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Vaughan, Ont., March 26, 2026 (GLOBE NEWSWIRE) — The Residential Construction Council of Ontario (RESCON) is pleased that in today’s provincial budget the Ontario government reiterated its commitment to provide HST relief to buyers of new homes up to certain amounts.
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The initiative will remove the provincial portion of the HST on new homes valued up to $1 million, with graduating amounts from $1 million to $1.5 million, and a lesser amount up to $1.85 million.
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When combined with the five-per-cent reduction in taxes promised by the federal government, scrapping the eight-per-cent provincial portion of the HST will bring the total savings to 13 per cent on the new home purchases, helping to lift the industry at a critical time.
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“Premier Doug Ford and his team, and Prime Minister Mark Carney are to be commended for taking this vital step forward as it will spur construction of new homes and boost the building industry,” said RESCON president Richard Lyall. “For consumers, the tax relief helps address affordability concerns as it will result in a rebate of $130,000 on a $1-million home.”
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Details in the provincial budget indicate the rebate will be from one year, from April 1, 2026, to March 31, 2027. The governments say the initiative will stimulate an additional 8,000 housing starts in Ontario next year, supporting up to 21,000 jobs and boosting Ontario’s GDP growth by $2.7 billion.
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Reports done earlier by the Canadian Centre for Economic Analysis for RESCON showed that taxes, fees and levies account for 36 per cent of the cost of a new home and a three-year HST holiday on new homes would help preserve skilled trade jobs and lead to construction of more homes, incentivize buyers to purchase new homes and be revenue neutral for governments, as the increased economic activity would offset foregone tax revenues.
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RESCON has been advocating for the tax cut for some time as the high cost of building has made it difficult for builders to build homes people can afford. The tax burden is a big reason for that.
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“Now that the measures have been announced it is imperative that both the Ontario and federal governments pass legislation quickly to make the changes happen,” added Lyall. “It’s crucial that the adjustments occur as soon as possible. Homebuilding has stalled and the outlook for the industry is grim. Builders and the public need certainty in order to make plans.”
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RESCON is the province’s leading association of residential builders committed to providing leadership and fostering innovation in the industry.
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