Home Buyers' Amount Tax Credit in Canada 2025 ($1,500)

The Home Buyers' Amount (HBA) is a federal non-refundable tax credit of up to $1,500 for qualifying first-time home buyers in Canada. It was increased from $750 to $1,500 in the 2022 federal budget. It's one of the simplest credits to claim — you're likely entitled to it if you bought your first home this year.

How the Home Buyers' Amount Works

The credit is calculated as follows:

• Claim $100 on line 31270 of your federal T1 return
• Multiply by 15% (the lowest federal tax rate)
• Result: $1,500 non-refundable tax credit against federal income tax

Who Can Claim the Home Buyers' Amount?

You can claim the Home Buyers' Amount if:

• You (or your spouse/common-law partner) purchased a qualifying home in the tax year
• You have not lived in another home owned by you or your spouse/common-law partner in the year of purchase or in any of the four preceding calendar years
• The home is registered in your name (and/or your spouse's/partner's name) in Canada
• You intend to occupy the home as your principal place of residence no later than one year after its acquisition

Special Rule: Persons with Disabilities

If you have a disability and are eligible for the Disability Tax Credit (DTC), you can claim the Home Buyers' Amount even if you've previously owned a home — as long as you're buying a more accessible home that better meets your needs. The same applies if you buy a home for a related person with a disability.

Splitting the Credit with a Spouse or Partner

If you purchased the home jointly with your spouse or common-law partner, you can split the claim — but the combined total cannot exceed $100 (the $1,500 credit value). For example:

• One partner claims $100 → $1,500 credit
• Or each partner claims $5,000 → $750 credit each = $1,500 total

The split can be in any proportion, as long as the total doesn't exceed $100.

What Is a Qualifying Home?

A qualifying home includes:

• Single-family houses, townhouses, and condominium units
• Mobile homes and floating homes
• Co-op housing shares that give you the right to use a housing unit
• The home must be located in Canada
• The home must be registered in your name in the land registry

How to Claim It on Your Tax Return

1. Purchase your home in the tax year
2. When filing your T1 general tax return, enter $100 on line 31270 ("Home buyers' amount")
3. Schedule 1 automatically calculates the 15% credit ($1,500)
4. This reduces your federal tax payable
5. If split with a partner, each person enters their portion on their respective line 31270

Home Buyers' Amount vs. Other Credits

The Home Buyers' Amount can be combined with other first-time buyer benefits:

• FHSA tax-deductible contributions
• RRSP Home Buyers' Plan withdrawal
• Provincial land transfer tax rebates (Ontario, BC, etc.)
• GST/HST New Housing Rebate (for new builds)

Provincial Home Buyers' Credits

Some provinces offer their own home buyer credits separate from the federal HBA. Ontario and British Columbia have historically offered credits in certain programs. Check your provincial tax return for provincial-specific lines related to home purchases.