Home Buyers' Amount Tax Credit 2025: Get $1,500 Back

What Is the Home Buyers' Amount?

The Home Buyers' Amount (HBA) is a $10,000 non-refundable federal tax credit that first-time home buyers can claim on their income tax return. At the federal rate of 15%, this produces a maximum federal tax reduction of $1,500.

The credit was doubled from $5,000 to $10,000 starting with the 2022 tax year, effectively doubling the benefit from $750 to $1,500.

Eligibility Requirements

• You must be a first-time home buyer — defined as not having lived in a home you (or your spouse/common-law partner) owned in the current year or any of the four preceding years
• You must have acquired a qualifying home — a housing unit located in Canada (house, condo, co-op, mobile home, etc.)
• You must intend the home to be your principal place of residence within one year of purchase
• You must be a Canadian resident

Exception for Persons with Disabilities

If you or a related person with a disability acquires a home that is more accessible or better suited to their needs, you may claim the Home Buyers' Amount even if you are not a first-time buyer. The home must be acquired for the benefit of the person with the disability.

How to Claim the Home Buyers' Amount

1. Purchase a qualifying home in the tax year
2. Complete your federal T1 income tax return
3. Enter $10,000 on line 312700 (Home Buyers' Amount)
4. The 15% federal credit calculates automatically = $1,500 reduction in federal tax
5. If you owe less than $1,500 in federal tax, the unused portion is lost (it is non-refundable)

The credit can be split between spouses/common-law partners, as long as the combined claim does not exceed $10,000. Both must qualify as first-time buyers.

Splitting the Credit Between Partners

The split is flexible — you can allocate however makes sense for your tax situation. If one partner has lower income (and therefore less federal tax owing), shift more of the claim to the higher-income partner to maximize the credit usage.

Provincial Home Buyers' Amount Equivalents

Most provinces automatically apply their equivalent credit when you claim the federal Home Buyers' Amount, but some (like Quebec) have a separate provincial claim. Check your provincial tax return instructions.

Combined Federal + Provincial Credit Value

When you add federal and provincial credits together, the total Home Buyers' Amount tax saving is typically:

• Ontario: ~$2,00500 combined (federal + provincial)
• BC: ~$2,00200 combined
• Alberta: ~$1,600 combined
• Quebec: ~$2,2500 combined (federal + separate QC credit)

Non-Refundable vs. Refundable: What It Means

The Home Buyers' Amount is a non-refundable tax credit. This means it reduces your federal tax owing — but if your tax owing is less than the credit, you don't get the difference as a refund. It won't push your balance below zero.

Example: If you owe $800 in federal tax and claim $1,500 HBA credit, your tax owing drops to $00 — but you don't receive the extra $700. To get maximum value, ensure you have at least $1,500 in federal tax owing for the year of purchase.

What Year Do You Claim It?

You claim the Home Buyers' Amount on your tax return for the calendar year in which you purchased the home. If you purchased in October 2025 and file your 2025 return in spring 2026, you claim it on your 2025 T1 return.

Related: Canada FTB Complete Guide | FHSA Guide | LTT Rebates by Province