate (the long-standing rules)

This applies to most agreements signed before April 1, 2026 (and to anyone who doesn’t qualify for the newer programs). It has two parts:

Provincial rebate: 75% of the 8% provincial portion of the HST — which works out to 6% of the builder’s base price — up to a maximum of $24,000 (the cap is reached at a $400,000 base price). Available regardless of the home’s price.
Federal rebate: 36% of the 5% federal portion of the HST, up to a maximum of $6,300. Full for base prices of $350,000 or less, then reduced on a sliding scale up to $450,000. No federal rebate once the base price exceeds $450,000.

For agreements on or after March 20, 2025, a first-time buyer can replace the $6,300 federal rebate with the First-Time Home Buyers’ GST Rebate of up to $50,000. For agreements April 1, 2026 – March 31, 2027, Ontario’s enhanced rebate of up to $130,000 applies to all buyers. The calculator above handles all three.

👥 Who Can Claim the HST Rebate?

You may be able to claim a rebate for part of the HST if you meet one of these conditions:

Purchasing from a builder: you buy a newly constructed home (including the land) directly from a home builder.
Self-build or renovation: you build your own home, substantially renovate an existing one, or carry out a major addition (or hire someone to do so).
Alternative dwellings: you buy a new mobile home or floating home from a builder or vendor.
Co-operative housing: you purchase a share of the capital stock of a co-operative housing corporation.
Rebuilding after destruction: your home was destroyed (for example, by fire) and is being rebuilt.

Other conditions apply: the property must be a newly constructed or substantially renovated single-unit residential complex or condominium unit (with the related land) in Ontario, HST must apply at the full 13%, and the agreement must state a price net of the new housing rebate.

🔢 Understanding the HST Components

Total HST is based on the builder’s base price (the “consideration”). Because a builder’s list price often already has HST built in (net of rebate), you sometimes need to work backward to find the base price.

Builder’s base price: the price before HST. The starting point for both the HST and the rebates.
Total HST payable: base price × 13%.
Federal portion of the rebate: 36% of the 5% GST on the base price (full only up to a $350,000 base, phasing out to $450,000).
Provincial portion of the rebate: 75% of the 8% provincial HST on the base price, capped at $24,000.

📋 Step-by-Step HST Calculation

Determine the Stated Price Net of Rebates (SPNR): the builder’s list price after any rebate already built into it.
Calculate the base price: use the formula for your price band to convert the SPNR into the base price.
Calculate total HST: base price × 13%.
Determine the rebates: federal (36% of 5%, phased out $350K–$450K of base) and provincial (75% of 8%, max $24,000).
Apply the rebates: subtract them from the total HST to get the net tax cost.

📑 Price Bands and CRA Formulas (Standard Rebate)

The CRA defines four bands based on the SPNR. Each has its own formula to back out the base price. The worked examples below are calculated from the CRA method.

Band 1 — SPNR up to $368,200 (base price up to $350,000)

Full federal rebate (36% of 5%) and full provincial rebate (75% of 8%).
Base Price = SPNR / 1.052

Example — SPNR $325,000: Base = 325,000 / 1.052 = $308,935.36 (about $16,064.64 of HST is built into the list price). Total HST = $40,161.60. Federal rebate = (308,935.36 × 5%) × 36% = $5,560.84. Provincial rebate = (308,935.36 × 8%) × 75% = $18,536.12. An investor would remit roughly $24,096.96 at closing, then claim it back.

Band 2 — SPNR $368,200 to $424,850 (base $350,000 to $400,000)

Federal rebate phases out; provincial rebate still 75% of 8%.
Base Price = (SPNR + $28,350) / 1.133

Example — SPNR $410,000: Base = (410,000 + 28,350) / 1.133 = $386,893.20. Total HST = $50,296.12. Federal rebate = 6,300 × (450,000 − 386,893.20) / 100,000 = $3,975.73. Provincial rebate = (386,893.20 × 8%) × 75% = $23,213.59.

Band 3 — SPNR $424,850 to $484,500 (base $400,000 to $450,000)

Federal rebate nearly phased out; provincial rebate hits the $24,000 cap.
Base Price = (SPNR + $52,350) / 1.193

Example — SPNR $460,000: Base = (460,000 + 52,350) / 1.193 = $429,463.54. Total HST = $55,830.26. Federal rebate = 6,300 × (450,000 − 429,463.54) / 100,000 = $1,293.80. Provincial rebate = capped at $24,000.

Band 4 — SPNR over $484,500 (base over $450,000)

No federal rebate; provincial rebate stays at the $24,000 cap.
Base Price = (SPNR + $24,000) / 1.13

Example — SPNR $700,000: Base = (700,000 + 24,000) / 1.13 = $640,707.96. Total HST = $83,292.04. Federal rebate = $0. Provincial rebate = capped at $24,000.

Band	SPNR	Base Price	Federal	Provincial
1	up to $368,200	up to $350,000	Up to $6,300	6% of base
2	$368,200–$424,850	$350,000–$400,000	Phasing out	6% of base
3	$424,850–$484,500	$400,000–$450,000	Near $0	$24,000 cap
4	over $484,500	over $450,000	$0	$24,000 cap

📌 Important Points to Remember

Maximum standard rebates: provincial capped at $24,000; federal capped at $6,300 (within the eligible price range).
Sliding scale: the standard federal rebate reduces between a $350,000 and $450,000 base price, and is $0 above $450,000.
Newer programs are bigger: first-time buyers (up to $50,000) and the enhanced Ontario rebate (up to $130,000) far exceed the standard amounts — check whether you qualify before relying on the figures above.
Conditions apply: the property type, Ontario location, the full 13% HST, and the net-price agreement all matter.
Investors: remit any extra HST at closing and apply for the rebate once leasing conditions are met.

Don’t fancy CRA forms? Hand it off.

A specialist files your rebate for you — no upfront fee, paid only when your cheque arrives. Free review, no obligation.

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Frequently Asked Questions

Is the provincial rebate really 6% of the price?

Effectively, yes. The provincial rebate is 75% of the 8% provincial portion of the HST, and 75% × 8% = 6% of the builder’s base price. It is capped at $24,000, which is reached at a $400,000 base price, so any home valued above that still receives $24,000 under the standard rules.

Which rebate should I use?

If your agreement is dated April 1, 2026 to March 31, 2027, the Ontario enhanced rebate (up to $130,000) usually gives the most. If you’re a first-time buyer with an agreement on or after March 20, 2025, the federal $50,000 rebate likely applies. Otherwise the standard rebate (up to $6,300 federal + $24,000 Ontario) applies. The calculator above selects the math for each.

Does the construction method (e.g., ICF) change the rebate?

No. The rebate depends on value and eligibility, not on how the home is built. An ICF home receives the same rebate as a wood-frame home at the same price — and then saves on energy for decades. See our ICF 25-Year Energy Savings Calculator.

Ready to claim your rebate?

Get a free review from a licensed Ontario rebate specialist. We only get paid when you do — no upfront fee, no obligation.

No upfront fee · We only get paid when you do · Or call 705-533-1633

Disclaimer: This guide explains HST on new homes in Ontario using Canada Revenue Agency formulas and the Ontario Ministry of Finance guidance available in June 2026, including the federal First-Time Home Buyers’ GST/HST Rebate (Bill C-4) and Ontario’s enhanced HST rebate (Bill 114). Final federal regulations and rebate forms for the Ontario enhancement were still being released at that time, and rules, thresholds and eligibility can change. The figures are estimates for planning only and are not tax advice. Always confirm with the Canada Revenue Agency and a qualified tax professional before making financial decisions. BuildersOntario.com accepts no liability for decisions made based on this information.

📐 Related Ontario HST rebate calculators

New-home HST rebate calculator — Buying a newly built home? See your rebate (up to $130,000).
First-time buyer GST/HST rebate calculator — Your first home? Check the enhanced first-time buyer rebate.
Major renovation HST rebate calculator — Renovating or rebuilding? Estimate your owner-built rebate.

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4 Comments

Imad Ansari

January 19, 2019 / 10:58 am Reply

Hi,

Great explanation on how to calculate the HST and rebate. This article is from 2013 however. Are the calculations still accurate and relevant for today?
Tony Esposito

June 22, 2021 / 4:07 pm Reply

I can’t buy an empty lot for 500,000. This scale is not relative to houses anymore. Is there an update?
AB

July 21, 2021 / 2:20 am Reply

What is the point of these rebates if you can’t buy any property in a large city for below the rebate cutoff limit?
Anna Maria

April 2, 2026 / 11:09 am Reply

This Tax business will hurt the housing industry, Sadly it also will put firstime buyers to think twice buying in Ontario.

How To Calculate HST On New Homes In Ontario 2025