Today, Doug Ford, Premier of Ontario, the Hon. Peter Bethlenfalvy, Ontario Minister of Finance, the Hon. Rob Flack, Ontario Minister of Municipal Affairs and Housing, accompanied by Carolyn Parrish, Mayor of Mississauga, announced the removal of the harmonized sales tax on new homes under $1 million and a reduction of the HST for new homes between $1 million and $1.85 million, for all new home buyers, for the next year.
 
This announcement is a direct reflection and result of BILD and OHBA’s comprehensive and consistent advocacy efforts over the last several months.
 
Scott Andison, OHBA’s Chief Executive Officer, and Dave Wilkes, BILD’s President and CEO, were present at today’s press conference.
 
Copies of the Ontario/federal government news releases can be accessed here, and a copy of the BILD/OHBA joint release on the announcement can be accessed here.
 
This measure will take effect on April 1, 2026, and will run until March 31, 2027.
 
A full 13 per cent sales tax reduction will apply to new homes with a purchase price under $1 million for all buyers of new homes, and where the home is to be used as their principal residence. The change will provide a flat $130,000 sales tax reduction for new homes between $1 million and $1.5 million, and for amounts between $1.5 million and $1.85 million, a declining tax reduction from $130,000 to the existing $24,000 provincial rebate amount. New homes in excess of $1.85 million will continue to receive the $24,000 provincial rebate.
 
Only purchases of new homes made on or after April 1, 2026 are eligible for the sales tax reduction/exemption. Per Ontario government officials, the rebate/tax reduction can be signed back to the vendor on the agreement of purchase and sale (APS). The current sales tax rules will continue to apply for existing signed agreements of purchase and sale.

As currently defined within the regulations, substantially renovated new homes are treated as new housing for tax purposes and are included in this new policy measure.

Today’s announcement is the result of years of advocacy work. This latest policy change is designed to reduce upfront homeownership costs, help restore momentum in Ontario’s housing market, and directly support the continued construction of new homes to meet the needs of Ontario’s growing population. BILD and OHBA have been consistently advocating for this measure to help support the industry, member companies, and their employees in light of the downturn in sales from 2022 onwards. We have been vocally steadfast that the first-time new home buyers’ program is insufficient. 
 
BILD and OHBA are partnering with MNP to provide members with implementation guidance during a webinar scheduled for April 7th at 9:00 am. Members can register at BILD/OHBA MNP SALES TAX WEBINAR. A form to collect member questions will be circulated prior to the webinar.  
 
As part of our joint advocacy, OHBA, BILD and Peter Norman, Vice-President and Economic Strategist at Altus Group, developed two background papers. The first, presented to Minister Bethlenfalvy, Minister Flack and federal government representatives, summarized the economic impact of the current downturn on our sector and assessed the impact of full HST relief. The second, presented to Minister Mulroney and shared with the Premier’s Office, Minister Bethlenfalvy, Minister Flack, and federal representatives, demonstrated the combined impact of full HST relief and a 50 per cent reduction in development charges (DCs) across Ontario.
 
BILD and OHBA will continue to work with both the federal and provincial government to implement structural and material DC reductions. In order to support our advocacy on this front, we commissioned Daryl Keleher of KPEC to provide a roadmap  on how to achieve this objective. This paper has been presented to both the provincial and federal governments and selected municipalities.
 
Please do not hesitate to reach out to any of the following with questions.

Dave Wilkes                dwilkes@bildgta.ca                 (416) 565-7326
Scott Andison             sandison@ohba.ca                 (416) 525-8071
Justin Sherwood         jsherwood@bildgta.ca            (416) 371-6005
Kirstin Jensen             kjensen@ohba.ca                   (905) 933-7874