Regulations Amending the New Harmonized Value-Added Tax System Regulations, No. 2 (Ontario) (made on June 12, 2026, P.C. 2026-610)
1 (1) Paragraph 40(a) of the New Harmonized Value-added Tax System Regulations, No. 2Footnote 1 is replaced by the following:
Return to footnote 1SOR/2010-151
(a) subject to paragraphs (b) to (c), the references in sections 41, 43, 45 and 46 and the references in section 256.21 of the Act to an individual are to be read as references to all of those individuals as a group;
(2) Section 40 of the Regulations is amended by adding the following after paragraph (b):
(b.1) in each of subsections 41(2.2), 43(1.2), 45(2.2) and 46(2.2), the first reference to an individual is to be read as a reference to one or more of those individuals and any subsequent references to an individual are to be read as references to all of those individuals as a group;
(3) Section 40 of the Regulations is amended by striking out "and" at the end of paragraph (d) and by adding the following after that paragraph:
(d.1) only one of those individuals may apply for a rebate under subsection 256.21(1) of the Act in respect of the residential complex or share, the amount of which is determined under subsection 41(2.01), 43(1.01), 45(2.01) or 46(2.01); and
2 (1) Section 41 of the Regulations is amended by adding the following after subsection (2):
Marginal note:Ontario additional rebate before April 2027
(2.01) For the purposes of subsection 256.21(1) of the Act, if
(a) an individual is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), in respect of a taxable supply by way of sale of a residential complex made by a builder of the residential complex to the individual,
(b) the agreement of purchase and sale referred to in paragraph 254(2)(b) of the Act of the residential complex is entered into between the builder and the individual after March 2026 and before April 2027,
(c) the total (in this subsection referred to as the "total consideration") of all amounts, each of which is the consideration payable for the supply to the individual of the residential complex or for any other taxable supply to the individual of an interest in the residential complex, is less than $1,850,000,
(d) the construction or substantial renovation of the residential complex begins before 2029 and is substantially completed before 2032, and
(e) tax becomes payable in respect of the supply to the individual of the residential complex before 2033,
the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act — in addition to the amounts of any rebates payable under subsection 256.21(1) of the Act, the amounts of which are determined under subsection (2) or (2.1), that the individual is entitled to claim in respect of the residential complex — is equal to
(f) if the total consideration is not more than $1,500,000, the amount determined by the formula
A − B
where
- A
- is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex, and
- B
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex, and
(g) if the total consideration is more than $1,500,000 but less than $1,850,000, the amount determined by the formula
(C − D) × ($1,850,000 − E) ÷ $350,000
where
- C
- is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex,
- D
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex, and
- E
- is the total consideration.
(2) Section 41 of the Regulations is amended by adding the following after subsection (2.1):
Marginal note:Maximum amount of rebates — Ontario
(2.2) The total of all amounts that the Minister pays to an individual in respect of a residential complex — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the residential complex, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex.
(3) Subsections 41(4) and (5) of the Regulations are replaced by the following:
Marginal note:Application for rebate
(4) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under any of subsections (2) to (2.1), must be filed within two years after the day on which ownership of the residential complex is transferred to the individual.
Marginal note:Restriction
(5) The Minister shall pay a rebate in respect of a residential complex to an individual under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections (2) to (2.1), only if the individual does not make an application for a rebate in respect of the residential complex under subsection 256(2) of the Act and does not make an application for a rebate in respect of the residential complex under subsection 256(2.1) of the Act.
(4) The portion of subsection 41(6) of the Regulations before paragraph (a) is replaced by the following:
Marginal note:Application to builder
(6) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a residential complex, the amount of which is determined under any of subsections (2) to (2.1),
(5) Paragraph 41(6)(b) of the Regulations is replaced by the following:
(b) an individual who is a prescribed person under any of subsections (2) to (2.1), as the case may be, in respect of the complex is an individual of a prescribed class; and
(6) Subparagraph 41(6)(c)(ii) of the Regulations is replaced by the following:
(ii) the builder agrees to pay to, or to credit to or in favour of, the individual any rebate under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections (2) to (2.1), as the case may be, that is payable to the individual in respect of the complex,
3 (1) Subsection 43(1) of the Regulations is replaced by the following:
Marginal note:Rebate in Ontario
43 (1) If an individual is entitled to claim a rebate under subsection 254.1(2) of the Act in respect of a building or part of it in which a residential unit forming part of a residential complex in Ontario is situated, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the individual under the agreement for the supply of the complex to the individual, were less than $508,500, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of the rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and 5.31% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the complex.
Marginal note:Ontario additional rebate before April 2027
(1.01) For the purposes of subsection 256.21(1) of the Act, if
(a) an individual is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (1), in respect of a residential complex,
(b) the agreement referred to in paragraph 254.1(2)(a) of the Act in respect of the residential complex is entered into between the individual and a builder of the residential complex after March 2026 and before April 2027,
(c) the fair market value of the residential complex, at the time at which possession of the residential complex is given to the individual under the agreement, is less than $2,090,500,
(d) the construction or substantial renovation of the residential complex begins before 2029 and is substantially completed before 2032, and
(e) the time referred to in paragraph (c) is before 2033,
the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act — in addition to the amounts of any rebates payable under subsection 256.21(1) of the Act, the amounts of which are determined under subsection (1) or (1.1), that the individual is entitled to claim in respect of the residential complex — is equal to
(f) if the fair market value referred to in paragraph (c) is not more than $1,695,000, the amount determined by the formula
A − B
where
- A
- is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the residential complex, and
- B
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (1), that the individual is entitled to claim in respect of the residential complex, and
(g) if the fair market value referred to in paragraph (c) is more than $1,695,000 but less than $2,090,500, the amount determined by the formula
(C − D) × ($2,090,500 − E) ÷ $395,500
where
- C
- is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the residential complex,
- D
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (1), that the individual is entitled to claim in respect of the residential complex, and
- E
- is the fair market value.
(2) Section 43 of the Regulations is amended by adding the following after subsection (1.1):
Marginal note:Maximum amount of rebates — Ontario
(1.2) The total of all amounts that the Minister pays to an individual in respect of a residential complex — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the residential complex, the amount of which is determined under subsection (1), (1.01) or (1.1) — shall not exceed the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the residential complex.
(3) Subsection 43(3) of the Regulations is replaced by the following:
Marginal note:Application for rebate
(3) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under any of subsections (1) to (1.1), must be filed within two years after the day on which possession of the residential complex is transferred to the individual.
(4) The portion of subsection 43(4) of the Regulations before paragraph (a) is replaced by the following:
Marginal note:Application to builder
(4) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a residential complex, the amount of which is determined under any of subsections (1) to (1.1),
(5) Paragraph 43(4)(b) of the Regulations is replaced by the following:
(b) an individual who is a prescribed person under any of subsections (1) to (1.1), as the case may be, in relation to the complex is an individual of a prescribed class; and
(6) Subparagraph 43(4)(c)(ii) of the Regulations is replaced by the following:
(ii) the builder agrees to pay to, or to credit to or in favour of, the individual any rebate under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections (1) to (1.1), as the case may be, that is payable to the individual in respect of the complex, and
4 (1) Section 45 of the Regulations is amended by adding the following after subsection (2):
Marginal note:Ontario additional rebate before April 2027
(2.01) For the purposes of subsection 256.21(1) of the Act, if
(a) an individual is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), in respect of a share of the capital stock of a cooperative housing corporation that the individual has acquired for the purpose of using a residential unit in a residential complex of the cooperative housing corporation as the primary place of residence of the individual or a relation of the individual,
(b) the agreement of purchase and sale referred to in paragraph 255(2)(c) of the Act of the share is entered into between the cooperative housing corporation and the individual after March 2026 and before April 2027,
(c) the total (in this subsection referred to as the "total consideration") of all amounts, each of which is the consideration payable for the supply to the individual of the share or an interest in the cooperative housing corporation, residential complex or residential unit, is less than $2,090,500,
(d) the construction or substantial renovation of the residential complex begins before 2029 and is substantially completed before 2032, and
(e) ownership of the share is transferred to the individual before 2033,
the individual is a prescribed person and the amount of a rebate in respect of the share under subsection 256.21(1) of the Act — in addition to the amounts of any rebates payable under subsection 256.21(1) of the Act, the amounts of which are determined under subsection (2) or (2.1), that the individual is entitled to claim in respect of the share — is equal to
(f) if the total consideration is not more than $1,695,000, the amount determined by the formula
A − B
where
- A
- is the lesser of $80,000 and 7.08% of the total consideration, and
- B
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the share, and
(g) if the total consideration is more than $1,695,000 but less than $2,090,500, the amount determined by the formula
(C − D) × ($2,090,500 − E) ÷ $395,500
where
- C
- is the lesser of $80,000 and 7.08% of the total consideration,
- D
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the share, and
- E
- is the total consideration.
(2) Section 45 of the Regulations is amended by adding the following after subsection (2.1):
Marginal note:Maximum amount of rebates — Ontario
(2.2) The total of all amounts that the Minister pays to an individual in respect of a share — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the share, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph (2)(c)) in respect of the share.
(3) Subsection 45(4) of the Regulations is replaced by the following:
Marginal note:Application for rebate
(4) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under any of subsections (2) to (2.1), must be filed within two years after the day on which ownership of the share is transferred to the individual.
5 (1) Section 46 of the Regulations is amended by adding the following after subsection (2):
Marginal note:Ontario additional rebate before April 2027
(2.01) For the purposes of subsection 256.21(1) of the Act, if
(a) an individual is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), in respect of a residential complex,
(b) the construction or substantial renovation of the residential complex begins after March 2026 and before April 2027 and is substantially completed before 2030, and
(c) the fair market value of the residential complex, at the time the construction or substantial renovation of the residential complex is substantially completed, is less than $1,850,000,
the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act — in addition to the amounts of any rebates payable under subsection 256.21(1) of the Act, the amounts of which are determined under subsection (2) or (2.1), that the individual is entitled to claim in respect of the residential complex — is equal to
(A − B) × ($1,850,000 − C) ÷ $350,000
where
- A
- is the lesser of $80,000 and the total tax in respect of the province — being the total of the tax payable under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 of the Act by the individual in respect of the supply by way of sale to the individual of the land that forms part of the residential complex or an interest in the land or in respect of the supply to, importation by, or bringing into Ontario by, the individual of any improvement to the land or, in the case of a mobile home or floating home, of the residential complex — paid before the time at which
(i) if the fair market value referred to in paragraph (c) is less than $450,000, an application for the rebate under subsection 256(2) of the Act in respect of the residential complex is filed with the Minister in accordance with subsection 256(3) of the Act, and
(ii) in any other case, an application for a rebate under subsection 256.21(1) of the Act in respect of the residential complex is filed with the Minister in accordance with subsection 256.21(2) of the Act,
- B
- is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex, and
- C
- is the greater of $1,500,000 and the fair market value referred to in paragraph (c).
(2) Section 46 of the Regulations is amended by adding the following after subsection (2.1):
Marginal note:Maximum amount of rebates — Ontario
(2.2) The total of all amounts that the Minister pays to an individual in respect of a residential complex — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the residential complex, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and the total tax in respect of the province (as determined for the purpose of paragraph (2)(b)) paid before the time at which
(a) if the fair market value of the residential complex, at the time the construction or substantial renovation of the residential complex is substantially completed, is less than $450,000, an application for the rebate under subsection 256(2) of the Act in respect of the residential complex is filed with the Minister in accordance with subsection 256(3) of the Act; and
(b) in any other case, an application for a rebate under subsection 256.21(1) of the Act in respect of the residential complex is filed with the Minister in accordance with subsection 256.21(2) of the Act.
(3) Subsection 46(4) of the Regulations is replaced by the following:
Marginal note:Homes occupied before substantial completion
(4) If an individual acquires an improvement in respect of a residential complex and tax in respect of the improvement becomes payable by the individual more than two years after the day on which the residential complex is first occupied as described in subparagraph 256(2)(d)(i) of the Act, that tax shall not be included in determining, for the residential complex, the total tax in respect of the province for the purposes of subsections (2) to (2.1).
(4) Paragraph 46(5)(b) of the Regulations is replaced by the following:
(b) the particular individual does not file with the Minister or submit to the supplier an application for a rebate in respect of the home under section 254 or 254.1 of the Act or for a rebate in respect of the home under section 256.21 of the Act the amount of which is determined under subsection 41(2), (2.01) or (2.1) or 43(1), (1.01) or (1.1);
(5) The portion of subsection 46(6) of the Regulations before paragraph (a) is replaced by the following:
Marginal note:Application for rebate
(6) For the purposes of subsection 256.21(2) of the Act, an application for a rebate in relation to a residential complex, the amount of which is determined under any of subsections (2) to (2.1), must be filed on or before
(6) Paragraph 46(6)(c) of the Regulations is replaced by the following:
(c) if paragraph (b) does not apply, any day after the due date that is set out in a written request filed with the Minister by the individual referred to in any of subsections (2) to (2.1), as the case may be, and that is satisfactory to the Minister.
6 (1) Subsections 47(1) and (2) of the Regulations are replaced by the following:
Marginal note:Definitions
47 (1) The following definitions apply in this section.
- percentage of total floor space
percentage of total floor space has the same meaning as in subsection 256.2(1) of the Act. (pourcentage de superficie totale)
- provincial portion of basic tax content
provincial portion of basic tax content, at a particular time, of property of a person means the amount that would be the basic tax content of the property at that time if no amount of tax under any of subsection 165(1) and sections 212 and 218 of the Act were included in determining that basic tax content. (fraction provinciale de teneur en taxe)
- qualifying residential unit
qualifying residential unit has the same meaning as in subsection 256.2(1) of the Act. (habitation admissible)
- relation
relation has the same meaning as in subsection 256.2(1) of the Act. (proche)
- unit market value
unit market value, at a particular time, of a residential unit included in a residential complex or in an addition to a residential complex means
(a) if the residential unit is a single unit residential complex or a residential condominium unit, the fair market value of the residential unit at the particular time; and
(b) in any other case, the amount determined by the formula
A × B
where
- A
- is the residential unit's percentage of total floor space, and
- B
- is the fair market value of the residential complex or addition, as the case may be, at the particular time. (valeur marchande unitaire)
(2) Section 47 of the Regulations is amended by adding the following after subsection (3):
Marginal note:Construction begins before April 2026 — Ontario
(3.1) The rules in subsection (3.3) apply if
(a) a particular person is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (3), in respect of a residential complex or an interest in a residential complex;
(b) the construction or substantial renovation of the residential complex begins before April 2026 and is substantially completed before 2030;
(c) the particular person is the recipient of a taxable supply by way of sale from another person of the residential complex or interest, as the case may be, and is not a builder of the residential complex;
(d) the residential complex is a single unit residential complex or a residential condominium unit;
(e) the agreement of purchase and sale of the residential complex or interest, as the case may be, is entered into between the particular person and the other person after March 2026 and before April 2027; and
(f) the specified time referred to in subsection (3) is before 2033.
Marginal note:Construction begins after March 2026 — Ontario
(3.2) The rules in subsection (3.3) apply if
(a) a particular person is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (3), in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex;
(b) the construction or substantial renovation of the residential complex or addition begins after March 2026 but before April 2027 and is substantially completed before 2030; and
(c) the specified time referred to in subsection (3) is before 2033.
Marginal note:Additional land and building rebate — Ontario
(3.3) Subject to subsections (13) to (15), if subsection (3.1) or (3.2) applies in respect of a particular person and a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, for the purposes of subsection 256.21(1) of the Act, the particular person is a prescribed person and the amount of the rebate in respect of the residential complex, interest or addition, as the case may be, under subsection 256.21(1) of the Act — in addition to the amount of the rebate payable under subsection 256.21(1) of the Act, the amount of which is determined under subsection (3), that the particular person is entitled to claim in respect of the residential complex, interest or addition — is equal to the total of all amounts, each of which is an amount, in respect of a residential unit that forms part of the residential complex or addition and that is a qualifying residential unit of the particular person at the specified time referred to in subsection (3), equal to
(a) if the unit market value of the residential unit at the specified time is not more than $1,500,000, the amount determined by the formula
A − B
where
- A
- is the lesser of $80,000 and the amount determined by the formula
A1 × A2
where
- A1
- is the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) of the residential complex or interest or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) of the residential complex or addition, as the case may be, and
- A2
- is
(i) if the residential unit is a single unit residential complex or a residential condominium unit, 1, and
(ii) in any other case, the residential unit's percentage of total floor space, and
- B
- is the lesser of $24,000 and the amount determined for the residential unit by the formula in subsection (3);
(b) if the unit market value of the residential unit at the specified time is more than $1,500,000 but less than $1,850,000, the amount determined by the formula
(C − D) × ($1,850,000 − E) ÷ $350,000
where
- C
- is the lesser of $80,000 and the amount determined by the formula
C1 × C2
where
- C1
- is the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) of the residential complex or interest or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) of the residential complex or addition, as the case may be, and
- C2
- is
(i) if the residential unit is a single unit residential complex or a residential condominium unit, 1, and
(ii) in any other case, the residential unit's percentage of total floor space,
- D
- is the lesser of $24,000 and the amount determined for the residential unit by the formula in subsection (3), and
- E
- is the unit market value of the residential unit at the specified time; and
(c) in any other case, zero.
(3) The description of B in subsection 47(5) of the Regulations is replaced by the following:
- B
- is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(1), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the complex or unit.
(4) Section 47 of the Regulations is amended by adding the following after subsection (5):
Marginal note:Sale of building and lease of land — additional Ontario rebate
(5.1) Subject to subsections (13) and (14), if a particular person is entitled to claim a particular rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (5), in respect of a residential complex or an addition to a multiple unit residential complex, if the construction or substantial renovation of the residential complex or addition begins after March 2026 but before April 2027 and is substantially completed before 2030 and if the specified time referred to in subsection (5) is before 2033, then, for the purposes of subsection 256.21(1) of the Act, the particular person is a prescribed person and the amount of the rebate in respect of the residential complex or addition under subsection 256.21(1) of the Act, in addition to the amount of the particular rebate, is equal to the total of all amounts, each of which is an amount, in respect of a residential unit that forms part of the residential complex or addition and that is, in the case of a multiple unit residential complex or an addition to a multiple unit residential complex, a qualifying residential unit of the person at the specified time, determined by the formula
A − B
where
- A
- is
(a) if the unit market value of the residential unit at the specified time is not more than $1,500,000, the amount determined by the formula
C − D
where
- C
- is the lesser of $80,000 and the amount determined by the formula
C1 × C2
where
- C1
- is the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the particular person at the specified time, and
- C2
- is
(i) if the residential unit is a single unit residential complex or a residential condominium unit, 1, and
(ii) in any other case, the residential unit's percentage of total floor space, and
- D
- is the amount determined for A in subsection (5) in respect of the residential unit,
(b) if the unit market value of the residential unit at the specified time is greater than $1,500,000 but less than $1,850,000, the amount determined by the formula
(E − F) × ($1,850,000 − G) ÷ $350,000
where
- E
- is the lesser of $80,000 and the amount determined by the formula
E1 × E2
where
- E1
- is the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the particular person at the specified time, and
- E2
- is
(i) if the residential unit is a single unit residential complex or a residential condominium unit, 1, and
(ii) in any other case, the residential unit's percentage of total floor space, and
- F
- is the amount determined for A in subsection (5) in respect of the residential unit, and
- G
- is the unit market value of the residential unit at the specified time, and
(c) in any other case, zero; and
- B
- is the greater of
(a) the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(1.01), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the residential complex or residential unit, and
(b) the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(1.1), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the residential complex or residential unit.
(5) The description of B in subsection 47(7) of the Regulations is replaced by the following:
- B
- is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(2), that the recipient of the exempt supply of the unit referred to in paragraph 256.2(5)(c) of the Act is entitled to claim in respect of the unit.
(6) Section 47 of the Regulations is amended by adding the following after subsection (7):
Marginal note:Construction begins before April 2026 — Ontario
(7.1) The rules in subsection (7.3) apply if
(a) a cooperative housing corporation is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (7), in respect of a residential unit included in a residential complex;
(b) the construction or substantial renovation of the residential complex begins before April 2026 and is substantially completed before 2030;
(c) the cooperative housing corporation is the recipient of a taxable supply by way of sale from another person of the residential complex or of an interest in the residential complex and is not a builder of the residential complex;
(d) the residential complex is a single unit residential complex;
(e) the agreement of purchase and sale of the residential complex or interest, as the case may be, is entered into between the cooperative housing corporation and the other person after March 2026 and before April 2027;
(f) the specified time — being the time at which tax becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) — is before 2033; and
(g) the unit market value of the residential unit at the specified time is less than $1,850,000.
Marginal note:Construction begins after March 2026 — Ontario
(7.2) The rules in subsection (7.3) apply if
(a) a cooperative housing corporation is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (7), in respect of a residential unit included in a residential complex or in an addition to a multiple unit residential complex;
(b) the construction or substantial renovation of the residential complex or addition begins after March 2026 but before April 2027 and is substantially completed before 2030;
(c) the specified time — being the time at which tax becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) or at which tax in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) is deemed to have been paid by the cooperative housing corporation — is before 2033; and
(d) the unit market value of the residential unit at the specified time is less than $1,850,000.
Marginal note:Cooperative housing corporation — additional Ontario rebate
(7.3) Subject to subsections (13) and (14), if subsection (7.1) or (7.2) applies in respect of a cooperative housing corporation and a residential unit, for the purposes of subsection 256.21(1) of the Act, the cooperative housing corporation is a prescribed person in respect of the residential unit and the amount of the rebate in respect of the residential unit under subsection 256.21(1) of the Act — in addition to the amount of the particular rebate payable under subsection 256.21(1) of the Act, the amount of which is determined under subsection (7), that the cooperative housing corporation is entitled to claim in respect of the residential unit — is equal to the amount determined by the formula
A − B
where
- A
- is
(a) if the unit market value of the residential unit at the specified time referred to in paragraph (7.1)(f) or (7.2)(c), as applicable, is not more than $1,500,000, the amount determined by the formula
C − D
where
- C
- is the lesser of $80,000 and the amount determined by the formula
C1 × C2
where
- C1
- is the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) or that is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act), and
- C2
- is
(i) if the residential unit is a single unit residential complex, 1, and
(ii) in any other case, the residential unit's percentage of total floor space, and
- D
- is the amount of the particular rebate, and
(b) if the unit market value of the residential unit at the specified time is greater than $1,500,000 but less than $1,850,000, the amount determined by the formula
(E − F) × ($1,850,000 − G) ÷ $350,000
where
- E
- is the lesser of $80,000 and the amount determined by the formula
E1 × E2
where
- E1
- is the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) or that is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act), and
- E2
- is
(i) if the residential unit is a single unit residential complex, 1, and
(ii) in any other case, the residential unit's percentage of total floor space,
- F
- is the amount of the particular rebate, and
- G
- is the unit market value of the residential unit at the specified time; and
- B
- is the greater of
(a) the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(2.01), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(5)(c) of the Act is entitled to claim in respect of the residential unit, and
(b) the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(2.1), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(5)(c) of the Act is entitled to claim in respect of the residential unit.
(7) The portion of subsection 47(9) of the Regulations before subparagraph (a)(i) is replaced by the following:
Marginal note:Land leased for residential purposes — Ontario
(9) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(6) of the Act in respect of an exempt supply of land situated in Ontario, or the person would be so entitled if the amount determined for B in that subsection were less than $112,500, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under that subsection is equal to
(a) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the lesser of $7,920 multiplied by the total number of sites in the park or addition, as the case may be, and
(8) Section 47 of the Regulations is amended by adding the following after subsection (9):
Marginal note:Leased land — additional Ontario rebate
(9.1) Subject to subsections (13) and (14), if a person is entitled to claim a particular rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (9), in respect of an exempt supply of land situated in Ontario and if the particular time referred to in subparagraph 256.2(6)(a)(ii) of the Act is after March 2026 and before April 2027, then, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under subsection 256.21(1) of the Act, in addition to the amount of the particular rebate, is equal to
(a) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the lesser of $18,480 multiplied by the total number of sites in the park or addition, as the case may be, and whichever of the amounts in subparagraph (i) or (ii) is applicable:
(i) if the person is deemed to have paid tax calculated on the fair market value of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act,
(A) if the per site tax — being the amount that is equal to the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply divided by the total number of sites in the park or addition — is less than or equal to $26,400, the amount determined by the formula
A − B
where
- A
- is the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply, and
- B
- is the amount of the particular rebate,
(B) if the per site tax is greater than $26,400 but less than $39,600, the amount determined by the formula
C − D
where
- C
- is $26,400 multiplied by the total number of sites in the park or addition, and
- D
- is the amount of the particular rebate, and
(C) in any other case, the amount determined by the formula
(E − F) × (G − H) ÷ I
where
- E
- is $26,400 multiplied by the total number of sites in the park or addition,
- F
- is the amount of the particular rebate,
- G
- is $48,840 multiplied by the total number of sites in the park or addition,
- H
- is the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply, and
- I
- is $9,240 multiplied by the total number of sites in the park or addition, and
(ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act,
(A) if the per site tax content — being the provincial portion of basic tax content of the park or addition at that time divided by the total number of sites in the park or addition — is less than or equal to $26,400, the amount determined by the formula
J − K
where
- J
- is the provincial portion of basic tax content of the park or addition at that time, and
- K
- is the amount of the particular rebate,
(B) if the per site tax content is greater than $26,400 but less than $39,600, the amount determined by the formula
L − M
where
- L
- is $26,400 multiplied by the total number of sites in the park or addition, and
- M
- is the amount of the particular rebate, and
(C) in any other case, the amount determined by the formula
(N − O) × (P − Q) ÷ R
where
- N
- is $26,400 multiplied by the total number of sites in the park or addition,
- O
- is the amount of the particular rebate,
- P
- is $48,840 multiplied by the total number of sites in the park or addition,
- Q
- is the provincial portion of basic tax content of the park or addition at that time, and
- R
- is $9,240 multiplied by the total number of sites in the park or addition; and
(b) in any other case, the lesser of $18,480 and whichever of the amounts in subparagraph (i) or (ii) is applicable:
(i) if the person is deemed to have paid tax calculated on the fair market value of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act,
(A) if the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply is less than or equal to $26,400, the amount determined by the formula
S − T
where
- S
- is the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply, and
- T
- is the amount of the particular rebate,
(B) if the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply is greater than $26,400 but less than $39,600, the difference between $26,400 and the amount of the particular rebate, and
(C) in any other case, the amount determined by the formula
($26,400 − U) × ($48,840 − V) ÷ $9,240
where
- U
- is the amount of the particular rebate, and
- V
- is the amount of tax under subsection 165(2) of the Act that is deemed to have been paid in respect of the taxable supply, and
(ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act,
(A) if the provincial portion of basic tax content of the land at that time is less than or equal to $26,400, the amount determined by the formula
W − X
where
- W
- is the provincial portion of basic tax content of the land at that time, and
- X
- is the amount of the particular rebate,
(B) if the provincial portion of basic tax content of the land at that time is greater than $26,400 but less than $39,600, the difference between $26,400 and the amount of the particular rebate, and
(C) in any other case, the amount determined by the formula
($26,400 − Y) × ($48,840 − Z) ÷ $9,240
where
- Y
- is the amount of the particular rebate, and
- Z
- is the provincial portion of basic tax content of the land at that time.
(9) Paragraphs 47(11)(b) and (c) of the Regulations are replaced by the following:
(b) in the case of a rebate the amount of which is determined under any of subsections (7) to (8), the end of the month in which the person makes the exempt supply referred to in that subsection; and
(c) in the case of a rebate the amount of which is determined under any of subsections (9) to (10), the end of the month in which the person is deemed to have paid the tax referred to in that subsection.
(10) Subsection 47(13) of the Regulations is replaced by the following:
Marginal note:Special rules
(13) For the purposes of this section, subsections 191(9) and 256.2(8) of the Act apply with any necessary modifications.
(11) Subsection 47(15) of the Regulations is replaced by the following:
Marginal note:Exception — prescribed person
(15) If, in the absence of this subsection, a person would be, under subsection (3) or (3.3), a prescribed person for the purposes of subsection 256.21(1) of the Act in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 of the Act to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person is deemed never to have been a prescribed person under subsection (3) or (3.3), as the case may be, for the purposes of subsection 256.21(1) of the Act in respect of the qualifying residential unit.
7 The Regulations are amended by adding the following after section 47:
DIVISION 7Additional Rules
Marginal note:Definition of agreement of sale
47.01 (1) For the purposes of this section, agreement of sale, in respect of a residential complex, between a particular person or a group of persons and another person, means an agreement under which the other person supplies by way of sale to the particular person or to the group, as the case may be, the following:
(a) the residential complex;
(b) an interest in the residential complex;
(c) a building or part of a building in which a residential unit forming part of the residential complex is located; or
(d) if the other person is a cooperative housing corporation, a share of the capital stock of the other person, the holder of which is entitled to possession of a residential unit located in the residential complex.
Marginal note:Non-arm's length — groups of persons
(2) For the purposes of this section,
(a) a group of persons and a particular person are not dealing with each other at arm's length if
(i) the particular person is a member of the group, or
(ii) the particular person is not dealing at arm's length with one or more members of the group; and
(b) a particular group of persons and another group of persons are not dealing with each other at arm's length if
(i) one or more persons are members of both groups, or
(ii) one or more members of the particular group are not dealing at arm's length with one or more members of the other group.
Marginal note:Ontario additional rebates — variation, alteration or assignment
(3) For the purposes of subsections (4) and (5) and 41(2.01), 43(1.01), 45(2.01) and 47(3.1) and (7.1), if an agreement that is an agreement of sale in respect of a residential complex between a person or a group of persons and another person is entered into before April 2026 and the agreement is later varied, altered or assigned such that it is considered to be entered into after March 2026, the agreement is deemed to have been entered into before April 2026.
Marginal note:Ontario additional rebates — new agreement
(4) For the purposes of subsections (3) and (5) and 41(2.01), 43(1.01), 45(2.01) and 47(3.1) and (7.1), if
(a) before April 2026, a person (in this subsection referred to as the "purchaser") and another person (in this subsection referred to as the "vendor") enter into an agreement that is an agreement of sale, in respect of a particular residential complex, between the purchaser and the vendor,
(b) after March 2026,
(i) the purchaser and the vendor, either directly or indirectly, terminate the agreement, and
(ii) another agreement is entered into that is an agreement of sale, in respect of the particular residential complex or another residential complex, between the purchaser, a person (in this subsection referred to as the "other purchaser") that is not dealing at arm's length with the purchaser or a group of persons that is not dealing at arm's length with the purchaser and one of the following persons:
(A) the vendor,
(B) another person that is not dealing at arm's length with the vendor, or
(C) if the vendor is a builder of the particular residential complex, another person that is a builder of the particular residential complex, and
(c) the entering into of the other agreement may not reasonably be considered for the purchaser, the other purchaser or the group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections 41(2.01), 43(1.01), 45(2.01) and 47(3.3) and (7.3),
the other agreement is deemed to have been entered into before April 2026.
Marginal note:Ontario additional rebates — new agreement
(5) For the purposes of subsections (3) and (4) and 41(2.01), 43(1.01), 45(2.01) and 47(3.1) and (7.1), if
(a) before April 2026, a group of persons (in this subsection referred to as the "purchaser group") and another person (in this subsection referred to as the "vendor") enter into an agreement that is an agreement of sale, in respect of a particular residential complex, between the purchaser group and the vendor,
(b) after March 2026,
(i) the purchaser group and the vendor, either directly or indirectly, terminate the agreement, and
(ii) another agreement is entered into that is an agreement of sale, in respect of the particular residential complex or another residential complex, between the purchaser group, a person (in this subsection referred to as the "other purchaser") that is not dealing at arm's length with the purchaser group or another group of persons that is not dealing at arm's length with the purchaser group and one of the following persons:
(A) the vendor,
(B) another person that is not dealing at arm's length with the vendor, or
(C) if the vendor is a builder of the particular residential complex, another person that is a builder of the particular residential complex, and
(c) the entering into of the other agreement may not reasonably be considered for the purchaser group, the other purchaser or the other group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections 41(2.01), 43(1.01) and 45(2.01) and 47(3.3) and (7.3),
the other agreement is deemed to have been entered into before April 2026.
Coming into Force
8 These Regulations are deemed to have come into force on April 1, 2026.