Business Tax

Ontario 5% HST Top-Up on New Homes: How It Works (2026)

By July 22, 2026 No Comments
5% HST Top-Up5% HST Top-Up
This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

— Quick Answer

Yes. Ontario is providing a temporary 5% top-up equivalent to the full federal portion of HST, worth up to $50,000 on eligible new homes valued up to $1 million, on top of the Ontario Enhanced New Housing Rebate (ENHR) that covers the 8% provincial portion. To qualify for the top-up, the buyer must first qualify for the Ontario ENHR, which generally requires an Agreement of Purchase and Sale signed between April 1, 2026 and March 31, 2027. Builders can credit the 8% ENHR at closing, but they cannot credit the 5% top-up — the Province of Ontario pays it directly to the buyer after the CRA assesses the ENHR application (Form GST190 with the RC7190-ON schedule). Combined federal and provincial relief can reach $130,000 on qualifying purchases up to $1.5 million, then phases down to a $24,000 floor at $1.85 million.

— Why Ontario buyers are suddenly asking about a second 5% rebate

Ontario buyers keep hearing scattered pieces of the same story. The lawyer mentions the ENHR. The builder mentions up to $130,000 back. A friend at work says there is also a 5% top-up you might be missing. No single conversation seems to put it all together.

The Province of Ontario announced the top-up in its 2026 Budget and the Canada Revenue Agency (CRA) confirmed the mechanics in Notice 346. The rollout landed across two governments, one federal form, and two separate payment paths — builder to buyer for one portion, province to buyer for the other.

On a $900,000 new condo in Toronto or Mississauga, the top-up alone can be up to $45,000. Unlike most of your closing costs, it arrives after you already have your keys.

$50,000Max 5% Ontario top-up on homes to $1M
$80,000Max Ontario ENHR (8% provincial portion)
$130,000Combined maximum federal + provincial relief
Mar 31 2027Agreement deadline for temporary rebate

— Quick start: pick your path

Where you land on this list determines which parts of this article matter most for you.

Primary residence up to $1M
The sweet spot. Full 8% ENHR plus full 5% top-up applies, up to $130,000 of combined relief.
Primary residence $1M–$1.85M
The rebate holds at its maximum through $1.5 million, then phases down. Read the phase-out section.
First-time home buyer
You generally claim the federal First-Time Home Buyers’ GST Rebate first. The Ontario top-up covers any residual 5%.
Investor / purpose-built rental
Separate rules extend equivalent relief to eligible rental housing, but eligibility depends on construction timing and use.

Building your own home falls under owner-built rebate rules with a different application path. For wider context, see how the Canadian residential tax landscape is shifting.

— What the 5% Ontario top-up actually is

Direct answer: The 5% Ontario top-up is a provincial payment equivalent to up to the full 5% federal portion of HST on eligible new homes. Ontario funds it and the Province pays it directly to buyers, up to a maximum of $50,000 for homes valued up to $1 million.

That definition matters because most people assume the top-up is part of the HST rebate handled by the CRA at closing. It is not. The CRA administers the Ontario Enhanced New Housing Rebate (ENHR) — the 8% provincial portion of HST, up to $80,000 — using Form GST190 and the RC7190-ON schedule. The top-up is a separate stream, funded by Ontario, delivered later, and never touched by the builder.

The term ENHR stands for Enhanced New Housing Rebate. It is the temporary Ontario program that raises the older Ontario new housing rebate cap of $24,000 to as much as $80,000 for qualifying agreements. Once you qualify for the ENHR, you also qualify for the 5% top-up.

For a plain-English refresher, see how GST/HST rules generally apply to Canadian consumers.

— Ontario ENHR and the 5% top-up: how they stack

Direct answer: The Ontario ENHR covers the 8% provincial portion of HST up to $80,000 and is credited by the builder at closing. The 5% Ontario top-up covers the 5% federal portion up to $50,000 and is paid separately by the Province of Ontario after the CRA assesses the ENHR. Combined maximum: $130,000.

Both rebates flow from the same eligibility test. Sign an Agreement of Purchase and Sale (APS) between April 1, 2026 and March 31, 2027, use the home as your primary residence, and meet the CRA’s standard conditions for the new housing rebate. How the money reaches you differs.

The 8% ENHR is credited immediately. Your builder subtracts it from your statement of adjustments at closing and claims a matching deduction on their own GST/HST return. The builder files GST190 and the RC7190-ON schedule on your behalf, with your consent to share information with Ontario included in the paperwork.

The 5% Ontario top-up works differently. Builders cannot credit the top-up at closing and cannot deduct it on their GST/HST return. Once the CRA assesses the ENHR application, Ontario receives your information through the consent on Form GST190 and issues the top-up payment directly to you.

For context on broader residential real estate tax obligations to plan around, see broader residential real estate tax obligations to plan around.

ClearWealth Accounting Advisors
Ontario ENHR vs the 5% Ontario Top-Up — maximum relief
Maximum rebate dollars available under each Ontario program on eligible new homes valued up to $1 million
Ontario ENHR
Funded by Ontario, administered by CRA. Credited by the builder on your statement of adjustments at closing.
5% Ontario Top-Up
Funded and paid by Province of Ontario. Sent directly to the buyer weeks or months after CRA assesses the ENHR.
Source: CRA Notice 346 — Ontario Enhanced New Housing Rebate (canada.ca). ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only

— Step-by-step: how the money actually reaches you

Direct answer: The rebate reaches you in two waves. The 8% ENHR arrives at closing, credited on your statement of adjustments by the builder. The 5% Ontario top-up arrives weeks or months later, paid directly by the Province of Ontario after the CRA assesses your ENHR application.

Here is how the money moves from signed agreement to your bank account.

  1. 1
    Sign your Agreement of Purchase and SaleAgreements with a builder between April 1, 2026 and March 31, 2027 qualify. Construction must generally begin by December 31, 2028 and be substantially complete by December 31, 2031.
  2. 2
    Close and receive the 8% ENHR creditAt closing, your builder credits the 8% ENHR on your statement of adjustments, reducing what you owe.
  3. 3
    Builder files GST190 and RC7190-ONYour builder files Form GST190 and the RC7190-ON schedule with the CRA. Your consent to share information with the Province of Ontario is built into the form.
  4. 4
    CRA assesses the ENHR applicationProcessing times vary and can take several weeks. There is no published fixed timeline.
  5. 5
    Ontario issues the 5% top-up paymentAfter assessment, the Province of Ontario issues the top-up payment directly to you.

Plan for the gap. Your keys arrive at closing but the top-up cheque does not. For a wider view of GST/HST filing generally, see a practical view of GST/HST filing obligations.

ClearWealth Accounting Advisors
When each rebate dollar reaches an Ontario new-home buyer
Illustrative days after closing — actual times vary with CRA processing volumes
Plan for the gap
Your keys arrive at closing, but the 5% Ontario top-up cheque does not. The Province typically pays it weeks to months after CRA assesses the ENHR.
Source: CRA — Ontario ENHR, situation involving purchases from a builder (canada.ca). Timing illustrative only — CRA does not publish a fixed processing window. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only

— Where the top-up phases out on higher-value homes

The full 5% top-up applies only up to $1 million of home value. Between $1 million and $1.5 million, the top-up holds at its $50,000 maximum. Between $1.5 million and $1.85 million, both the ENHR and the top-up phase down on a linear schedule. At $1.85 million and above, the ENHR floors at $24,000 (the legacy rebate amount) and the 5% top-up reaches zero.

Consider a worked example. A buyer signs an APS for a new $1.3 million townhouse in Mississauga in May 2026. The 13% HST works out to roughly $169,000. Because the home falls in the flat-max band, the buyer typically qualifies for the full ENHR of $80,000 plus the full $50,000 top-up — a combined $130,000 of relief, dropping the net HST cost to roughly $39,000.

At $1.7 million on the same footing, both rebates are partway through their phase-out and the combined relief is meaningfully lower. The exact figure depends on the CRA’s Ontario rebate schedule formulas.

For higher-value or investment-property considerations, see investment-property tax considerations for higher-value real estate.

ClearWealth Accounting Advisors
Combined maximum HST relief on new Ontario homes, by home value
Illustrative combined ENHR + 5% top-up relief across the phase-out scale
Flat-max band$1.0M – $1.5M: up to $130,000 combined relief
Phase-out band$1.5M – $1.85M: linear decline to $24,000 floor
Source: Government of Ontario — 2026 Budget, HST rebate details (budget.ontario.ca). Values illustrative; exact phase-out amounts follow the CRA rebate schedule. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only

— Common mistakes buyers make

Even eligible buyers routinely leave money on the table. The six mistakes below account for most of what we see.

  • →Assuming the builder credits both rebates at closing. Builders can credit the 8% ENHR but cannot credit the 5% Ontario top-up — the Province pays the top-up separately.
  • →Treating the top-up as automatic without confirming the consent on Form GST190. If the consent is not completed, the Province cannot process your payment.
  • →Missing the March 31, 2027 agreement deadline. The temporary window applies to Agreements of Purchase and Sale entered between April 1, 2026 and March 31, 2027.
  • →Applying the top-up to a resale home. Resale homes are generally exempt from HST and do not qualify for this rebate.
  • →Claiming the top-up on a home used as an investment property without meeting the primary-residence conditions or the separate purpose-built rental rules.
  • →Forgetting that the CRA must first assess the ENHR before Ontario pays the top-up. Plan cash flow for a wait of weeks or months after closing.

— Frequently asked questions

The questions below are the ones Ontario buyers ask most often. Each answer is written to be extractable on its own.

Is there really a separate 5% HST rebate on top of Ontario’s regular new housing rebate?

Yes. The 5% Ontario top-up is a distinct provincial payment equivalent to up to the full 5% federal portion of HST, layered on top of the Ontario Enhanced New Housing Rebate. Combined, the two programs can deliver up to $130,000 of relief on eligible new homes.

Can my builder credit the 5% top-up on my statement of adjustments at closing?

No. Builders can credit the 8% ENHR at closing but cannot credit the 5% top-up. The Province of Ontario pays it directly to the buyer after the CRA assesses the ENHR application filed by the builder.

When will I actually receive the 5% top-up payment?

The Province typically issues the top-up after the CRA finishes assessing the ENHR application, which generally happens weeks to months after closing depending on CRA processing times. There is no published fixed timeline, so plan cash flow for the gap.

Do I need to fill out a separate form for the 5% Ontario top-up?

There is no separate application form. The consent to share information with Ontario is built into Form GST190 and the RC7190-ON schedule, which is why the Province can pay the top-up automatically once the CRA assesses the ENHR.

If I qualify for the federal First-Time Home Buyers’ GST rebate, do I still get the Ontario top-up?

Generally, a first-time buyer claims the federal First-Time Home Buyers’ GST rebate first. Any residual 5% portion not covered by the federal rebate may then be claimed through the Ontario top-up mechanism, subject to eligibility.

Does the 5% top-up apply to homes over $1 million?

The full top-up applies up to $1 million. It remains at the $50,000 maximum between $1 million and $1.5 million, phases down between $1.5 million and $1.85 million, and reaches zero at $1.85 million and above. The ENHR follows a parallel phase-out.

What if my Agreement of Purchase and Sale was signed before April 1, 2026?

The temporary enhanced rebates generally apply to agreements entered between April 1, 2026 and March 31, 2027. Agreements outside that window typically fall under the pre-existing rebate rules with much lower caps. Consult an accountant to confirm which regime applies.

Can investors or landlords claim the 5% top-up on a purpose-built rental unit?

The Province has extended equivalent relief to eligible new purpose-built rental housing under separate rules. Eligibility depends on construction timing and intended use as long-term rental. Investors should get advice before assuming their project qualifies.

What documents should I keep to support my claim?

Keep your Agreement of Purchase and Sale, statement of adjustments, builder correspondence, filed Form GST190, and the RC7190-ON schedule. The CRA generally recommends holding tax records for six years, along with proof the home is your primary residence.

Have a new-home closing on the horizon?

ClearWealth Accounting Advisors helps Ontario buyers verify eligibility, review Form GST190 and the RC7190-ON schedule before filing, coordinate with real estate lawyers at closing, and follow up on the Province of Ontario’s 5% top-up payment.

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This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

Sources & References

  1. 1. CRA Notice 346 — Ontario Enhanced New Housing Rebate — https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/notice346/ontario-enhanced-new-housing-rebate.html
  2. 2. CRA — Ontario Temporary Enhanced New Housing Rebate: Purchases from a Builder — https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate/ontario-new-housing-rebate-situation-purchasing-from-builder.html
  3. 3. Government of Ontario — 2026 Budget: HST rebate details — https://budget.ontario.ca/2026/hst.html
  4. 4. CRA Guide RC4028 — GST/HST New Housing Rebate — https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028/gst-hst-new-housing-rebate.html
  5. 5. Excise Tax Act (Justice Laws Website) — https://laws-lois.justice.gc.ca/eng/acts/E-15/