Understanding Ontario's New Home Tax Relief: Up to $130,000 in Savings for Eligible Homebuyers

The Ontario government has introduced significant tax relief measures to make new homes more affordable. For eligible purchasers buying directly from a builder, the combined relief can reach up to $130,000, making homeownership more attainable while supporting new housing construction.

Here's what homebuyers need to know.

Up to $130,000 in Combined Tax Relief

The maximum benefit is made up of two separate Ontario programs:

• Ontario Enhanced New Housing Rebate (ENHR) – Provides relief for the provincial portion of HST, up to $80,000.

• Ontario New Homeowner Assistance Program (ONHAP) – Provides additional relief of up to $50,000 after applicable federal GST rebates are taken into account.

Together, eligible purchasers may receive up to $130,000 in tax relief, depending on the purchase price and eligibility.

How Much Can You Save?

Home Price (Before HST)	Potential Combined Relief
Up to $1,000,000	Up to $130,000
$1,000,001 – $1,500,000	Up to $130,000
$1,500,001 – $1,850,000	Reduced amount
$1,850,000 or more	Up to $24,000 (existing Ontario rebate only)

The available relief gradually decreases for homes priced between $1.5 million and $1.85 million. Homes priced at $1.85 million or more are not eligible for the enhanced rebate or ONHAP, although the existing Ontario New Housing Rebate of up to $24,000 remains available.

Who Is Eligible?

For purchases directly from a builder, purchasers generally must meet the following requirements:

• Purchase a newly built or substantially renovated home.

• Use the home as their primary residence (or have an eligible relative occupy it).

• Be the first person to occupy the home after construction.

• Sign the Agreement of Purchase and Sale between April 1, 2026 and March 31, 2027.

• Purchase a home with a value (excluding HST) of less than $1.85 million.

• Meet the required construction commencement and completion timelines established by the program.

What About Assignment Sales?

Assignment purchases may also qualify, provided:

• Both the original Agreement of Purchase and Sale and the assignment agreement were generally entered into between April 1, 2026 and March 31, 2027.

• Simply amending an older agreement generally does not make it eligible.

How Are the Savings Received?

Many builders may choose to credit the eligible rebate amounts directly to purchasers at closing, reducing the amount buyers need to bring on closing day. Builders then complete the required documentation and apply through the appropriate government process. If a builder does not provide the credit, eligible purchasers may generally apply directly after closing.

Why This Matters

For many buyers, closing costs can be one of the biggest hurdles to purchasing a new home. These enhanced Ontario programs can significantly reduce those costs and improve affordability, particularly for first-time purchasers and families looking to move into a newly built home.

Depending on the purchase price and eligibility, buyers could save up to $130,000, making now an excellent time to explore new construction opportunities.

Speak with the inCAN Sales Team

Every purchaser's situation is different, and eligibility depends on several factors, including the purchase price, intended occupancy, and program requirements.

If you're considering purchasing a new home, our sales team can help you understand how these programs may apply to your purchase and estimate your potential savings.

Visit our Sales Gallery📍 60 South Town Centre Blvd., Unit A, Markham

This article is provided for general information only and should not be considered legal, accounting, or tax advice. Eligibility for government programs is subject to applicable legislation and program requirements. Purchasers should consult their legal or tax advisor regarding their individual circumstances.