2026 Ontario Fall Statement

Ontario will parallel recent federal enhancements to the Scientific Research and Experimental Development tax incentive program by restoring capital expenditures as eligible expenditures under the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit.

Qualifying businesses could claim eligible capital costs, such as prototyping equipment and high-performance computers used in Ontario research and development activities. 

The Fall Statement provides an update on temporary relief equivalent to the full 13 per cent Harmonized Sales Tax (HST) on eligible new homes valued up to $1 million. Relief is generally available for purchases from a builder under agreements entered into between April 1, 2026, and March 31, 2027, subject to applicable eligibility requirements.

The relief comprises two components:

• Ontario enhanced housing rebates: The Ontario Enhanced New Housing Rebate and Ontario Enhanced New Residential Rental Property Rebate provide up to $80,000 in relief relating to the 8 per cent provincial portion of HST. These rebates are administered by the Canada Revenue Agency.
• Ontario New Home Affordability Payment: This payment provides top-up relief of up to $50,000 relating to the 5 per cent federal portion of HST. Ontario administers the payment, with payments expected to begin in early 2027.

Combined relief is capped at $130,000, with that maximum maintained for eligible homes valued above $1 million and up to $1.5 million. For homes valued between $1.5 million and $1.85 million, the provincial enhanced rebate decreases to $24,000 and the top-up payment decreases to nil. The top-up is reduced by any federal HST rebate entitlement.

Eligibility for the top-up requires qualifying for and receiving the applicable Ontario enhanced housing rebate, directly or through a builder credit. No separate provincial application is required. 

Ontario is proceeding with the elimination of the New Housing Rebate (NHR) and New Residential Rental Property Rebate (NRRPR), as announced in the 2026 Budget. These rebates currently refund 75 per cent of the provincial portion of HST on the first $400,000 of a new home or rental unit’s value, to a maximum of $24,000. 

The rebates will generally become unavailable for new purchases and transactions beginning on or after April 1, 2027. Their elimination will not affect eligibility or relief amounts under Ontario’s temporary new housing relief measures. 

The NHR will remain available under the conditions below:

• New homes purchased from a builder: If the agreement of purchase and sale for the home was entered into between the individual and the builder on or before March 31, 2027;
• Owner-built homes: If construction or substantial renovation of the home begins on or before March 31, 2027; and
• Shares of a co-operative housing corporation: If the agreement of purchase and sale for the share of a co-operative housing corporation was entered into between the individual and the co-operative housing corporation on or before March 31, 2027.

The NRRPR will remain available under the conditions below:

• Residential complexes purchased from a builder: If the agreement of purchase and sale for the residential complex was entered into between the person and the builder on or before March 31, 2027; and
• Landlord-built residential complexes: If construction or substantial renovation of the residential complex, or addition to a residential complex, begins on or before March 31, 2027.

For both rebates, tax must become payable no later than December 31, 2035. For a home purchased from a builder, for example, ownership must transfer by that date.

For assignment sales, both the original agreement with the builder and the assignment agreement must be entered into on or before March 31, 2027. All other eligibility requirements applicable to the transaction must also be met for the NHR or NRRPR to remain available. 

Ontario is proposing legislative amendments that support the implementation of a Beneficial Ownership Registry (BOR) for privately held business corporations in 2027.

The amendments would establish requirements for collecting, filing, accessing, disclosing and protecting beneficial ownership information. Privately held business corporations are already required to maintain information about individuals with significant control. This information is not currently filed through a centralized provincial registry.

• Proposed amendments to the Business Corporations Act would require corporations to collect additional identifying information about individuals with significant control, including citizenship and, where provided, an address for service. They would also expand reporting exemptions to include certain wholly owned subsidiaries whose parent entities are already subject to transparency and reporting requirements, with the ability to expand exemptions, as necessary, through regulation.
• Proposed amendments to the Corporations Information Act would require privately held business corporations to submit their information about their individuals with significant control to the registry, provide the public with limited access to the information, and provide full access to authorized entities such as law enforcement, and regulatory bodies. Appropriate safeguards are also proposed to protect privacy.