Get Savings from The Multigenerational Home Renovation Tax Credit.
The MHRTC (Multigenerational Home Renovation Tax Credit) is a refundable federal credit that helps cover the cost of creating a self-contained secondary unit for seniors (65 years and older) or adults eligible for the Disability Tax Credit (DTC).
You can claim:
- 15% of renovation costs, up to $50,000
- Maximum credit of $7,500
Who Can Claim
Eligible Individual
- A Canadian resident who owns the eligible dwelling (or is a beneficiary of a trust that owns it) or who is a qualifying relation of the qualifying individual.
- The eligible individual must ordinarily reside in the dwelling (or intend to reside there ordinarily) within 12 months after the renovation period ends.
Qualifying Individual
- Age 65 or older at the end of the renovation year, or
- Age 18+ at the end of the renovation year and eligible for the Disability Tax Credit.
Additional Rules
- Only one MHRTC claim is allowed for a given qualifying individual in their lifetime.
- Multiple eligible individuals may share the claim if they all meet the conditions; the combined claim cannot exceed the credit limits.
Eligible Multi-Unit Dwellings
The home must be located in Canada and owned by the qualifying individual or a qualifying relative. Within 12 months of the renovation being completed, both the qualifying individual and the relative must ordinarily live there.
The new or converted secondary unit must be self-contained, with a private entrance, kitchen, bathroom, and sleeping area. All work must comply with local zoning regulations, permits, and building codes.
Qualifying Expenses
- To be eligible, expenses must be directly tied to the renovation and incurred after December 31, 2022. This includes construction work by electricians, plumbers, carpenters, and architects, as well as materials, fixtures, equipment rentals, building plans, and permits.
- Routine maintenance, household appliances, electronics, financing costs, and the value of your own labour or tools are not eligible. Payments to family members do not qualify unless they are registered for GST/HST and meet CRA requirements.
- Keep invoices and proof of payment. Retain all documents in case CRA asks to see them.
Other Home Renovation Tax Credits
Home renovations undertaken to accommodate multigenerational living may also qualify for the following federal and provincial tax credits.
Federal: Multigenerational Home Renovation Tax Credit (MHRTC)
Introduced in 2023, the MHRTC offers a refundable tax credit covering 15% of eligible renovation costs, up to a maximum of $7,500. To qualify, renovations must create a self-contained secondary unit with a private entrance, kitchen, bathroom, and sleeping area, allowing a senior (65 years or older) or an adult eligible for the Disability Tax Credit to live with a qualifying family member. This credit can be claimed once per qualifying individual during their lifetime.
This federal non-refundable tax credit helps cover the costs of renovations that enhance home safety and accessibility for seniors or individuals with disabilities.
- Maximum Credit: Reduce your federal taxes by up to $3,000 (15% of up to $20,000 in expenses).
- Who Qualifies: Seniors (65+) and individuals eligible for the Disability Tax Credit (DTC).
- Example Renovations: Wheelchair ramps, walk-in tubs, and grab bars.
Provincial: BC Home Renovation Tax Credit for Seniors and Persons with Disabilities
In addition to the federal credit, BC residents may be eligible for a provincial tax credit. This credit provides a 10% refund on qualifying renovation expenses, up to $1,000 per year, for seniors (65+) and individuals with disabilities. Eligible renovations include those that improve accessibility or mobility within the home, such as installing handrails or widening doorways. The credit can be shared among eligible residents of the home, but the total amount is capped at $1,000 per year.
This provincial credit helps B.C. seniors and persons with disabilities afford permanent renovations to improve home safety and accessibility. In British Columbia, homeowners can benefit from both federal and provincial tax credits designed to support multigenerational living through home renovations.
- Maximum Credit: Receive a refundable tax credit of up to $1,000 (10% of up to $10,000 in expenses).
- Who Qualifies: B.C. residents who are seniors (65+) or eligible for the Disability Tax Credit (DTC).
- Key Feature: Being refundable means you can get this amount back even if you owe no income tax.
For Personalized Financial Advice
Please note that the information provided above is for general guidance only and does not constitute professional tax advice. Every individual’s financial situation is unique. Tax laws and regulations are complex and subject to frequent changes.
To ensure you meet all requirements and maximize your eligible claims, I strongly recommend consulting with a qualified tax advisor or accountant for personalized advice.
Contact US for more information about the Home Renovation Tax Credit.