HST and Ontario Renovations: Your 2026 Tax Guide
HST applies to virtually all renovation work in Ontario — but there are legitimate rebates and credits that can reduce the net cost significantly.
The Basics
Ontario HST = 13% (5% GST + 8% provincial component)
Applies to both labour AND materials on renovation invoices.
A $100,000 renovation = $13,000 in HST. This is real money.
The Substantial Renovation Rebate
What it is: If you renovate more than 90% of a residential property’s usable floor space, you may qualify for a GST/HST rebate of up to $16,080.
Requirements:
- Must be your primary residence
- Must alter at least 90% of the interior (very high threshold)
- Must file with CRA after project completion (Form GST191)
- Strict definition — consult a tax professional before counting on this
Input Tax Credits (Rental Properties)
If the renovated space is used for rental income, and you’re HST-registered, you may claim Input Tax Credits (ITCs) on the HST paid on renovation expenses.
- This applies to new rental suites, laneway suites, and investment properties
- Complex rules — get professional advice from a CPA
What You Can’t Claim
- Personal residential renovations (not rented, not substantially renovated) → no rebate
- HST paid to unregistered contractors (keep all HST invoices)
Practical Tips
- Always get itemized invoices showing labour vs. materials with HST line items
- Keep all receipts — required for any rebate claim
- If your contractor isn’t charging HST on a large project, that’s a red flag (possible unreported work)
- For rental suite additions, talk to a CPA before project completion
HST strategy discussions at home.renovation.reviews
LF Builders provides fully itemized HST-compliant invoices: lfbuilders.ca
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