Updated Checked by the Tax-Services.ca editorial team How we check
There’s no general home improvement tax credit for Canadian homeowners that we could find on the CRA’s pages. Two federal credits cover specific renovations: the home accessibility tax credit, on up to $20,000 of costs a year, and the multigenerational home renovation tax credit, worth up to $7,250 on a secondary suite for 2025. Both depend on who lives in the home.
The federal credits that exist right now
| Credit | Expense limit | Credit rate | Maximum credit | Refundable? |
|---|---|---|---|---|
| Home accessibility (HATC) | $20,000 a year per dwelling | Lowest federal rate (14.5% for 2025) | About $2,900 for 2025 | No |
| Multigenerational renovation (MHRTC) | $50,000 per renovation | 14.5% for 2025 | $7,250 | Yes |
You may see 15% and $7,500 quoted elsewhere. Those are older figures. The CRA’s page on the multigenerational home renovation tax credit now says the credit is 14.5% of your costs, up to $7,250, on up to $50,000 per qualifying renovation. The home accessibility figure is our own arithmetic at the same rate. The lowest federal rate is 14% from 2026, so expect smaller amounts ($2,800 and $7,000 at the limits) for work claimed on 2026 returns. We couldn’t confirm 2026 figures on a CRA page, so check before you plan around them.
The provinces and municipalities run their own programs, and we haven’t confirmed any of them here.
Does a kitchen or bathroom renovation qualify?
No, not on its own. A new kitchen, a deck or a finished basement for yourself doesn’t earn either credit. That’s the honest answer behind most searches for a home improvement tax credit. Both credits are aimed at a particular person living in the house.
The one thing a regular renovation does is raise your cost base. The CRA counts additions and improvements as part of the adjusted cost base of real estate, but routine repairs and maintenance don’t count. That doesn’t help while you live there, and it may not matter if the home is a principal residence. It does matter for a rental. See our guide to the capital gain on a property sale.
Who can claim the accessibility credit?
You qualify if you’re 65 or older by the end of the year, or eligible for the disability tax credit. A spouse, family member or caregiver can also claim for that person. The CRA’s page on home accessibility expenses lists the eligible costs: materials, fixtures, permits and contractor work, such as a walk-in shower, grab bars or a ramp.
Not eligible: routine repairs, appliances, housekeeping, gardening, financing costs, your own labour or tools, or work done mainly to raise the property’s value. When several people qualify for the same home, the $20,000 is shared, not doubled. If the DTC is the route in, check your status with the disability tax credit calculator.
Who can claim the secondary suite credit?
The MHRTC is for building a self-contained unit: private entrance, kitchen, bathroom and sleeping area. The renovation has to be finished in the year you claim. One person living there must be 65 or older, or aged 18 to 64 and eligible for the disability tax credit.
The claim is one-time for that qualifying person in their lifetime. The eligible dwelling must be owned by the qualifying person or a qualifying relation (a parent, grandparent, child, grandchild, sibling, aunt, uncle, niece or nephew aged 18 or over), and they must live there or expect to within 12 months.
What is a claim actually worth?
Take $20,000 of accessibility work for 2025. At 14.5% the credit is $2,900. Because it’s non-refundable, it only cuts tax you owe. If your federal tax is $2,000, you can use $2,000 of it, and the other $900 doesn’t come back as cash. Use the tax credits calculator to see where you stand, and note it is federal only.
Now a $60,000 secondary suite. Only the first $50,000 counts, so the credit is $7,250 ($50,000 times 14.5%). Since it’s refundable, you get that as money back even with no tax owing, a few thousand bucks a family can actually use. Labour you do yourself and your own tools aren’t counted. Paying a contractor is.
Mistakes to avoid
Don’t file a claim for a general upgrade. Keep every invoice, payment proof and the vendor’s GST/HST details. You don’t send them with your return, but the CRA can ask for them later. Check the claim year: for the MHRTC it’s the year the work is completed, not the year you pay. And when you’re planning a larger project, run the numbers first in the HELOC calculator if you’d borrow against the home.
One more trap: work done by a relative. The CRA page says work by a related person doesn’t count unless that person is registered for GST/HST, so a cousin who’s handy with a hammer may not earn you a credit.
Sources, and how we checked them
Credit limits, rates and eligibility come from the Canada Revenue Agency‘s pages on home accessibility expenses and the multigenerational home renovation tax credit, checked for 2025 returns. We couldn’t confirm any provincial credit. This is an independent guide with no connection to the CRA.
Frequently asked questions
Is there a home improvement tax credit in Canada?
Not a general one that we found. Two federal credits cover accessibility work and a secondary suite for a senior or a person with a disability.
How much is the home accessibility tax credit?
Up to $3,000 a year, which is 15% of up to $20,000 of eligible costs. It is non-refundable.
How much is the multigenerational renovation credit?
Up to $7,500, which is 15% of up to $50,000 of costs for a qualifying renovation. It is refundable.
Does a new kitchen qualify?
Not by itself. The credits are tied to accessibility or a self-contained secondary unit for a qualifying person.
Do I send receipts with my return?
No, but keep invoices and proof of payment in case the CRA asks.
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