Following the federal tax rate adjustments, significant new benefits have been introduced specifically for Ontario residents in 2026. While national changes often receive the most attention, provincial updates regarding housing and family support offer substantial financial relief for eligible taxpayers.
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Enhanced HST New Housing Rebate
A primary highlight of the 2026 Ontario Budget is a temporary enhancement of the Harmonized Sales Tax (HST) New Housing Rebate. Effective April 1, 2026, the provincial government, in partnership with the federal government, is removing the full 13% HST on qualifying newly built homes.
- Maximum relief: Eligible homebuyers can receive a combined rebate of up to $130,000.
- Price thresholds: The full rebate applies to homes valued up to $1 million. For homes between $1 million and $1.5 million, a flat reduction of $130,000 is available. Relief scales down for properties valued up to $1.85 million.
- Eligibility window: This measure applies to agreements of purchase and sale entered into with a builder between April 1, 2026, and March 31, 2027.
- First-time buyers: For those entering the market for the first time, separate relief measures have been aligned with federal rules, backdating eligibility to March 20, 2025.
Ontario Fertility Treatment Tax Credit
To assist with the costs of family expansion, the province has introduced the Ontario Fertility Treatment Tax Credit (OFTTC). This is a refundable credit, meaning it can be claimed even if the taxpayer has no tax liability for the year.
- Coverage: The credit covers 25% of eligible medical expenses related to fertility treatments, preservation, and surrogacy services provided in Canada.
- Maximum claim: Taxpayers can claim up to $20,000 in expenses for a maximum annual credit of $5,000.
- Effective date: This applies to eligible expenses paid on or after January 1, 2025. To qualify, the expenses must also be claimed under the Ontario Medical Expense Tax Credit (METC) on the same return.
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Sunset of the Canada Carbon Rebate
Following the cessation of federal pollution pricing at the pump in early 2025, the Canada Carbon Rebate (CCR) program has concluded. The final quarterly payment was issued in April 2025.
However, a critical deadline remains for those with unfiled returns. The federal government has established a strict cutoff: no CCR payments or adjustments will be processed for tax returns filed after October 30, 2026. Individuals with outstanding 2024 returns must file before this date to receive any remaining rebate entitlements.
Key filing dates for 2026
Maintaining awareness of the CRA’s schedule ensures that taxpayers avoid late-filing penalties and interest:
- February 23, 2026: Official opening for online tax filing.
- March 9, 2026: Launch of the SimpleFile Digital service for invited users with straightforward tax situations.
- April 30, 2026: General deadline for filing 2025 returns and paying any balances owed.
- June 15, 2026: Filing deadline for self-employed individuals (though any tax owing is still due by April 30).
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.