If you are a Canadian homeowner planning a home upgrade, you might be wondering how to minimize your out-of-pocket expenses.
While Canada does not currently offer a broad federal tax credit for general home renovations on a principal residence, programs like the Home Accessibility Tax Credit (HATC) and the Multigenerational Home Renovation Tax Credit (MHRTC), along with certain provincial credits and grants, can help offset costs for specific types of projects.
We explain the active home renovation tax credit programs in Canada, who qualifies, and which renovation expenses may be claimed.
Is There a Home Renovation Tax Credit in Canada Right Now?
Canada does not currently offer a broad federal tax credit for general home renovations on a principal residence. If you are replacing an old kitchen counter or installing cosmetic upgrades solely for aesthetic reasons, those expenses cannot be claimed on your federal income tax return.
Instead, modern Canadian tax relief for home construction and remodeling is tightly restricted. Available tax credits and financial assistance are strictly tied to specific societal needs, such as aging-in-place infrastructure, disability support, medical mobility upgrades, multigenerational living arrangements, and regional energy-efficiency or safety initiatives.
Former Home Renovation Tax Credit vs. Current Renovation Credits
In 2009, the federal government introduced a temporary program, the Home Renovation Tax Credit (HRTC), to stimulate the economy. The former HRTC allowed homeowners to claim a 15% non-refundable tax credit on eligible renovation expenses between $1,000 and $10,000, yielding a maximum household benefit of $1,350. That program officially expired after the 2009 tax year and has not returned.
Today’s tax credits are narrower but offer substantially higher maximum caps for qualifying households.
Program | Status | Who It Helps | Maximum Benefit | Refundable or Non-Refundable |
Former HRTC (2009) | Expired | All eligible Canadian homeowners | $1,350 per household | Non-Refundable |
Home Accessibility Tax Credit (HATC) | Active | Seniors (65+) and individuals with Disability Tax Credit eligibility | Up to $3,000 per year (15% of up to $20,000 in expenses) | Non-Refundable |
Multigenerational Home Renovation Tax Credit (MHRTC) | Active | Families building secondary suites for qualifying adult relatives | Up to $7,250 (14.5% of up to $50,000 in expenses) | Refundable |
Federal Home Renovation Tax Credits Available in Canada
The Canada Revenue Agency (CRA) manages two key federal tax credits that target renovation costs. Neither is intended for basic aesthetic improvements, but they provide substantial relief if your project qualifies.
Home Accessibility Tax Credit: Who Qualifies?
The Home Accessibility Tax Credit (HATC) supports independent living by subsidizing permanent alterations to a dwelling when expenses are incurred for an eligible individual. To claim this credit, the individual residing in the home must meet one of the following criteria:
- Be 65 years of age or older by the end of the tax year.
- Be eligible for the federal Disability Tax Credit (DTC) at any time during the tax year.
In addition to the qualifying individual, either you or an eligible supporting family member may claim the credit for an eligible individual if CRA relationship rules are met, such as a spouse, common-law partner, or a relative who claims a dependent tax credit for that person.
The home itself must be an eligible dwelling, meaning a housing unit in Canada ordinarily inhabited by the qualifying person or claimant, and this can also include certain co-op arrangements through a share of a cooperative housing corporation’s capital stock.
What Renovations Qualify for the Home Accessibility Tax Credit?
An eligible HATC renovation must be a permanent change to the home’s structure. It must specifically aim to improve mobility, increase safety, or reduce the risk of harm within the residence.
Eligible examples include:
- Wheelchair ramps and widened entryways or doorways.
- Walk-in bathtubs or specialized zero-threshold showers.
- Secure grab bars in bathrooms and hallways.
- Mechanical stair lifts and residential elevators.
- Lowered kitchen or bathroom cabinets.
- Lever-style door handles and hands-free plumbing fixtures.
Under current rules, you can claim up to $20,000 in qualifying expenses per year. Because the HATC is a non-refundable tax credit, it directly reduces the amount of income tax you owe, but it will not generate a tax refund check if your tax bill is already zero.
Multigenerational Home Renovation Tax Credit: Who Qualifies?
Introduced to help keep families together, the Multigenerational Home Renovation Tax Credit (MHRTC) helps offset the steep costs of building self-contained living spaces.
To qualify, the renovation must be completed to allow a senior (65+) or an adult eligible for the Disability Tax Credit to cohabitate with a qualifying relative (such as a child, grandchild, sibling, niece, or nephew). The secondary suite must be a fully self-contained unit with its own private entrance, kitchen, bathroom, and dedicated sleeping area.
The MHRTC is a highly valuable refundable tax credit. This means that if the credit reduces your tax liability below zero, the government will issue the remaining balance as a direct tax refund. The benefit is calculated as 14.5% of eligible renovation costs, up to a maximum expense cap of $50,000, delivering a total potential credit of $7,250 per qualifying project.
What Expenses May Qualify Under the MHRTC?
Eligible expenses must be directly attributable to the work performed for the design and construction of the secondary suite. These typically include:
- Professional contracted construction labour and architectural services.
- Raw building materials, electrical components, and plumbing hardware.
- Municipal building permits and engineering inspections.
- Equipment rentals are required specifically for the suite installation.
Financing costs are not included among the following expenses that qualify.
Are Home Renovations Tax Deductible in Canada?
A common source of confusion for homeowners is the difference between a tax deduction and a tax credit. Tax deductions reduce your overall taxable income, while tax credits directly lower your final tax bill.
For a primary residence, most home renovations are personal living expenses and are not tax-deductible. You cannot deduct the cost of a new roof, fence, or furnace from your employment income.
The exceptions to this rule apply primarily to landlords managing income-generating rental properties or self-employed individuals using a dedicated home office. For personal residences, financial relief is strictly limited to the targeted tax credits, provincial accessibility grants, and regional low-interest assistance programs detailed below.
What Home Renovation Expenses Qualify for Tax Credits in Canada?
When applying for targeted federal or provincial programs, only specific expenditures are recognized as allowable expenses under that program. Generally, expenses must represent permanent, integrated improvements to the home.
Potentially Eligible Expenses | Ineligible Expenses |
Professional contractor labor and design fees | Freestanding furniture and decorative wall art |
Integrated fixtures (e.g., walk-in tubs, built-in ramps) | Hand tools and power tools purchased for personal use |
Raw materials (lumber, drywall, concrete, wiring) | Routine home maintenance, cleaning, or snow removal |
Municipal building plans, permits, and inspection fees | Non-integrated appliances (e.g., standard countertop microwaves) |
Equipment rentals used directly for the qualifying build | Routine landscaping maintenance or aesthetic lawn care |
Source: Canada Revenue Agency (2026). Expenses you can claim.
Provincial Home Renovation Tax Credits and Assistance Programs
Beyond federal initiatives, individual provinces run separate assistance programs, and some, like Saskatchewan and British Columbia, offer their own renovation tax credits. Eligibility constraints rely heavily on local regional availability, household income tiers, age, and disability status.
Province | Current Program | Type of Support | Who May Qualify | Maximum Support |
British Columbia | Home Renovation Tax Credit for Seniors and Persons with Disabilities | Refundable Tax Credit | Seniors (65+) and residents with disabilities (or family caretakers) | $1,000 per year (10% of up to $10,000 in costs) |
Ontario | Ontario Renovates | Forgivable Loans / Forgivable Grants | Low-to-moderate income seniors and residents with disabilities | Varies significantly by participating municipality |
Alberta | SHARP / RAMP | Low-Interest Equity Loans / Direct Grants | Seniors with home equity (SHARP) or residents with mobility limitations (RAMP) | Up to $25,000 loan (SHARP); up to $7,500 grant (RAMP) |
Saskatchewan | Home Renovation Tax Credit | Non-Refundable Tax Credit | Eligible renovation claimants; Saskatchewan homeowners can claim 10.5% of eligible renovation expenses starting in 2025 | Varies based on eligible expenses claimed |
New Brunswick | Seniors’ Home Renovation Tax Credit | Tax Credit | Eligible seniors | Up to $10,000 in eligible expenses |
Manitoba | Homeowners Affordability Tax Credit | Property Tax Credit | Eligible homeowners | Up to $1,500 |
BC Home Renovation Tax Credit for Seniors and Persons with Disabilities
British Columbia provides a dedicated, refundable provincial tax credit focused on home functionality and injury prevention. Eligible homeowners or tenants can claim 10% of their qualifying expenditures, up to a maximum credit of $1,000 per calendar year. This program mirrors federal HATC criteria, prioritizing installations like widened doorways, grip rails, and accessible bathroom reconfigurations.
Ontario Home Renovation Tax Credit and Ontario Renovates
Ontario’s historical broad credit, the Healthy Homes Renovation Tax Credit, was retired in 2016.
Today, structural assistance is distributed through the Ontario Renovates program under the National Housing Strategy. Delivered locally through municipal housing branches, it focuses on helping low- to moderate-income seniors complete essential emergency repairs (e.g., structural fixes, roof replacements, updated plumbing/heating) or add accessibility features like outdoor ramps and modified showers.
Alberta Home Renovation Tax Credit and Assistance Programs
Alberta does not offer a broad provincial home renovation tax credit. Instead, it uses targeted financial mechanisms:
- Seniors Home Adaptation and Repair Program (SHARP): Provides low-interest home equity loans up to $25,000 to eligible seniors (65+) with a minimum of 25% home equity to cover safety, energy efficiency, and structural maintenance modifications.
- Residential Access Modification Program (RAMP): Provides direct grants of up to $7,500 per year to help low- to moderate-income Albertans with mobility challenges modify their primary residences.
Home Renovation Disability Grants and Accessibility Funding in Canada
For Canadians managing long-term health or mobility challenges, specialized accessibility grants provide upfront relief rather than waiting for tax season. Key provincial systems include the BC Home Adaptations for Independence (HAFI) or BC RAHA programs, Alberta’s RAMP, and Ontario’s Home and Vehicle Modification Program (HVMP).
These frameworks provide funding for critical physical modifications, such as porch lifts, tracking systems, customized roll-in showers, and sensory adaptations. Because funding limits are subject to annual budget caps, applications must usually be submitted and approved before any construction work begins.
How to Claim Home Renovation Credits or Grants
Homeowners who qualify for a renovation-related tax credit or grant must follow several steps when filing their tax return.
The process usually includes:
- confirming eligibility for the specific program
- keeping all receipts and documentation for expenses incurred
- confirming the tax year in which the renovation was completed
- reporting the total amount paid on the appropriate tax form
The CRA may request documentation to verify that the renovation expenses meet the program’s requirements. Homeowners who are unsure about eligibility may wish to consult a tax professional before claiming the credit.
Can You Finance Renovations and Still Claim a Tax Credit or Grant?
Yes. Securing upfront financing through a personal loan, home equity line of credit (HELOC), or a home equity loan does not disqualify you from claiming a legitimate tax credit or grant. The CRA evaluates whether an expense is eligible based on the nature of the work performed and the timing of invoice payments, not the borrowing source.
Don’t qualify for a home renovation tax credit? Finance them with Alpine Credits
Not every homeowner qualifies for a home renovation tax credit or grant. Many programs have strict eligibility requirements based on age, income, or the purpose of the renovation. Some homeowners choose to finance renovation costs instead.
Alpine Credits offers home equity loans that allow homeowners to borrow against the equity built in their property to help pay for renovations.
Since 1969, we have proudly helped thousands of Canadians secure the funding they need in just three, straightforward steps:
- Apply online— the application with Alpine Credits is simple, allowing you to finish it within minutes.
- Get approved— if you own your home and have at least 25% in equity, you are eligible for a home equity loan from Alpine Credits. Get approved in minutes.
- Receive funding— Alpine Credits will directly deposit the money in your bank account within a few days of your approval.
Contact one of our Financial Solutions Specialists for a free, no-obligation quote today.
Frequently Asked Questions (FAQ)
Is there a federal home renovation tax credit in Canada right now?
No, Canada does not currently have a broad federal home renovation tax credit for general home improvements. Current federal credits are highly targeted, such as the Home Accessibility Tax Credit (HATC) and the Multigenerational Home Renovation Tax Credit (MHRTC).
Does the old Home Renovation Tax Credit still exist?
No. The original federal Home Renovation Tax Credit ended after the 2009 tax year and has not been reintroduced as a general renovation credit.
Who qualifies for the Home Accessibility Tax Credit?
The HATC is available to an eligible individual—such as a senior age 65 or older or someone eligible for the federal Disability Tax Credit (DTC)—or to a qualifying supporting family member who pays for modifications to an eligible dwelling. That home must be a housing unit in Canada and can include certain co-op arrangements.
How much can I claim under the Home Accessibility Tax Credit?
Eligible taxpayers can claim up to $20,000 in qualifying accessibility expenses per year. As a 15% non-refundable credit, it can reduce your personal income tax payable by up to $3,000, but it does not create a refund on its own.
What is the Multigenerational Home Renovation Tax Credit?
The MHRTC is a federal refundable tax credit equal to 14.5% of eligible expenses (up to $50,000 in costs, for a maximum benefit of $7,250) incurred to construct a self-contained secondary unit for a senior or an adult with a disability to live with a qualifying relative.
Are home renovations tax-deductible in Canada?
Most renovations to a primary residence are considered personal living expenses and are not tax-deductible. Deductions are generally limited to specific rental property improvements or to the authorized business use of a home office.
What renovation expenses usually do not qualify for tax credits?
Ineligible expenses include freestanding furniture, decorative items, personal tools, cleaning services, routine seasonal maintenance, and appliances that are not permanently built into the home’s structure.
Can I finance renovations and still claim a tax credit or grant?
Yes. Financing a project does not block a claim, provided the work itself meets the program criteria, invoices are properly documented, and expenses are claimed in the correct tax year.