Canadian seniors, caregivers, and adults with disabilities now have a powerful new way to boost financial resilience while improving living conditions.
The Multigenerational Home Renovation Tax Credit (MHRTC) offers a refundable tax credit worth 15% of renovation costs, up to a maximum of $7,500 per eligible person.
Whether you’re building a safe secondary suite or adapting your home for accessibility, this new credit is designed to help you save big and foster independence right at home.
What Is the MHRTC?
- MHRTC is a Refundable tax credit equal to 15% of qualifying expenses, up to $50,000.
- That equals a maximum of $7,500 per eligible individual per lifetime.
- Only one claim per qualifying individual, making it crucial to apply wisely.
Who Qualifies?
- The “qualifying individual” must be:
- A senior (65 years or older) by the end of the renovation year, or
- A person eligible for the Disability Tax Credit (DTC) (adults 18–64).
- The renovation must create a self-contained secondary unit with its own entrance, kitchen, bathroom, and sleeping space.
- Other eligible participants include:
- The cohabiting spouse, common-law partner, or another qualifying relation (like a parent, grandparent, sibling, aunt/uncle, niece/nephew, all 18+).
- The secondary unit can be an addition or a separate structure on the same property, as long as the qualifying individual will move in within 12 months of renovations being completed.
What Qualifies for the Credit?
Eligible expenses include:
- Design and architectural fees
- Permits
- Labor costs (contractors)
- Building materials
- Accessibility modifications (ramps, grab bars, door widening, etc.)
Ineligible costs include:
- Your own labor or tools
- Appliances, landscaping, cosmetic upgrades
- Financing costs
- Projects aimed solely at increasing property value
Timeline & Claiming Steps
| Step | Action | Notes |
|---|---|---|
| 1 | Renovation completed within the tax year | Only completed projects are eligible |
| 2 | Gather documentation | Keep receipts, permits, invoices |
| 3 | File on your T1 tax return | Use relevant CRA forms (e.g., line 45355, Schedule 12) |
| 4 | Timing | Claim it for the year renovation was completed |
| 5 | Lifetime limit | Only one MHRTC claim per qualifying individual |
Planning a multi-year renovation? Make sure the unit is fully complete within a tax year to qualify.
Why This Credit Matters
- Financial Relief: Families save up to $7,500, easing the burden of costly renovations.
- Accessible Housing: Enables seniors or disabled individuals to stay connected and supported in their own home.
- Independence & Stability: Promotes in-home care, reduces institutional stays, and supports multigenerational living.
Example Scenarios
Example 1: Senior Father Moves In
Jane renovates her basement to include a kitchenette and accessible bathroom so her 70-year-old father can move in.
- Cost: $40,000 × 15% = $6,000 tax credit
Example 2: Splitting With a DTC-eligible Adult
Maria and her adult son (eligible for DTC) share renovation costs for a secondary suite.
- Total cost: $50,000
- Each can claim 15% individually: $7,500 each (if split properly and meet criteria)
MHRTC vs Other Renovation Credits
There are also non-refundable accessibility-related credits:
- Home Accessibility Tax Credit (HATC):
- Non-refundable, up to $3,000 credit based on $20,000 in costs (15%). Best for smaller accessibility improvements.
- B.C. Provincial Credit:
- Refundable, 10% of expenses, up to $1,000 for permanent renovations to improve mobility/safety.
MHRTC Benefits:
- Higher maximum benefit
- Refundable (better for low-income households)
- Supports building entire secondary units
Canada’s $7,500 Multigenerational Home Renovation Tax Credit is a game-changer for seniors, caregivers, and adults with disabilities.
By offering deep financial relief through a refundable, high-value credit, it encourages safe, supportive multigenerational living spaces.
Whether you’re planning to welcome a relative with mobility needs or setting up a safe living area for a DTC-eligible adult, this credit cuts costs dramatically—while boosting independence and family cohesion.
Act now—plan your renovation, collect your documentation, and file your claim for the year it’s completed to maximize this valuable opportunity.
FAQs
Can multiple family members claim the MHRTC together?
Yes—if more than one eligible person (e.g., both spouses or relatives) contribute, they can split eligible costs. However, each qualifying individual only gets one $7,500 lifetime credit. The total expenses claimed must not exceed $50,000 per individual.
Is this credit refundable or just tax reduction?
The MHRTC is refundable, meaning if the credit exceeds your tax owing, you’ll receive the difference as a refund—unlike some other non-refundable credits.
What kinds of renovations count as “finished” for this credit?
The renovation must produce a fully usable secondary suite—with its own bedroom, bath, kitchen, and entrance—complete within a tax year. Partial projects or cosmetic updates don’t qualify.