What is the Ontario ENRRP rebate
The Ontario ENRRP rebate is a temporary rebate that, together with the Ontario new residential rental property (NRRP) rebate, provides landlords a combined rebate of up to 100% of the 8% provincial part of the HST on newly constructed or substantially renovated housing.
The Ontario ENRRP rebate is generally available for housing or land that will be leased as a place of residence for individuals. Generally, it applies to new housing where construction begins between April 1, 2026, and March 31, 2027, or to certain housing purchased during the same period if construction began earlier.
The Ontario ENRRP rebate may apply to the following situations:
- The purchase of new or substantially renovated housing, or the construction, substantial renovation, or addition to housing
- The sale of new housing on leased land
- The purchase of new or substantially renovated housing, or the construction, substantial renovation, or addition to housing, by a cooperative housing corporation
- Certain GST/HST exempt leases of land for residential purposes
How much is the rebate
For housing, the amount of the rebate generally depends on the type of housing and on its fair market value (FMV) .
For leased land, the amount of the rebate generally depends on the FMV of the land or site and on the corresponding provincial part of the HST that is paid as a result of a self-supply . Where there is a change in use, the amount of the rebate generally depends on the provincial part of the HST included in the basic tax content (BTC) of the land or site.
Rebate amounts for a home
The Ontario ENRRP rebate, combined with the Ontario NRRP rebate, generally provides the following amounts for:
- The lease of housing and land
- The sale of housing on leased land
- The lease of a co-op unit and land by a cooperative housing corporation
| FMV of the home | Combined rebate amount for the home |
|---|---|
| Up to $1 million | Maximum rebate of $80,000 up to 100% of the 8% provincial part of the HST |
| Above $1 million, up to $1.5 million | Maximum rebate of $80,000 |
| Above $1.5 million and below $1.85 million | Ontario ENRRP rebate is gradually reduced as the FMV increases |
| $1.85 million or more | Only the Ontario NRRP rebate of up to $24,000 may be available |
Purchaser’s rebates reduce the landlord’s rebate
The landlord’s combined rebate will generally be reduced by new housing rebates available to a purchaser of a home on leased land or of a share of the capital stock of a cooperative housing corporation as follows:
- The landlord’s Ontario NRRP rebate is reduced by the purchaser’s Ontario new housing rebate
- The landlord’s Ontario ENRRP rebate is reduced by the greater of the following purchaser rebates:
- The Ontario first-time home buyers' rebate
- The Ontario enhanced new housing rebate
Examples of rebate amounts for a home
Find out how the rebate may be calculated in the following situations.
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Lease of housing and land
An eligible landlord purchases a new single unit residential complex having a FMV of $1.25 million at the time tax became payable on the purchase.
The landlord is entitled to the maximum combined rebate, as no reduction applies until the FMV exceeds $1.5 million. The landlord is eligible for the Ontario NRRP rebate of $24,000 and the Ontario ENRRP rebate of $56,000, for a combined rebate amount of $80,000.
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Sale of home and lease of land
An eligible landlord (other than a co-op) constructs a new single unit home for $1.25 million, sells the home for $864,000 and leases the land under a long-term lease to the purchaser of the home.
The purchaser’s rebates
Although the purchaser may not receive the total sum of these rebates, they are eligible for:
- The Ontario new housing rebate ($24,000)
- The Ontario first-time home buyers’ rebate ($24,179)
- The Ontario enhanced new housing rebate ($37,171)
However, the purchaser’s total rebate is limited to the lesser of $80,000 and 7.08% of the total consideration paid for the purchase of the building, for a total rebate of $61,171.
For more information: Ontario enhanced new housing rebate
The landlord’s rebates
The landlord is eligible for:
- The Ontario NRRP rebate (maximum of $24,000)
- The Ontario ENRRP rebate (maximum of $56,000)
The landlord’s maximum combined rebate of $80,000 ($24,000 plus $56,000) is reduced by the purchaser's rebates in the following ways:
- The landlord’s maximum $24,000 Ontario NRRP rebate is reduced by $24,000 to zero as the purchaser’s new housing rebate is also $24,000
- The landlord’s maximum $56,000 Ontario ENRRP rebate is reduced by $37,171, which is the greater of the Ontario first-time homebuyers’ rebate and the Ontario enhanced new housing rebate available to the purchaser
As a result, the landlord is eligible for an Ontario ENRRP rebate of $18,829 ($56,000 minus $37,171).
Rebate amounts for land
The Ontario ENRRP rebate, combined with the Ontario NRRP rebate, generally provides the following rebate amounts for:
- Land leased for residential use
- A site in, or an addition to, a residential trailer park
| FMV of the land | Provincial part of the HST | Combined rebate amount for the land |
|---|---|---|
| Up to $330,000 | Up to $26,400 | Maximum rebate of $26,400 up to 100% of the 8% provincial part of the HST |
| Above $330,000 and less than $495,000 | Above $26,400 and less than $39,600 | Maximum rebate of $26,400 |
| $495,000 or more and less than $610,500 | $39,600 or more and less than $48,840 | Ontario ENRRP rebate is gradually reduced as the FMV or provincial part of the HST increases |
| $610,500 or more | $48,840 or more | Only the Ontario NRRP rebate of up to $7,920 may be available |
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Determine the FMV or BTC for a site in a trailer park
For the lease of a site in a residential trailer park or in an addition to a residential trailer park, the FMV or BTC of each site is determined by dividing the FMV or BTC of the trailer park (or the addition) by the total number of sites in the trailer park (or the addition).
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Example of rebate amount for land
An eligible landlord leased a site in a residential trailer park containing 40 sites, which resulted in the landlord being deemed to have made a supply of the park.
The FMV of the park is $16 million, or $400,000 per site, so the provincial part of the HST is $32,000 per site.
The landlord is entitled to the maximum combined rebate, as no reduction applies until the FMV per site exceeds $495,000. The landlord will receive the Ontario NRRP rebate of $7,920 per site and Ontario ENRRP rebate of $18,480 per site, for a combined rebate amount of $26,400 per site, or $1,056,000 for the 40 sites.
Ontario new home affordability payment (ONHAP)
A landlord who is eligible for the Ontario ENRRP rebate may also be eligible for the Ontario new home affordability payment (ONHAP), administered by the Province of Ontario. The ONHAP generally provides up to 100% of the 5% federal part of the HST paid on new or substantially renovated housing, to a maximum of $50,000, for homes valued at less than $1.85 million.
The ONHAP is reduced by any GST/HST NRRP rebate of the federal part of the HST to which the landlord is entitled.
A separate rebate application is not required to claim the ONHAP. To allow the CRA to provide the Province of Ontario with the relevant information (such as contact, banking and rebate information) to administer this payment, fill out the “Consent to share information” section on Form GST524, GST/HST New Residential Rental Property Rebate Application.