First-time buyer incentives calculator

Including the PROPOSED 2026 Federal HST Exemption on New Homes.

Breaking: Proposed Federal HST Exemption on New Homes!

The federal government has proposed removing the 5% GST portion of HST on new homes under $1 million for first-time buyers. This could save you up to $50,000 on a new home! This calculator shows your savings under BOTH the current system AND if the proposed legislation passes. Note: This is pending legislature approval.

Property Details

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The price you're paying for the home
Toronto has additional municipal land transfer tax
The proposed HST exemption applies ONLY to new construction

Your Eligibility

Available Funds

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Withdraw up to $60,000 tax-free via Home Buyers' Plan
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First Home Savings Account (max $40,000, no repayment required!)

Your Potential Savings - Two Scenarios

Current System (2026)

$0
Under existing rebate programs
PROPOSED

With New HST Exemption

$0
If federal legislation passes
Additional Savings with New Program
$0
Potential extra savings if legislation passes

All Available Incentives Breakdown

Financial Comparison

Purchase Price
$0
Current System Rebates
$0
With New HST Exemption
$0
Tax-Free Withdrawals
$0

Important: This is PROPOSED Legislation

  • Status: Bill is currently before Parliament (as of February 2026)
  • Timeline: If passed, expected implementation by Q2-Q3 2026
  • Eligibility: First-time buyers only, new homes under $1 million
  • Replaces: This would REPLACE the existing federal HST rebate (not stack on top)
  • Risk: Legislation could be amended, delayed, or not pass. Don't make purchase decisions based solely on proposed programs.

How the Proposed HST Exemption Works:

  • Current System: Pay 13% HST on new home, get partial rebate (max ~$30K)
  • Proposed System: Pay ONLY 8% PST (no 5% GST) on new homes under $1M for first-time buyers
  • Your Savings: Essentially eliminates the 5% federal portion = Up to $50,000 saved!
  • Provincial Rebate: Ontario's 8% PST rebate still applies (up to $24,000)
  • Net Effect: Could pay as little as 2% effective tax on a $400K new home (vs 13% normally)

Disclaimer

IMPORTANT: The federal HST exemption is PROPOSED legislation and has not been passed into law. The information shown for "With New HST Exemption" is hypothetical and subject to change or cancellation. Do not make real estate purchase decisions based solely on proposed programs. Current incentive amounts are based on 2026 program rules and are also subject to change. Always consult with a real estate lawyer, accountant, and mortgage professional before making financial decisions. This calculator is for educational purposes only.

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