Families looking to create secondary housing units for seniors or adults with disabilities can now benefit from Canada’s Multigenerational Home Renovation Tax Credit (MHRTC). This program allows families to claim up to $7,500 in tax credits for eligible renovation expenses. Here’s everything you need to know about the program, from eligibility to how to claim your savings.
What Is the Home Renovation Tax Credit?
The MHRTC is a refundable tax credit designed to help families make their homes more accessible for seniors or individuals with disabilities. It supports renovations that create a separate, self-contained living space within an existing home.
The credit allows families to claim 15% of eligible renovation costs, up to a maximum of $50,000. That means you could save as much as $7,500 on your taxes for renovations completed in 2025.
Who Qualifies for the Credit?
Eligibility is based on several key criteria:
- The Individual: The renovation must benefit a senior aged 65 or older, or an adult eligible for the Disability Tax Credit.
- The Property: The home must be located in Canada and owned by the qualifying individual or their family.
- The Renovation: The work must result in a self-contained secondary unit with its own entrance, kitchen, bathroom, and sleeping area.
What Expenses are Covered
Eligible expenses include labour, materials, equipment rentals, professional services (like architects), and required permits. Items like furniture, appliances, or general maintenance costs are not covered.
How to Claim the Tax Credit
Claiming the MHRTC is straightforward:
- Complete the qualifying renovation by the end of the tax year.
- Keep all receipts and documentation related to the renovation.
- Claim the credit on your income tax return for the year the work is completed.
- Submit any required documentation to the Canada Revenue Agency (CRA).
When Will You Get the Credit?
The MHRTC is a refundable tax credit, which means you’ll receive it as part of your tax refund for the year the renovations are completed. For 2025 renovations, this would be when you file your 2025 taxes in early 2026.
Why Is This Credit Important?
This tax credit not only helps families save on renovation costs but also encourages the creation of supportive living environments for seniors and people with disabilities. By making homes more accessible, the MHRTC promotes multigenerational living and reduces financial strain on caregivers.
