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The first time home buyer tax credit in Canada is built on a $10,000 amount you claim on your return, and it’s worth $1,400 in federal tax at the 14% rate used in our 2026 tool. That’s a modest cheque, and you only get it if you have enough tax to cancel. Other programs, like the FHSA and the Ontario land transfer tax refund, are often worth more.
What is the first-time home buyers’ tax credit worth?
The CRA calls it the home buyers’ amount, line 31270 on your return. For the 2025 tax year the amount is $10,000, as the CRA’s line 31270 page shows. It’s non-refundable, so it lowers the tax you owe but never produces a refund by itself. The credit is the amount times the lowest federal rate.
The 2026 amount hasn’t been confirmed on a CRA page that we could read, and the calculator assumes it stays at $10,000. Treat $1,400 as an estimate and check line 31270 when you file.
To qualify, neither you nor your spouse or partner may have owned and lived in a home, here or abroad, during the year of purchase or the four years before. There’s an exception if you or a related person qualifies for the disability tax credit and the home makes life easier for that person. You also need to plan to live in the home as your principal residence within a year of buying it.
Can you and your partner both claim it?
Only if you both qualify, and then you share one $10,000 amount instead of getting two. Say Priya and Dev, both first-time buyers, buy together. They can split the $10,000 however they like, but the claims added up can’t go past it. The family’s total saving stays at $1,400. If only one of them is a first-time buyer, that person is the one who can claim it.
A sensible tactic is to put the claim on the return of whoever has more tax to cancel, since a non-refundable credit that hits a zero tax bill is wasted.
Where does it fit next to other first-home help?
| Program | What it does |
|---|---|
| Home buyers’ amount | $10,000 claimed on your return (2025 amount), non-refundable credit |
| First Home Savings Account (FHSA) | $8,000 a year, $40,000 lifetime, deductible, tax free on a qualifying withdrawal |
| RRSP Home Buyers’ Plan | Withdraw as much as $60,000 from your RRSP, then repay it across 15 years |
| Ontario land transfer tax refund | Up to $4,000 for first-time buyers |
| First-time home buyers’ GST/HST rebate | For new homes, up to $50,000, full to $1,000,000 and phased out to zero at $1,500,000 |
The federal GST rebate applies to agreements signed on or after March 20, 2025 and before 2031, and it’s for new builds, not resale homes.
How much can a first-time buyer save in Ontario?
Picture a buyer in Ontario with $90,000 of income buying a $600,000 home in Toronto. The tax credits calculator shows $1,400 from the home buyers’ amount, and it’s federal only. The land transfer tax calculator shows a bill of $8,475 once the new-buyer rebate is applied, because the Ontario and Toronto rebates together take $8,475 off the $16,950 of combined tax on that price.
Now add an FHSA. Put in $8,000 and the FHSA calculator shows $2,372 of tax saved at that income. That’s more than the federal credit, and the money can go straight into the down payment tax free. If you have a lot of time before buying, the FHSA is the best of the lot.
Add it up for that buyer and the picture is plain. The land transfer rebates come to $8,475, the FHSA deduction to $2,372 and the federal credit to $1,400, for $12,247 of help on a $600,000 home. The tax credit is the smallest of the three.
Each program defines who counts as new to home ownership in its own way. Check the rules of the one you want first.
What are the common traps?
Most people trip on the timing. The home buyers’ amount goes on the return for the year you buy, not the year you start looking. If your tax is already low, some of the credit goes unused.
Another trap is the Home Buyers’ Plan. The 15-year repayment starts in the fifth year after the withdrawal for first withdrawals from 2026 to 2028. Test your plan with the down payment calculator, and see what you can afford with the mortgage affordability calculator.
Provincial programs vary a lot. We’ve only confirmed the Ontario refund amount here, so look up your own province’s page before you budget for one.
Do you need an accountant for this? Rarely, since the credit takes one line on your return. Buying with a relative or after a separation is the exception. There, a tax preparer can tell you how the four-year test applies.
The sources behind this page
The $10,000 home buyers’ amount and the eligibility test come from the Canada Revenue Agency page on line 31270 for 2025. The RRSP withdrawal and FHSA limits come from CRA pages on those plans, the GST/HST rebate from the CRA first-time home buyers’ rebate pages, and the Ontario refund from the Ontario government. The 14% credit rate and 2026 amount are assumptions in our tool. No government body is connected to this website.
Frequently asked questions
How much is the first-time home buyers' tax credit?
The home buyers' amount is $10,000 for 2025. The credit is that amount times the lowest federal rate, so about $1,400 at 14% in our 2026 tool.
Who qualifies for the credit?
Neither you nor your spouse or partner may have owned and lived in a home during the purchase year or the four years before. A disability exception exists.
Is the credit refundable?
No. It only reduces tax you owe.
How much can I take from my RRSP under the Home Buyers' Plan?
Up to $60,000, with 15 years to repay it.
Do first-timers get a land transfer tax refund?
In Ontario, yes, up to $4,000. Other provinces have their own rules, so check the provincial page.
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