Ontario slashes HST on new homes and pledges $210B for infrastructure
Ontario's latest budget, A Plan to Protect Ontario, has introduced major tax cuts for homebuyers and builders. The province is also committing billions to infrastructure projects over the next decade. Premier Doug Ford urged the construction sector to act quickly, calling on them to 'start building.' The 2026 budget removes the HST on new home purchases, easing a tax burden that previously exceeded 30%. High costs had been worsening the housing crisis, making it harder for buyers and slowing down construction.
Alongside tax relief, the province is investing $210 billion over 10 years in roads, transit, and water systems. Key projects include Highway 413, the Bradford Bypass, and the Ontario Line subway. These developments aim to improve transport links and support long-term growth. Ontario's construction industry has signalled readiness to back the government's plans. Yet, as of March 27, 2026, no new apartments have been completed or started under the HST relief scheme. The budget arrives as the province faces economic pressure from global challenges, reinforcing the need for sustained investment.
The tax cuts and infrastructure spending are designed to tackle housing shortages and boost competitiveness. With major projects underway and industry support secured, the government's focus now shifts to turning plans into action. The success of these measures will depend on how quickly construction ramps up in the coming months.
