Canada offers several tax credits that can meaningfully offset the cost of home renovations. Unlike grants (which give you money upfront) or loans, tax credits reduce the amount of income tax you owe when you file your return — or increase your refund. In 2025, two major federal credits are available, along with several provincial programs.
This guide covers every renovation-related tax credit available to Canadian homeowners in 2025, who qualifies, and how to claim them.
Federal Home Renovation Tax Credits (2025)
1. Home Accessibility Tax Credit (HATC)
How it works: 15% non-refundable federal tax credit on up to $20,000 in eligible expenses per year.
Who qualifies: Individuals 65 or older, or people who qualify for the Disability Tax Credit — or renovations done for those individuals.
Eligible renovations: Wheelchair ramps, grab bars, walk-in tubs, wider doorways, stair lifts, non-slip flooring, handrails, and other modifications that improve accessibility or reduce injury risk.
2. Multigenerational Home Renovation Tax Credit (MHRTC)
How it works: 15% refundable federal tax credit on up to $50,000 in eligible expenses for creating a secondary dwelling unit.
Who qualifies: Homeowners adding a self-contained secondary suite for an eligible person — a senior (65+) or a person with a disability who is a qualifying relation (parent, grandparent, sibling, child, etc.).
The suite must be: Self-contained (own entrance, kitchen, bathroom), and the eligible person must move in within 12 months of the renovation being complete.
Tax Credit Calculator
Estimate Your Renovation Tax Credit
Provincial Home Renovation Tax Credits (2025)
Ontario
Ontario offers the Ontario Seniors' Home Safety Tax Credit — a 25% refundable credit on up to $100 in eligible expenses ($2,500 maximum). This can be claimed in addition to the federal HATC, effectively giving Ontario seniors a combined 40% credit on accessibility renovations up to $100.
Ontario renovation tax credits guide →
British Columbia
BC does not currently offer a broad home renovation tax credit, but BC seniors may access the Seniors' Home Renovation Tax Credit through federal programs. BC's energy efficiency incentives are primarily delivered through CleanBC rebate programs rather than tax credits.
Quebec
Quebec's LogiRenov program has offered refundable tax credits for home renovation work in the past. Check Revenu Québec's current programs — Quebec residents often have access to provincial credits not available in other provinces.
New Brunswick, Nova Scotia, PEI
Atlantic provinces periodically offer seniors' renovation credits. Check your provincial revenue agency for current year programs.
Summary: What You Can Claim in 2025
| Credit | Rate | Max Expenses | Max Credit | Refundable? |
|---|---|---|---|---|
| HATC (Federal) | 15% | $20,000/yr | $3,000 | No |
| MHRTC (Federal) | 15% | $50,000 lifetime | $7,500 | Yes |
| ON Seniors' Safety | 25% | $100/yr | $2,500 | Yes |
Stacking example: An Ontario senior (65+) adds accessibility features (grab bars, ramp) costing $100 and creates a secondary suite for their parent ($48,000). They can claim: HATC ($1,500) + Ontario Seniors' Safety ($2,500) + MHRTC ($7,200) = $11,200 in tax credits.
How to Claim Renovation Tax Credits
- Keep all receipts and invoices from contractors and suppliers. CRA may ask for documentation.
- Ensure work is done by registered contractors — CRA requires receipts showing contractor name, address, and business number for most credits.
- Claim on your T1 return:
- HATC: Schedule 12 (Home Accessibility Expenses)
- MHRTC: Schedule 12 (same schedule, separate line)
- Ontario Seniors' Safety: Ontario form ON479
- File on time — credits must be claimed in the tax year expenses were incurred.
Common Mistakes to Avoid
- Claiming non-eligible expenses (furniture, appliances, purely cosmetic work for HATC)
- Forgetting the MHRTC is refundable — you can receive it even with zero tax owing
- Missing the requirement that the eligible person must occupy the secondary suite
- Not keeping original receipts — digital copies are acceptable but must be legible
- Double-claiming the same expenses for both HATC and MHRTC (not allowed)
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Can I claim the MHRTC if I'm adding a suite for a rental tenant?
No. The MHRTC is specifically for family members who are seniors (65+) or have a disability. Rental suites for non-family or non-eligible persons do not qualify.
Is the HATC available if I'm not 65 yet but renovating for an elderly parent?
Yes. You can claim the HATC if you are making renovations to a home that is the principal residence of a qualifying individual — including an elderly parent or disabled family member — even if you're the one paying for and claiming the credit.
Can I claim both HATC and MHRTC in the same year?
Yes, but not for the same expenses. If you're adding an accessible secondary suite, you'd need to separate which costs are accessibility-related (HATC) versus general suite construction (MHRTC).