First Time Home Buyer Tax Credit Canada

Get up to $1,500 back from the federal government when you buy your first home — here's exactly how to claim it.

What Is the First-Time Home Buyer Tax Credit?

The First-Time Home Buyer Tax Credit (HBTC) is a federal non-refundable tax credit that reduces the income tax you owe in the year you purchase a qualifying home. The credit is calculated as 15% of $100 = $1,500 in tax savings. The amount was doubled from $750 to $1,500 starting with the 2022 tax year. You claim it on Schedule 1 of your T1 personal income tax return using line 31270.

Who Is Eligible?

To claim the HBTC, you must meet all of the following conditions:

• You or your spouse/common-law partner must have acquired a qualifying home in the tax year
• Neither you nor your spouse/common-law partner owned and lived in another home in the current year or in any of the four preceding calendar years
• The home must be registered in your name, your spouse's name, or both
• You must intend to occupy the home as your principal place of residence within one year of buying it

There is one important exception for people with disabilities: if you have a disability that qualifies for the Disability Tax Credit, you can claim the HBTC even if you have owned a home before, provided you bought the new home to live in a more accessible dwelling.

What Counts as a Qualifying Home?

Almost any residential property in Canada qualifies, including:

• Single-family detached homes
• Semi-detached homes and townhouses
• Condominiums and strata units
• Mobile homes
• Co-operative housing units
• A share in a co-operative housing corporation that gives you the right to own a dwelling

The property must be located in Canada and must be registered with the appropriate land title or deeds registry under applicable provincial, territorial, or municipal law.

How Much Do You Actually Get?

The credit is non-refundable, meaning it reduces income tax you owe but does not create a refund if your tax bill is already zero. If you owe $3,000 in federal income tax and claim the $1,500 HBTC, you pay $1,500 instead. If you owe $800, you save $800 — you don't receive the remaining $700 as cash.

Tax Owed Before Credit	HBTC Value	Tax Owed After Credit
$5,000	$1,500	$3,500
$2,000	$1,500	$500
$1,200	$1,200 (capped)	$0
$500	$500 (capped)	$0

Can Partners Split the Credit?

Yes. If you purchased the home jointly with a spouse, common-law partner, or another first-time buyer, the $100 base amount can be split between you in any proportion — as long as the combined claim does not exceed $100. This is particularly useful if one partner has a lower tax bill and cannot fully use the entire $1,500 credit alone.

How to Claim It on Your Tax Return

Claiming the HBTC is straightforward:

• Complete your T1 tax return for the year of purchase
• Enter $100 on line 31270 of Schedule 1 (Home Buyer's Amount)
• The software or CRA calculation automatically applies the 15% rate to generate the $1,500 credit
• You do not need to attach any documentation — just keep your purchase agreement and closing documents on file in case CRA requests them later

Provincial Top-Ups

Several provinces offer additional credits that stack on top of the federal HBTC. Ontario's Land Transfer Tax Rebate can provide up to $4,000 back on provincial land transfer tax. Toronto buyers can receive a second rebate of up to $4,475 on municipal LTT. British Columbia exempts the first $500,000 of purchase price from Property Transfer Tax for eligible first-time buyers on homes under $835,000. Always check your province's current programs at the time of purchase.

Common Mistakes to Avoid

• Forgetting to claim it — many first-time buyers leave $1,500 on the table simply by not knowing about the credit
• Claiming when ineligible — if your partner owned a home in the last four years, neither of you qualifies
• Claiming on a rental property — the home must be your principal residence
• Missing the filing deadline — you must claim in the year of purchase